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Minutes for HB2220 - Committee on Taxation
Short Title
Establishing a five-year property tax exemption for city, county and township property used for business incubator purposes.
Minutes Content for Thu, Feb 16, 2023
Chairperson Smith opened the hearing for HB2220.
Adam Siebers, Revisor, provided an overview on HB2220. Mr. Siebers stood for questions from Committee members. (Attachment 1)
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2220 noting the Department of Revenue does not have data on the property that would receive a property tax exemption under the provisions of the bill; therefore, a precise estimate of the amount of decreased property tax revenues and the effect on local and state revenues cannot be estimated.
Proponents:
Trisha Purdon, Kansas Department of Commerce, testified as a proponent for HB2220 noting the bill creates a mechanism to lower operation costs for small businesses and entrepreneurs. The purpose of the bill is to decrease the cost of incubator operation and tenant expenses to encourage more business startups. The intent of the bill is to provide temporary tenancy that is exempt from all property taxes for the initial five years and create a new way to support small businesses, entrepreneurship, and economic growth across Kansas. (Attachment 2) Ms. Purdon stood for questions from Committee members.
In response to a question, Ms. Purdon will provide information on the success rate of incubators in Kansas to Committee members. She noted there were approximately 25 counties that need this bill in order to fill locations in their city halls and in municipally owned buildings that are currently vacant and some have multiple spaces inside of them.
Written testimony was submitted by Spencer Duncan, League of Kansas Municipalities, as a proponent for HB2220. (Attachment 3)
Chairperson Smith closed the hearing for HB2220.
