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Minutes for HB2773 - Committee on Taxation
Short Title
Providing a sales tax exemption for certain purchases by the boys' and girls' club of Topeka.
Minutes Content for Mon, Mar 18, 2024
Chairperson Smith opened the hearing for HB2773.
Adam Siebers, Assistant Revisor, provided an overview for HB2773 that would provide a sales tax exemption for the Boys' and Girls' club of Topeka. The bill would provide the exemption for all sales of tangible personal property or services purchased by the Boys' and Girls' Club of Topeka which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling a workforce readiness and career development center for middle school and high school students. (Attachment 2) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2773 stating that the Department of Revenue estimates the bill would decrease state revenues by $325,000 in FY2025. Of that total, the State General Fund is estimated to decrease by $267,000 in FY2025, while the State Highway Fund is estimated to decrease by $58,000 in FY2025. To formulate the estimate, the Department of Revenue reviewed data from the Boys' and Girls' Club of Topeka, which reports that it has a capital project with taxable expenditures estimated at $5.0 million. Ms. Smith stood for questions from Committee members.
Proponents:
Dawn McWilliams, CEO, Boys' and Girls' Club of Topeka, testified as a proponent for HB2773 stating the focus for the Boys' and Girls' Club of Topeka is out of school time services for youth ages 5 to 18 years old. The Boys' and Girls' Club of Topeka has been a pillar of the Topeka Community since 1955, earning a reputation for excellence in providing comprehensive services that address the needs of the Topeka youth. The clubs have gone from serving young men and boys to young women, young men and teenagers in fourteen club sites across Topeka and Shawnee County. She noted the focus is on youth development and providing youth with a successful future, academic success, developing good character as well as living a healthy lifestyle and workforce development that has become a key component in preparing youth for life after school. Ms. McWilliams emphasized the clubs have a high population of teens where this investment is essential. The clubs provide a percentage of services to kids who are in foster care as well as kids that are identified as homeless. This is changing the trajectory of the teens' future which is having a dramatic effect on the infrastructure of Topeka as well. (Attachment 3)
T. C. Broadnax, on behalf of Boys' and Girls' Alumni, testified via WebEx as a proponent for HB2773 stating as an alum of the Boys' and Girls' Club of Topeka and the current City Manager for Dallas, Texas he understands the transformative impact the clubs can have on the lives of young people and the community. Mr. Broadnax noted the clubs provided him with a safe and nurturing environment where he could explore his interests, build meaningful relationships, and acquire tools needed to navigate the complexities of life and career. Providing a sales tax exemption for the Boys' and Girls' Club of Topeka is a strategic investment in the future prosperity of Topeka and its residents. (Attachment 4)
Timothy B. Phelps, Deputy Director of Administration, Shawnee County Department of Corrections, testified as a proponent for HB2773 noted the Boys' and Girls' Club of Topeka has found a working formula in the way they engage with juveniles, the way they support their growth and development, and the way they show them that they are loved and respected. The Teen Center Work Program has every chance to become the model for how juveniles who need structure and help, can be successful adults with functional skills and renewed understanding of their abilities to grow and achieve in their life. (Attachment 5)
Daina K. Williams, on behalf of L&J Building Maintenance Companies, testified as a proponent for HB2773 noting the support for the request of a sales tax exemption for the Boys' and Girls' Club of Topeka workforce readiness, career, and leadership development center. This investment is crucial for the future success of the Topeka youth and community as a whole. (Attachment 6)
John Nave, Executive Vice-President AFL-CIO, testified as a proponent for HB2773 noting many of their members utilize the facilities here and across the state. The support for the Boys' and Girls' Club Topeka ensures safe care for the youth by expanding care capacity, providing families with crucial resources that empower their children for success. The envisioned workforce readiness center under HB2773 embodies the Kansas AFL-CIO mission commitment to equipping young individuals with the essential skills and experiences needed to thrive in today's competitive job market. (Attachment 7)
Jam'mryee Williams, Kansas citizen, testified as a proponent for HB2773 as an alumni of the Boys' and Girls' Clubs of Topeka. He noted having experienced firsthand the invaluable impact the programs had during his formative years, the new center will be a game changer for the youth in the Topeka community. This investment will not only transform physical spaces but will also transform lives, empowering young people to reach their full potential and become leaders in the Topeka community. (Attachment 8)
The proponent conferees stood for questions from Committee members.
Written testimony was submitted by the following as proponents for HB2773.
Aaron Mays, Vice Chair, Board of County Commissioners, (Attachment 9)
Juliet Abdel, President, SVP Government Affairs, Great Topeka Chamber, (Attachment 10)
There being no conferees as opponents or neutral to the bill, Chairperson Smith closed the hearing for HB2773.
Chairperson Smith adjourned the meeting.
