Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


January 18, 2023


The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 22 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 22 is
respectfully submitted to your committee.
SB 22 would provide a sales tax exemption to the Johnson County Christmas Bureau
Association for the purpose of providing food, clothing, cleaning supplies, personal care items,
and other necessities to those in need and desiring assistance. The bill would also exempt sales
taxes from being collected from any tangible personal property sold by or on behalf of the
organization. The sales tax emption would begin on July 1, 2023.

Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- ($6,200) ($7,500)
Expenditure -- -- $1,200 $1,200
FTE Pos. -- -- -- --
The Department of Revenue estimates that SB 22 would decrease state revenues by $7,500
in FY 2024. Of that total, the State General Fund is estimated to decrease by $6,200 in FY 2024,
while the State Highway Fund is estimated to decrease by $1,300 in FY 2024. This bill also is
estimated to decrease local sales tax revenues by approximately $3,000 in FY 2024. The
Department of Revenue indicates that this bill would have a similar fiscal effect in future fiscal
years. According to the Department of Revenue, reissuing sales tax publications and issuing tax
entity exemption certificates would cost $1,200 from the State General Fund in FY 2024.
The Honorable Caryn Tyson, Chairperson
Page 2—SB 22

The Kansas Department of Transportation indicates that the bill would reduce state
revenues to the State Highway Fund as noted above. The Kansas Association of Counties and the
League of Kansas Municipalities indicate that the bill would provide a net reduction to local sales
tax collections that are used in part to finance local governments. Any fiscal effect associated with
SB 22 is not reflected in The FY 2024 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Lynn Robinson, Department of Revenue
Brendan Yorkey, Department of Transportation
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties


Statutes affected:
As introduced: 79-3606