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Minutes for HB2719 - Committee on Taxation
Short Title
Providing that the telecommunications machinery and equipment property tax exemption includes inventory and work-in-progress machinery and equipment.
Minutes Content for Wed, Mar 2, 2022
Chairperson Smith opened the hearing for HB2719.
Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2719. (Attachment 1) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2719 stating the Department of Revenue is estimating a decrease in assessed value from the exemption totaling approximately $4.8 million. Ms. Smith noted the bill would decrease property tax revenues that school districts receive through the state's uniform mill levy by $96,600 and to the educational building fund of $4,800 and the state institutions building fund of $2,400.
In response to a question, Kevin Suelter, Property Valuation, KDOR, noted to arrive at the dollar amount of the estimate, the department took all materials and supplies, which are a fixed asset, and took total capital work in progress (CWIP) and worked through the formula to determine the drop in the taxable assessed value.
Proponents:
Daniel Friesen, Managing Partner/CIO, IdeaTek, testified as a proponent for HB2719 stating the company is a fiber broadband builder in the State of Kansas. He noted this bill is not an expansion of a tax exemption but a technical correction to the original intent of the original bill. KSA 79-224 is the statue that Mr. Friesen suggested to amend its sister statue KSA 79-223 which is a much boarder statute that exempts all purchases of new equipment from personal property tax across all industries. (Attachment 2) Mr. Friesen stood for questions from Committee members.
Written testimony as a proponent for HB2719 was submitted by the following:
Michael J. Ruffin, Regional Vice President, AT&T, (Attachment 3)
Chairperson Smith closed the hearing on HB2719.
