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Minutes for HB2684 - Committee on Taxation
Short Title
Providing a sales tax exemption for area agencies on aging.
Minutes Content for Tue, Mar 1, 2022
Chairperson Smith opened the hearing for HB2684.
Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2684 that would provide a sales tax exemption for a not-for-profit corporation that is designated as an area agency on aging. (Attachment 2) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, is estimating HB2484 would decrease State Revenues by $130,000 in FY2023. The State General Fund would be estimated to decrease by $109,000 and the State Highway Fund by approximately $21,000 in FY2023. Ms. Smith stood for questions from Committee members.
Proponents:
Leslie Anderson, Kansas Association of Area Agencies on Aging and Disabilities, testified as a proponent for HB2684 stating the intent of the bill is to cause equity among all eleven agencies on aging. Ms. Anderson stated a 2022 public policy priority was voted on and the three county government agencies were in support of the other agencies becoming tax exempt for sales. She stated when there is more money that means more services noting the value of services especially when it comes to a person who wants to receive services in their home so they don't have to go to a nursing home. Ms. Anderson stood for questions from Committee members. (Attachment 3)
Michelle Morgan, Northwest Kansas Area Agency on Aging, Inc. testified as a proponent for HB2684 stating the Northwest Agency is part of a national network created in 1973 by the Older Americans Act. The agency is a private nonprofit organization with the responsibility of administering to older Americans and their caregivers. To maximize the impact of service dollars for older Americans, Ms. Morgan noted HB2684 establishes equity for the value of service dollars available to older adults in both the rural and urban part of the state. Currently, there are eight non-governmental, nonprofit Area Agencies on Aging that pay state sales tax and three county government Area Agencies on Aging in Kansas which are Johnson, Wyandotte, and Sedgwick) that are exempt from state sales tax. HB2684 would establish taxation equity across the state for older Kansans in need of services. (Attachment 4) Ms. Morgan stood for questions from Committee members.
Julie Covert Walter, North Central Flint Hills Area Agency on Aging, Inc., testified as a proponent for HB2684 stating their agency serves more than 67,000 older Kansans and their caregivers in eighteen counties in north central Kansas and is located in Manhattan, Kansas. She noted their agency's mission is to provide and coordinate services to help older Kansans to maintain their dignity, health and well-being to enable them to live in their homes and be contributing members of their communities. HB2684 would establish the need to change the tax statute and provide specific language that creates parity and equity between county Area Agencies on Aging and the eight non-government Area Agencies on Aging. (Attachment 5) Ms. Covert Walter stood for questions from Committee members.
Cindy Lane, Southeast Kansas Area Agency on Aging testified as a proponent for HB2684 stating their agency provides services for the elderly and disabled in nine counties in the southeast corner of the State. She noted most of the funding for their agency comes from Federal and State dollars stating Federal dollars has remained unchanged for 20 years. (Attachment 6) Ms. Lane stood for questions from Committee members.
Chairperson Smith closed the hearing on HB2684.
