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Minutes for HB2721 - Committee on Taxation
Short Title
Providing a sales tax exemption for sales of over-the-counter drugs.
Minutes Content for Tue, Mar 8, 2022
Chairperson Smith opened the hearing for HB2721.
Adam Siebers, Assistant Revisor, provided an overview for HB2721 stating the bill provides a sales tax exemption for the sale of over-the-counter drugs. (Attachment 1). Over-the-counter drugs do not include grooming and hygiene products such as soaps, cleaning solutions, shampoo, toothpaste, antiperspirants and sun tax lotions and screens. Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2721 stating the bill would decrease state revenues by approximately $20.5 million in FY2023. She noted in order to come up with the estimate, the department reviewed consumer data and national retail sales statistics to come up with the estimate. Ms. Smith stood for questions from Committee members.
Proponent:
Representative Stogsdill, House District 21, testified as a proponent for HB2721 stating the bill would be good for Kansans in two different ways which would be from a humanitarian and an economic standpoint. HB2721 would make Kansas more competitive with surrounding states when purchasing over-the-counter medications and an incentive for Kansas consumers who may purchase over-the-counter medications in neighboring state to remain in Kansas. (Attachment 2) In summary he noted HB2721 would make over-the-counter medications more affordable for Kansans as well as make Kansas pharmacies and grocery stores more competitive with surrounding states. Representative Stogsdill stood for questions from Committee members.
In response to a question, Edward Penner, Research Analyst, stated there are currently ten states that have a tax exemption for over-the-counter medications which are Flordia, Maryland, Minnesota, New Jersey, New York, Pennsylvania, Texas, Vermont, Virgina, and the District of Columbia.
Chairperson Smith closed the hearing for HB2721.
