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Minutes for HB2709 - Committee on Taxation

Short Title

Providing a sales tax exemption for purchases by a not-for-profit corporation operating a community theater.

Minutes Content for Tue, Mar 1, 2022

Chairperson Smith opened the hearing on HB2709.

Adam Siebers provided an overview for HB2709 that would provide a sales tax exemption for purchases made by a not-for-profit corporation that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986 and operates a theater in the State of Kansas. (Attachment 7)  Mr. Siebers stood for questions from Committee members.

Kathleen Smith stated the Kansas Department of Revenue is estimating HB2709 would decrease state revenues by $148,000 in FY2023.  Of that total, the State General Fund is estimated to decrease by $124,000 in FY2023, while the State Highway Fund is estimated to decrease by $24,000 in FY2023.  HB2709 is estimated to decrease local revenues by $52,000 in FY2023.  Ms. Smith stood for questions from Committee members. 

Michael Spicer, Executive Director of Salina Community Theatre, testified as a proponent for HB2709 stating the organizations described in this bill are unique in what they offer and essential to the cultural fabric of the cities of their regions and the State of Kansas.  He stated the organizations are not asking for an exemption on the tickets but on the items purchased to create the live theatre experience.  The limited offset will be completely reinvested in the local and state economies. (Attachment 8)  Mr. Spicer stood for questions from Committee members.

Angela Cassette, Music Theatre of Wichita, testified as a proponent for HB2709 stating she is here to ask the Committee to invest in the non-profit theaters in Kansas.  She stated if the organization invested the $30,000 per year in tax relief, HB2709 would allow the organization to hire people.  The loss of sales tax revenue to the state starts to impact the state's economy in payroll, income taxes, and summer employees brought into Kansas to rent apartments and spend money.  Ms. Cassette stated HB2709 would help our professional theaters survive in the post-covid era and put the organization on a level playing field with the other arts and culture organization in our state. (Attachment 9)  Ms. Cassette stood for questions from Committee members.

Written testimony was submitted by the following as proponents for HB2709:

Vicki Brokke, Topeka Civic Theatre, (Attachment 10)

Mary Doveton, Theatre Lawrence, (Attachment 11)

Travis Grossman, Theatre Atchison (Attachment 12)

Monte Dibben, Greater Plains Theatre (Attachment 13)

Chairperson Smith closed the hearing on HB2709.