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Minutes for HB2794 - Committee on Taxation
Short Title
Providing a sales tax exemption for purchases of personal property and services, sales of personal property and purchases by contractors for not-for-profit animal shelters and rescue network managers licensed under the Kansas pet animal act.
Minutes Content for Tue, Feb 20, 2024
Chairperson Smith opened the hearing for HB2794.
Mr. Siebers provided an overview for HB2794 that would provide a sales tax exemption for all sales of tangible personal property or services purchased by an animal shelter licensed under the Kansas pet animal act and is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code or purchased by a rescue network manager on behalf of a not-for-profit organization that is a rescue network licensed under the Kansas pet animal act and is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of furthering such organization's mission, including, but not limited to, feeding, housing and providing veterinary and other care to homeless and abandoned pets, finding homes for abandoned pets, offering spay and neuter clinics, educational programs and other measures to address pet overpopulation in Kansas. (Attachment 23) Mr. Siebers stood for questions from Committee members.
Kathleen Smith provided an overview on the fiscal note for HB2794 stating the bill would decrease state revenues by $700,000 in FY2025. Of that total, the State General Fund is estimated to decrease by $600,000 in FY2025, while the State Highway Fund is estimated to decrease by $100,000 in FY2025. The fiscal effect to state revenues for FY2026 would be $800,000. She noted to formulate the estimates, the Department of Revenue reviewed data from the Department of Agriculture which reports that there are 289 animal shelters and rescue networks licensed in the state. Of that amount, approximately 144 are either licensed as a for-profit business or are already exempt from sales tax as a function of a local government. Ms. Smith stood for questions from Committee members.
Proponents:
Jasmine Kyle, Director of the Southeast Kansas Humane Society, testified as a proponent for HB2794 noting by exempting shelters and rescues from sales tax, the State of Kansas can help ensure that more of the shelter funds can go directly towards its animals, community education, and support for supplies. Passage of this bill provides a direct line of support for its state's animal shelters and rescues. (Attachment 24) Ms. Kyle stood for questions from Committee members.
Reily Goyne, Deputy Director, Kansas Pet Advocates, testified as a proponent for HB2794 that will exempt licensed, nonprofit shelters and rescues from state sales tax. Ms. Goyne provided a list of nearly three dozen shelters and rescues listed in her testimony that support HB2794. Private, nonprofit shelters and rescues provide essential services to our communities, but receive little public funding and rely on charitable donations to operate. Kansas Pet Advocates urge the passage of HB2794 to help shelters and rescues for our community. (Attachment 25) Ms. Goyne stood for questions from Committee members.
Written only testimony was submitted by the following as proponents for HB2794:
Christy Fischer, Executive Director, Wichita Animal Action League, (Attachment 26)
Aaron Walker, President & Chief Executive Officer, Kansas Humane Society of Wichita, Kansas, (Attachment 27)
Neutral:
Written only testimony was submitted as neutral to HB2794 by Spencer Duncan, Government Affairs Director, League of Kansas Municipalities. (Attachment 28)
There were no conferees in opposition to HB2794.
Chairperson Smith closed the hearing for HB2794 and adjourned the meeting.
