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Minutes for HB2061 - Committee on Taxation
Short Title
Providing an income tax rate of 5% for individuals and corporations, decreasing the surtax for entities subject to the privilege tax and providing that future income tax rate decreases be contingent on exceeding revenue estimates.
Minutes Content for Tue, Feb 14, 2023
Adam Siebers, Assistant Revisor, provided an overview for HB2061 that would decrease individual and corporate incomes tax rates and provide for possible additional future rate reductions. Effective for tax year 2024, the bill would decrease the rate of privilege taxes for national banking associations and state banks from 2.125 percent to 0.88 percent for net income in excess of $25,000. HB2061 would also reduce the privilege tax for trust companies and savings and loan associations from 2.125 percent to 0.96 percent for net income in excess of $25,000. (Attachment 1) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2061 estimating the bill would decrease the State General Fund revenues by $428.0 million in FY 2024, $1.452 billion in FY 2025, and $1.541 billion in FY 2026. To formulate the estimates, the Department of Revenue simulated this policy change based on actual tax return data from tax year 2020. HB2061 would require $75,950 from the State General Fund in FY 2024 to implement the bill and to modify the automated tax system. Ms. Smith stood for questions from Committee members.
Proponents:
Dave Trabert, Kansas Policy Institute, testified as a proponent for HB2061. (Attachment 2) Mr. Trabert stood for questions from Committee members.
Eric Stafford, Kansas Chamber, testified as a proponent for HB2061. (Attachment 3) Mr. Stafford stood for questions from Committee members.
Michael Austin, Americans for Prosperity, testified as a proponent for HB2061. (Attachment 4) Mr. Austin stood for questions from Committee members.
Opponents:
Emily Fetsch, Kansas Action for Children, testified as an opponent for HB2061. (Attachment 5) Ms. Fetsch stood for questions from Committee members.
Timothy Graham, Kansas NEA, testified as an opponent for HB2061. (Attachment 6) Mr. Graham stood for questions from Committee members.
John Lee, Tax Simple Center, testified as an opponent for HB2061. (Attachment 7) Mr. Lee stood for questions from Committee members.
Written testimony was submitted by the following as opponents for HB2061:
Marcus Winn, Metro Organization for Racial and Economic Equity (MORE2), (Attachment 8)
Melissa Stiehler, Resident of Topeka, (Attachment 9)
Michael Bell, President Tennessee Town Neighborhood Improvement Assn. in Central Topeka, (Attachment 10)
Erin Woods, Leawood, Kansas, (Attachment 11)
Sandra B. Katz-Sherry, Prairie Village, (Attachment 12)
Stand-Up Blue Valley Families for Our Schools, (Attachment 13)
Reverend Jeanne Koontz, Hutchinson, KS. (Attachment 14)
Leslie D. Mark, Kansas Citizen and Voter, (Attachment 15)
Amy Hill, Kansas Citizen, (Attachment 16)
Jennifer Ancell, Kansas Citizen, (Attachment 17)
Linda Schroeder, Overland Park, Kansas, (Attachment 18)
Leola Brake, Topeka, Kansas, (Attachment 19)
Judith Deedy, Game On for Kansas Schools, (Attachment 20)
LeHanna Herrmann, RN, (Attachment 21)
Rev, Emily Spearman Cannon, McPherson UMC (Attachment 22)
Sara Askew, Kansas Citizen, (Attachment 23)
Emily Meissen-Sebelius, Kansas Citizen, (Attachment 24)
Jessica Lehnherr, United Way of Kaw Valley, (Attachment 25)
Brenda Sharpe, Reach Healthcare Foundation, (Attachment 26)
ShaMecha King Sims, Historic Old Town, Citizen Advisory Council & Central Topeka Grocery Oasis, (Attachment 27)
Rabbi Moti Rieber, Kansas Interfaith Action, (Attachment 28)
Neutral:
Sean Gatewood,, KanCare Network, testified as neutral for HB2061. (Attachment 29)
Scott Rothschild, Kansas Association of School Boards (KASB), testified as neutral for HB2061. (Attachment 30) Mr. Rothschild stood for questions from Committee members.
Written testimony was submitted by Jerry Henn, USA Kansas and Kansas School Superintendents Association, as neutral to HB2061. (Attachment 31)
Chairperson Smith suspended the hearing on HB2061 to the following day.
