SESSION OF 1998



SUPPLEMENTAL NOTE ON SENATE BILL NO. 250



As Amended by Senate Committee of the Whole





Brief(1)



S.B. 250, as amended, adds a definition of "educational institution" to the Kansas Retailers' Sales Tax Act. "Educational institution" would include nonprofit schools, colleges, and universities that offer accredited postsecondary education, including a group of educational institutions that operates exclusively for an educational purpose, endowment associations and foundations, nonprofit athletic trusts and foundations, and nonprofit research trust funds and foundations.





Background



This bill was requested by and supported by the Department of Revenue. A representative of the Kansas Board of Regents also spoke in support of the bill. There were no opponents.



1997 Amendment. In 1997, the Senate Committee amended the bill to clarify that the educational institutions must be nonprofit and to add trusts and foundations for student unions and research.



According to the revised estimates of the Department of Revenue, the 1997 Committee amendment adding student union trusts and foundations and research foundations would reduce sales tax receipts by approximately $200,000 annually.



The fiscal effect by fund and year for the bill as amended in 1997 was estimated as follows:



($ in Thousands)
Fiscal Year 1999

Fiscal Year 2000

SGF
SHF
TOTAL
SGF
SHF
TOTAL
S.B. 250 $ 552 $ 30 $ 582 $ 626 $ 34 $ 660
1998 Amendments. In 1998, the Senate Committee further amended the bill to remove student unions from the definition of "educational institution," and to make editorial changes.

The fiscal effect by fund and year for the bill as amended in 1998 is estimated as follows:



($ in Thousands)
Fiscal Year 1998

Fiscal Year 2000

SGF
SHF
TOTAL
SGF
SHF
TOTAL
S.B. 250 $ 400 $ 20 $ 420 $ 455 $ 25 $ 480
 The Senate Committee of the Whole amendment corrected a clerical error.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supple-mental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.