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Minutes for HB2487 - Committee on Taxation

Short Title

Providing a 0% state rate for sales and use taxes for sales of food and food ingredients and providing for the levying of taxes by cities and counties, providing for an exemption from sales and use taxes for sales of farm products sold at farmers' markets, and discontinuing the nonrefundable food sales tax credit.

Minutes Content for Tue, Jan 25, 2022

Chairperson Adam Smith opened the hearing for HB2487.

Mr. Siebers provided an overview on HB2487 that would levy a sales and compensating use tax rate at 0 percent for the state rate for sales of food and food ingredients.  (Attachment 35)

Ms. Smith provided an overview on the fiscal note for HB2487 stating the bill would exempt food and food ingredients from state retail sales and compensation use tax on July 1, 2022.  The bill provides a sales tax exemption for farm products sold at farmers' market and the bill also includes a definition of a farmers' market.  The Department of Revenue estimates HB2487 would reduce state revenues by $442.9 million in FY2023.  The State General Fund is estimated to decrease by $449.0 million in FY2023, while the State Highway Fund is estimated to increase by $6.1 million in FY2023.  The bill would require $525,864 from the State General Fund in FY2023 and in future fiscal years for the ongoing costs for the Department of Revenue to hire eight new full time employee positions to provide customer relations and business support and meet additional accounting and audit needs.

Proponents:

Mallory Lutz, Little Government Relations, testified as a proponent for HB2487.(Attachment 36)

Glenda DuBoise, AARP Kansas State Director testified as a proponent for HB2487.  (Attachment 37)

Lindsie Ford, Kansas Coalition against sexual & domestic violence testified as a proponent for HB2487 (Attachment 38)

Emily Fetsch, Kansas Action for Children testified as a proponent for HB2487(Attachment 39)

Haley Kottler, Kansas Appleseed Center for Law and Justice testified as a proponent for HB2487. (Attachment 40)

Written only testimony as a proponent for HB2487 was submitted by the following:

Benjamin Dome, Student at Victoria High School (Attachment 41)

Donna Ginther, Director, Institute for Policy & Social Research (Attachment 42)

Stuart Little, Little Government Relations (Attachment 43)

Karen Siebert, Harvesters (Attachment 44)

Susan Jagerson, Live Well, Geary County (Attachment 45)

Tom Buller, Kansas Rural Center (Attachment 46)

Andy Sanchez, Kansas AFL-CIO (Attachment 47)

John Jenks, The Greater Kansas City Chamber of Commerce (Attachment 48)

Tim Graham, Kansas National Education Association (Attachment 49)

Daniel Silva, KCK Chamber of Commerce (Attachment 50)

Rachel Marsh, Children's Alliance of Kansas (Attachment 51)

Jay Hall, Kansas Association of Counties (Attachment 52)

Julie Brewer, United Community Services of Johnson County (Attachment 53)

Jessica Lehnherr, United Way of Greater Topeka (Attachment 54)

Lisse Regehr, Thrive Allen County (Attachment 55)

Written only testimony as neutral for HB2487 was submitted by the following:

Dave Trabert, Kansas Policy Institute (Attachment 56)

Eric Stafford, Kansas Chamber (Attachment 57)

Written only testimony as an opponent for HB2487 was submitted by the following:

Scott Schneider, Kansas Restaurant & Hospitality Association (Attachment 58)

John Donley, Kansas Farm Bureau (Attachment 59)

Chairperson Smith closed the hearing on HB2487.

Meeting adjourned at 5:00 p.m.