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Minutes for HB2036 - Committee on Taxation
Short Title
Creating a property tax exemption for retired and disabled veterans.
Minutes Content for Mon, Jan 30, 2023
Chairperson Smith opened the hearing on HB2036.
Mr. Siebers provided an overview for HB2036 that provides a property tax exemption for homestead property of certain retired and disabled veterans. Section 1 of the bill has a schedule based on the disability rate of percent assessed for value of the homestead. A surviving spouse of a qualifying individual would also be entitled to the exemption until surviving spouse remarries.(Attachment 9) Mr. Siebers stood for questions from Committee members.
Ms. Smith provided an overview of the fiscal note for HB2036 stating the bill would decrease property tax revenues by exempting certain amounts of homestead properties assessed valuation for certain disabled veterans. She noted the state funds directly affected are the two building funds which are the educational building fund and the state institutions building fund. The estimate for HB2036 will decrease revenues to the two funds by around $570,000 in FY2025 which would be $380,000 for the educational building fund and $190,000 for the state institutions building fund. With less property tax revenue that would be available from the state's uniform mill levy to fund expenditures for school districts, the state would be required to provide an additional $7.56 million in state aid from the state general general fund through the school finance formula in FY2025. Local governments that levy a property tax would also receive less revenues which the department did not estimate. It is estimated that around 24,000 to 25,000 individuals will qualify for this new exemption with an average property tax exemption of around $1,971 in FY2025. Ms. Smith stood for questions from Committee members.
Proponents:
Representative Pat Proctor testified as a proponent for HB2036 noting veterans leave the state of Kansas to go to other states because of their tax structure and property tax incentives. He stated the Legislature voted in 2022 to fund a veterans home for northeast Kansas which will alleviate some of the problems. Most veterans who separate from the military end up with some level of disability. HB2036 would increase the number of disabled veterans eligible for property tax relief. (Attachment 10) Mr. Proctor stood for questions from Committee members.
Mike Kelly, Military Officers Association of America, testified as a proponent for HB2036 stating it recognizes the service of veterans and disabled veterans. The tax break in HB2036 is much more substantial than the tax breaks that are currently in law under the Homestead provisions and believes a more generous tax break is warranted. (Attachment 11)
James Petrik, Retired soldier, US Army, testified as a proponent for HB2036 (Attachment 12). Mr. Petrik stood for questions from Committee members.
R.W. (Dick) Miller, combat Vietnam veteran, testified as a proponent for HB2036 that will provide disabled veterans property tax relief. He stated everything is a priority except for the recognition of the disabled veterans. Mr. Miller noted a government statistic reveals our generous nation fronts more money and services to illegal immigrants than it does the American disabled veteran. (Attachment 13)
Mr. Miller spoke on behalf of Colonel John G. Dunn who is a proponent for HB2036 noting his service to America. Mr. Dunn's sacrifice was five years in a Cambodian bamboo cage and still suffers from serious health issues, injuries and lingering malaria that fosters his disability. Mr. Dunn grew up in the Midwest and now lives in Florida due to the tax structure in Kansas. (Attachment 14) Mr. Miller stood for questions from Committee members.
Harry Schwarz, Veteran Service Officer for the Veterans of Foreign Wars, testified as a proponent for HB2036. (Attachment 15)
Written testimony was submitted by the following as proponents for HB2036:
Todd Schroeder, Department Service Officer, VFW, (Attachment 16)
Douglas Oliver, Veteran of Vietnam, (Attachment17)
Geoff Poitras, Retired Army Veteran, (Attachment 18)
Lawrence Hannan, Army Veteran, (Attachment 19)
Ronald H. Jones, disabled Vietnam Veteran, (Attachment 20)
David O. Reynolds, U.S. Army Veteran, (Attachment 21)
William J. Douglass, Veteran U.S. Army, (Attachment 22)
Jennifer Barbour, U.S. Air Force Veteran, (Attachment 23)
Santa Fe Trail VFW 846, (Attachment 24)
Eric Bishop, Disabled Veteran, (Attachment 25)
Jay Hall, Kansas Association of Counties, (Attachment 26)
Nicholas Anthony Morris, Disabled Veteran, (Attachment 27)
Lucas Arnold, Manager, Aftermarket Logistics (Attachment 28)
Opponent:
Spencer Duncan, League of Kansas Municipalities, submitted testimony as an opponent to HB2036. (Attachment 29)
Chairperson Smith closed the hearing on HB2036.
Chairperson Smith announced the House Taxation Committee meeting scheduled for Wednesday February 1, 2023 is canceled and the hearing for HB2108 will be scheduled for Thursday, February 2, 2023. The Wednesday, February 1 meeting is canceled due to the Center for Economic Development Business Research hosted by Wichita State 2023 Kansas Economic Outlook Conference.
Chairperson Smith adjourned the meeting at 4:48 p.m.
