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Tax committee discusses proposed sales-tax exemption for Cent Topeka; schedules follow-up review
Summary
The Committee on Taxation discussed adding a sales-tax exemption for a Topeka nonprofit (referred to in the record as "Cent" or "SENT") to bill 02/1931, received fiscal estimates and agreed to meet the next morning for further review; no formal action was taken.
The Committee on Taxation discussed a proposed sales-tax exemption for a Topeka nonprofit during a late-night session and agreed to reconvene the following morning to review language and fiscal impacts, but took no formal vote.
Committee members and proponents focused on using bill 02/1931 as the vehicle after lawmakers concluded bill 02/1975 could not be amended due to joint rules. An unnamed proponent asked the committee to consider provisions in 02/1931 and to add a "single sales tax" provision and a sales-tax exemption for the Topeka organization mentioned in testimony.
Eddie, a committee fiscal staff member, provided an estimate of the potential fiscal impact. "The annualized reduction for it would be $97,500 all funds, $80,000 of that SGF, $17,500 highway fund," Eddie said. He also said a proposed amendment that included project-exemption certificates for one-time capital projects planned over two years would reduce revenues by an estimated $228,000 all funds — $187,000 to the State General Fund and $41,000 to the highway fund — with that larger reduction split across two years.
Committee members discussed procedural constraints. One member noted the joint rules limit consideration of items that have not passed both chambers, meaning the committee could not simply suspend rules to advance changes to 02/1975. The committee chair agreed to take time to review and to meet the following morning at about 11 a.m. to continue the discussion.
No motion was made on the exemption during the recorded discussion, and no formal vote was taken. The committee scheduled the follow-up review and asked staff to provide additional information and documentation about the organization referenced in testimony and the proposed amendment language for 02/1931.
The discussion included concern for how the exemption would affect specific populations mentioned in testimony; the unnamed proponent acknowledged committee members' "heartburn with the seniors and the disabled vet" and urged consideration of a single-factor provision already passed by the committee. The committee paused the matter for further review rather than taking immediate action.
The committee is expected to resume consideration at the beginning of the next day's session to review the bill language, amendment options and the fiscal note provided by staff.
