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Friends of Cedar Crest seek sales-tax exemption for donor-funded purchases
Summary
Supporters told the Committee on Taxation that House Bill 23-88 would exempt purchases and sales by the Friends of Cedar Crest Association, keeping donor dollars for the governor’s residence; the Department of Revenue estimated a small fiscal impact (approx. $3,500 in FY2026).
House Bill 23-88 would exempt purchases made by the Friends of Cedar Crest Association and sales by the association from state sales tax, proponents told the House Committee on Taxation.
Jessica Lucas, president of the Friends of Cedar Crest Association, said the nonprofit buys furnishings and other interior items for Cedar Crest — the governor’s residence — using donor funds and currently pays the 6.5% state sales tax on those purchases. "It is wild to me that Friends of Cedar Crest Association is not already on the list," Lucas said, asking lawmakers to allow donor dollars to go to residents’ needs rather than to tax remittances.
The reviser’s office described the bill as a narrowly targeted exemption to preserve, restore and enhance Cedar Crest and to encourage awareness and charitable contributions. The reviser also noted a technical statutory update would be needed to reference the current statute (reinsert K.S.A. 79-3606 language for the present bill).
Kathleen Smith of the Department of Revenue told the committee a prior estimate found the exemption would reduce state revenues by about $3,500 in fiscal year 2026 — approximately $2,900 to the general fund and $600 to the state highway fund — and that larger impacts were projected in later years. Smith said the department attempted to update that estimate by contacting the organization before the hearing but had not reached them.
During questioning, members asked whether the state already owns the property and whether governmental ownership would make the purchases tax-exempt. Lucas explained the association pays for donor-driven, discretionary items (couches, furnishings, collectible fundraising ornaments) and emphasized that the tax collection process creates a burden for a volunteer-led organization that is not a retail business.
Lucas also asked lawmakers to consider similar relief for the Eisenhower Foundation, which she said is in a comparable position. The committee closed the hearing after proponents finished; no opponents or neutral testifiers appeared on the record.
