SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR
HOUSE BILL NO. 2036
As Recommended by Senate Committee on
Assessment and Taxation

Brief*
Senate Sub. for HB 2036 would create a sales tax
exemption beginning January 1, 2023, for tangible personal
property and services purchased by Kansas resident
veterans who have been honorably discharged and have at
least a 50 percent permanent disability rating sustained
through military service.
Sales of motor vehicles, alcoholic beverages, tobacco
products, or electronic cigarettes would be excluded from the
exemption, as would any purchases not made for personal
use or made for the production of income.
Purchases for the benefit of such individuals or made on
behalf of such individuals would also qualify for the
exemption, which would be capped at $24,000 of taxable
sales per year per eligible person. Surviving spouses of
eligible persons would continue to be eligible for the
exemption until remarriage.
The bill would require individuals claiming the exemption
to apply to the Secretary of Revenue for a veteran exemption
identification number, which would be provided on a card the
size of a driver’s license upon the provision of information
sufficient to establish the eligibility of the individual. The bill
would require the exemption identification number or
exemption card to be presented to retailers when claiming the
exemption.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 Upon request of the Secretary of Revenue, an eligible
person would be required to provide a statement under oath
that the total sales amounts have not exceeded the amount
provided for by the bill. If the amount of exempt sales
exceeds the limit, the amount of excess sales tax would be
considered a direct sales tax liability of the eligible individual.

Background
The bill was introduced by Representatives Proctor,
Blex, Buehler, Butler, Clifford, Collins, Dodson, Ellis, Johnson,
Neelly, Thompson, and Turk.

House Committee on Taxation
In the House Committee hearing on January 30, 2023,
proponent testimony was provided by Representative
Proctor, representatives of Kansas Disabled Veterans Lobby
and Military Officers Association of America–Kansas, and a
private citizen. The proponents generally stated the bill would
provide property tax relief for disabled veterans, some of
whom may not qualify for existing residential property tax
relief programs.
Written-only proponent testimony was provided by
representatives of Aftermarket Logistics, Kansas Association
of Counties, Santa Fe Trail VFW Post 846, and VFW, and by
ten private citizens.
Written-only opponent testimony was provided by a
representative of the League of Kansas Municipalities.

House Committee of the Whole
The House Committee of the Whole amended the bill to
prevent recipients of any exemption under the bill from being
eligible for refunds under the Homestead Property Tax
Refund Act.
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Senate Committee on Assessment and Taxation
In the Senate Committee hearing starting January 16,
2024, proponent testimony was provided by Representative
Proctor, representatives of the Enlisted Association of the
National Guard of Kansas, Junction City Chamber of
Commerce, and Military Officers Association of America–
Kansas, and seven private citizens. The proponents generally
stated the bill would provide property tax relief for disabled
veterans and recommended amendments be adopted to
ensure the exemptions are not too burdensome for the most
substantially impacted counties in the state.
Written-only proponent testimony was provided by
representatives of AARP–Kansas, Geary County Board of
County Commissioners, Kansas Disabled Veterans Lobby,
Vietnam Veterans of America, and 18 private citizens.
Opponent testimony was provided by representatives of
the Leavenworth County Commission and the Riley County
Commission. The opponents generally stated the exemption
would be onerous for counties with high populations of
disabled veterans and would shift property taxes to other
taxpayers.
Written-only neutral testimony was provided by
representatives of the Kansas Association of Counties,
Kansas Policy Institute, and League of Kansas Municipalities.
The Senate Committee amended the bill to remove the
contents of the bill and insert the contents of SB 58, with
amendments described below. Background information for
SB 58 is provided below.

SB 58 (Disabled Veterans Sales Tax Exemption)
The bill was introduced by Senators Peck, Blasi,
Bowers, Claeys, Corson, Dietrich, Doll, Kloos, and Pittman.

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Senate Committee on Assessment and Taxation
In the Senate Committee hearing on March 9, 2023,
proponent testimony was provided by Senator Peck and
representatives of Military Officers Association of America–
Kansas, Southeast Kansas Veteran Providers Coalition, and
VFW Post 1186. Proponents generally stated the bill would
provide sales tax relief for disabled veterans commensurate
with what is provided in some other states.
Written-only proponent testimony was provided by three
private citizens.
The Senate Committee amended the bill to provide for
the exemption to be effective July 1, 2025; exclude sales of
alcoholic beverages, tobacco, and electronic cigarettes from
the exemption; limit the exemption sales to be used for
personal use and not for the production of income; change
the disability rating of eligible veterans from 100 percent to 50
percent or greater; and reduce the limit exempted sales from
$50,000 to $24,000 annually.

Fiscal Information
A Fiscal Note on the substitute bill was not immediately
available.
Taxation; sales tax; exemption; disabled veterans


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Statutes affected:
Enrolled: 65-163j, 65-3306, 79-5003, 65-3327, 72-5142, 79-1964, 79-1964b, 74-8768, 75-2556, 79-201x, 79-1107, 79-1108, 79-1479, 79-2988, 79-32, 79-3603, 79-3603d, 79-3620, 79-3703, 79-3710, 79-2959, 79-2964