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Committee debates expansion of machinery exemption in SB 320 and delays action for revisions

Senate Assessment and Taxation Committee · February 16, 2026

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Summary

SB 320 would expand exemption eligibility for commercial and industrial machinery and equipment acquired on or before June 30, 2006. Senators raised fiscal concerns for counties and schools, discussed adding telecommunications and railroads, and considered phased-in approaches; an amendment failed and the committee did not finalize passage, opting to revisit the bill after reviser work and turnaround.

Amelia summarized Senate Bill 320, which would expand exemption eligibility to include commercial and industrial machinery and equipment acquired or transported into the state on or before June 30, 2006 and would amend KSA 79-2-23. The exemption was described to take effect for tax year 2026.

Senator Owens urged support for the bill’s intent but warned Sedgwick County and legacy manufacturers could face a substantial fiscal “cliff.” He suggested a phased-in approach; senators discussed options including a 10% per-year phase-in, or a two-year lookback over five years. Amelia and Eddie noted constitutional and practical concerns with percentage exemptions and that additional modeling would be necessary; Eddie told the committee the railroad and telecom components add roughly 26% to the underlying 'all other property' cost in the fiscal materials John circulated to members.

A committee amendment (to address inclusion of telecommunications and railroads or other corrective language) was moved by Senator Tyson and seconded by Senator Owens, but the motion failed on voice vote. Later, Senator Schallenberger proposed reporting the bill adversely; Senator Owens offered to work with revisers after turnaround on a phased or staged amendment and bring refined language back to the committee.

The committee did not advance the bill to final favorable recommendation at this hearing and left further drafting to revisers for consideration after turnaround. No recorded roll-call tally was taken for the amendment vote; decisions were made by voice vote and subsequent committee direction to staff.