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Minutes for SB8 - Committee on Taxation
Short Title
Reducing penalties for the late filing of and the failure to file personal property renditions and the discovery of escaped personal property.
Minutes Content for Wed, Mar 15, 2023
Chairperson Smith opened the hearing for SB8.
Adam Siebers, Revisor, presented an overview for SB8 that provides effective January 1, 2024, a person would only be required to file an initial statement listing tangible personal property with the county appraiser. No subsequent annual statement shall be required to be filed with the county appraiser regarding such property unless there is a change to report relating to the property previously listed or the statement. (Attachment 1)
David Harper, Director of Property Valuation, KDOR, presented an overview on the fiscal note for SB8 stating in 2022 there was 52,000 penalties assessed which is about 3.4 percent of the total personal property value. The enactment of SB8 would reduce the state building fund receipts by $27,485 per year, the bill would decrease property tax revenues that school districts would receive through the state's mill levy by $366,468. Mr. Harper stood for questions from Committee members.
Proponents:
John Brennan, Hutchinson, Kansas, testified as a proponent for SB8 which reduces the percentage of penalty on Kansas taxpayers when they do not report or affirm the personal property they own in a timely manner to their county appraiser's office. The current penalty can be as much as 50.0 percent of the actual tax owed on personal property and SB8 would reduce the maximum penalty to 12.5%. A penalty is appropriate for being late but the current percentage is excessive and unreasonable. (Attachment 2) Mr. Brennan stood for questions from Committee members.
Randy Stookey, Kansas Grain and Feed Association, and Renew Kansas Biofuels Association, testified as a proponent for SB8 requesting the Committee to pass the bill out favorable without further amendment. (Attachment 3) Mr. Stookey stood for questions from Committee members.
Martha Smith, Kansas Manufactured Housing, testified as a proponent for SB8 as amended would as of January 1, 2024, require a filing only if there had been a change, after the initial statement is filed. The amendment takes the burden off the taxpayers to file the same paperwork annually and save counties a substantial amount for the cost of mailing failure to file notices. (Attachment 4) Ms. Smith stood for questions from Committee members.
Senator Steffen, Senate District 34, testified as a proponent for SB8. No testimony was submitted. Senator Steffen stood for questions from Committee members.
Written testimony was submitted by the following as proponents for SB8:
Shahira Stafford, Kansas Cooperative County, (Attachment 5)
Spencer Duncan, League of Kansas Municipalities, (Attachment 6)
Neutral:
Sean Robertson, Kansas County Appraisers Association, submitted written testimony as neutral to SB8. (Attachment 7)
