Bill Summary – FastDemocracy

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

                                                   February 6, 2023


          The Honorable Adam Smith, Chairperson
          House Committee on Taxation
          300 SW 10th Avenue, Room 346-S
          Topeka, Kansas 66612
          Dear Representative Smith:
                    SUBJECT:      Fiscal Note for HB 2137 by House Committee on Taxation
                  In accordance with KSA 75-3715a, the following fiscal note concerning HB 2137 is
          respectfully submitted to your committee.
                   HB 2137 allows taxing subdivisions to send notices required to exceed the revenue neutral
          rate if the county clerk fails to send the notice by September 1st. The county clerk would be
          required to provide the taxpayer information required for the notice to each taxing subdivision that
          intends to send the notice. The taxing subdivision would be reimbursed by the county clerk for
          the costs of printing and postage for sending the notice, and any costs and attorney fees required
          to obtain from the county clerk any taxpayer information necessary for the notices. The county
          clerk would not be able to request reimbursement from the Department of Revenue’s Taxpayer
          Notification Costs Fund for those costs.
                 The Department of Revenue indicates that HB 2137 has the potential to reduce the State
          General Fund transfer to the Taxpayer Notification Costs Fund that is used to reimburse printing
          and postage costs for counties to send out the revenue neutral rate notice. However, it is unknown
          how frequently a revenue neutral rate notice would be sent out by a taxing subdivision that would
          not qualify for state reimbursement to quantify any savings to the State General Fund.
                The Kansas Association of Counties indicates the bill has the potential to increase costs by
          unknown amounts for counties. Any fiscal effect associated with HB 2137 is not reflected in The
          FY 2024 Governor’s Budget Report.


                                                               Sincerely,

                                                               Adam Proffitt
                                                               Director of the Budget
          cc: Lynn Robinson, Department of Revenue
              Wendi Stark, League of Kansas Municipalities
              Jay Hall, Kansas Association of Counties
Statutes affected: 
As introduced: 79-2988, 79-2989