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Minutes for HB2485 - Committee on Taxation
Short Title
Providing for a sales tax exemption for sales made by student organizations that contract with schools.
Minutes Content for Thu, Mar 3, 2022
Chairperson Smith opened the hearing for HB2485.
Adam Siebers, Assistant Revisor, provided an overview on HB2485 stating the bill will need a technical amendment. (Attachment 1)
Kathleen Smith, Kansas Department of Revenue, stated HB2485 would have no fiscal impact on the state or local tax revenues as it is written now. The technical amendment that the Revisor may bring forward will possibly change the fiscal impact on the state or local tax revenues.
Proponents:
Representative John Alcala, House District 57, testified as a proponent for HB2485 noting the bill would provide a tax exemption on sales made by school operated and/or sponsored organizations. He suggested an amendment for the bill on Line 33, Section 1 should read "operates with agreement with or is sponsored by". (Attachment 2) Representative Alcala stood for questions from Committee members.
Dan Carson, Ignite Fundraising Solutions, testified as a proponent for HB2485 stating Kansas tax laws for school fundraising projects vary greatly. Schools have a list of groups that are exempt from sales tax and groups that are not. PTO and PTA groups in elementary schools are exempt, but if a principal or staff member runs a fundraiser, it is not exempt. Kansas is one of handful of states that require sales tax on school fundraising items. (Attachment 3) Mr. Carson stood for questions from Committee members.
Chairperson Smith closed the hearing on HB2485.
