Kansas 2025-2026 Regular Session

Kansas House Bill HB2197

Introduced
1/31/25  

Caption

Providing a sales tax exemption for purchases made by sleep in heavenly peace, inc.

Impact

Through the implementation of HB 2197, various nonprofit organizations, including those providing emergency aid, mental health support, and community services, will benefit from the removal of sales tax on their necessary purchases. This will not only lower operational costs but also allows these organizations to allocate more resources toward their programs and services. Additionally, the bill specifies procedures for obtaining exemption certificates, aimed at ensuring compliance while providing clarity for how nonprofits can utilize these tax benefits.

Summary

House Bill 2197 aims to enhance existing sales tax exemption provisions specifically for certain nonprofit organizations in Kansas. The bill outlines categories of purchases that would be exempt from sales tax, including supplies and services related to constructing, maintaining, and remodeling facilities used by designated nonprofits. This legislation highlights a focus on supporting charitable organizations by easing their financial burdens through tax exemptions, thereby promoting community service activities across the state.

Contention

However, there is some contention surrounding the fiscal implications of extending sales tax exemptions to nonprofit organizations. Critics may argue that this could lead to reduced tax revenues for the state, which might impact funding for public services. Moreover, the process of obtaining exemption certificates could also be viewed as an administrative hurdle for smaller organizations that might not have existing infrastructure in place to navigate tax exemptions.

Law_modifications

HB 2197 amends K.S.A. 2024 Supp. 79-3606, repealing existing sections to create a more streamlined approach to sales tax exemptions. This change reflects a shift in state legislation aiming to support community-focused organizations more robustly, aligning state tax policy with recent trends emphasizing the importance of nonprofit contributions to local economies and societal wellbeing.

Companion Bills

No companion bills found.

Previously Filed As

KS SB6

Providing a sales tax exemption for sales of electricity to residential premises by municipally owned or operated utilities.

KS SB8

Exempting the sale of firearms, firearms accessories, ammunition, firearm safes and firearm safety devices from the retatilers' sales tax.

KS SB2

Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS HB2004

Authorizing counties to propose an earnings tax for ballot question.

KS SB5

Authorizing counties to impose an earnings tax.

KS HB2001

Authorizing the secretary of commerce to enter into agreements with major professional sports franchises to establish STAR bond projects for a major professional sports complex, providing for additional revenue sources, expanding the powers and discretion of the secretary and making other changes to the STAR bonds financing act to facilitate such projects, limiting the secretary’s authority to approve such projects to one year unless extended by the legislative coordinating council, authorizing the Kansas development finance authority to issue STAR bonds for such projects, transferring funds under certain circumstances from the state gaming revenues fund to the attracting professional sports to Kansas fund for the fiscal year ending June 30, 2025, and, if approved by the legislative coordinating council, for the fiscal year ending June 30, 2026.

KS HB2002

Expanding medical assistance eligibility and enacting the cutting healthcare costs for all Kansans act.

KS SCR1604

Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to limit property tax valuation increases for real property and personal property mobile homes.

Similar Bills

No similar bills found.