SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2106
As Amended by Senate Committee on
Assessment and Taxation

Brief*
HB 2106, as amended, would provide a sales tax
exemption for certain purchases related to
telecommunications services and would provide for a sales
tax price reduction in certain cases of non-simultaneous
motor vehicle transactions.

Telecommunications Service Sales Tax Exemption
The bill would create a sales tax exemption for the
purchase of equipment, machinery, or other infrastructure
purchased for use in the provision of internet access service,
telecommunications service, or video service and for the
purchase of repair, maintenance, and installation services
purchased by providers in the provision of such internet
access service, telecommunications service, or video service.
The exemption would expire on July 1, 2028.

Motor Vehicle Sales Price Deduction
The bill would provide, for purposes of retail sales and
compensating use tax, for a deduction from the sales price of
the purchase of a new or used motor vehicle in the amount of
the proceeds from the sale of a used motor vehicle sold by
the purchaser within 90 days before or after the purchase. If

____________________
*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
proceeds from the sale exceeded the purchase price, the
purchaser would not owe any sales or use tax.
The deduction would apply to any sales of used motor
vehicles on or after January 1, 2024.
Individuals would qualify for the deduction by either
providing a completed bill of sale to the county treasurer
when registering the purchased vehicle or by applying to the
Department of Revenue for a refund within three years of the
date of the purchase of the replacement vehicle.
The deduction would be permitted only if the taxpayer
claiming the deduction provides a copy of the required bill of
sale on the Department of Revenue TR-312 form, and the
information matches the information entered in the
assignment of title on the back of the certificate of title.

Background
The bill was introduced by the House Committee on
Taxation at the request of a representative of AT&T.

House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by representatives of AT&T, Brightspeed, and
Kansas Cable Telecommunications Association. The
proponents generally stated the bill would enable them to
maximize the use of recent state and federal assistance for
broadband infrastructure. Written-only proponent testimony
was provided by representatives of the Kansas Chamber of
Commerce, T-Mobile, and WANRack.
Opponent testimony was provided by a representative
of the League of Kansas Municipalities, generally stating the
exemption would erode the local tax base and reduce the
amount of sales tax revenues to local governments.

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 No other testimony was provided.

House Committee of the Whole
The House Committee of the Whole amended the bill to
insert the July 1, 2028, expiration date of the exemption.

Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by representatives of AT&T and Brightspeed.
The proponents generally stated the bill would enable them to
maximize the use of recent state and federal assistance for
broadband infrastructure.
Written-only proponent testimony was provided by
representatives of Ideatek, Kansas Cable
Telecommunications Association, Kansas Chamber of
Commerce, T-Mobile, Verizon, and WANRack.
Written-only opponent testimony was provided by a
representative of the League of Kansas Municipalities.
The Senate Committee amended the bill to insert the
contents related to the motor vehicle sales price deduction,
which are similar to the contents of HB 2229.

HB 2229 (Motor Vehicle Sales Price Deduction)
The bill was introduced by Representatives Turner and
Resman.
House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by Representative Turner, who stated the bill
would afford sales tax treatment to private motor vehicle

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transactions completed within 180 days that is currently
provided to simultaneous commercial transactions. Written-
only proponent testimony was provided by two private
citizens.
Neutral testimony was provided by a representative of
the Kansas Automobile Dealers Association.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, neutral testimony was
provided by a representative of the Kansas Automobile
Dealers Association.
No other testimony was provided.

Fiscal Information
According to the Department of Revenue, enactment of
the bill is expected to have the following impact on state
receipts:
(Dollars in Millions)
FY 2024 FY 2025 FY 2026
Telecommunications Exemption $ (13.9) $ (14.0) $ (14.0)
Motor Vehicles Sales Tax Price Deduction (1.5) (1.5) (1.5)
Subtotal – State General Fund $ (15.4) $ (15.5) $ (15.5)
Telecommunications Exemption $ (2.9) $ (3.0) $ (3.1)
Motor Vehicles Sales Tax Price Deduction (0.3) (0.3) (0.3)
Subtotal – State Highway Fund $ (3.2) $ (3.3) $ (3.4)
Total All Funds $ (18.6) $ (18.8) $ (18.9)

The provisions of the bill would have additional impacts
on local sales tax receipts. Any fiscal effect associated with
the bill is not reflected in The FY 2024 Governor’s Budget
Report.
Taxation; sales tax; exemptions; communications; broadband; motor vehicles

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Statutes affected:
As introduced: 79-3606, 79-3602, 12-2022
{As Amended by House Committee of the Whole}: 79-3606, 12-2022
As Amended by Senate Committee: 12-199, 79-3606