Taxation committee hears briefing on HCR 5,014 to create ‘freedom from taxes’ endowment

At an informational briefing of the Committee on Taxation, legislative staff and Representative-level members discussed HCR 5,014, a proposed constitutional amendment that would create a “freedom from taxes fund” and a Kansas Citizens Freedom Review Board to review and eliminate state sales and compensating-use tax exemptions. The proposal would direct revenues from eliminated exemptions into two subfunds intended to finance elimination of state-imposed property taxes and later state income and privilege taxes.

Adam Siebers, reviser for the committee, gave the technical overview, saying HCR 5,014 would amend Article 11 of the Kansas Constitution to establish the fund and the review board and to “authorize the board to review tax exemptions and approve or eliminate exemptions.” He told the committee the funds would be administered by the state treasurer and that “any expenditures from the freedom from taxes fund would be solely used for the elimination of state imposed property, income, and privilege taxes.”

The measure as described would: create two subfunds (a state property tax elimination fund and a state income and privilege tax elimination fund); require the treasurer to calculate and transfer amounts generated from eliminated exemptions into the fund; allow interest earnings to be used to substitute for the identified tax revenues when the treasurer determines the fund has sufficient projected earnings; and include a five-year sunset for exemptions approved by the citizen board unless reauthorized by the Legislature.

"I am not advocating that we pass HCR 50 14 this year," said the Speaker Pro…