SESSION OF 2019
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2160
As Amended by Senate Committee on
Assessment and Taxation
HB 2160, as amended, would make a number of
changes to local sales tax authorization statutes and create a
sales tax exemption for certain coins and bullion.
Local Sales Tax Authority
The bill would increase the maximum local sales tax rate
that could be imposed by Thomas County from 1.50 percent
to 1.75 percent, provided all taxes levied in excess of 1.00
percent remain earmarked for financing a courthouse, jail, law
enforcement center, or other county administrative facility.
Any specially earmarked tax imposed by the bill would be
required to sunset when the project costs had been fully paid.
An election would be required for an increase in the current
Thomas County sales tax, which is 1.50 percent.
The bill would extend from five years to ten years the
sunset on any 0.5 percent tax imposed by Russell County for
economic development initiatives or public infrastructure
The bill would renew existing sales tax authority for
Jackson County to impose, subject to voter approval, a
countywide sales tax of 0.4 percent to finance public
infrastructure projects. As under continuing law, any such tax
imposed would sunset after seven years.
*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
The bill would allow Dickinson County to impose, subject
to voter approval, a countywide sales tax of 0.5 percent to
finance roadway construction and improvement. This
authorization would require any such tax imposed to sunset
after ten years, instead of five years as in current law.
The bill would extend the authority of Wabaunsee
County to impose a 0.5 percent retail sales tax for an
additional period not to exceed 15 years, subject to voter
Sales Tax Exemption
The bill would provide a sales tax exemption for all sales
of gold or silver coins and gold, silver, platinum, or palladium
The bill was introduced by the House Committee on
Taxation at the request of Representative Highland on behalf
In the House Committee hearing on February 13, 2019,
Representative Highland testified as a proponent.
Representatives from the Kansas Association of Counties
and the Wabaunsee County Commission District 1 also
testified as proponents, stating the current authority of
Wabaunsee to impose the 0.5 percent additional retail sales
tax would sunset in 2022 and the bill would authorize
Wabaunsee County to hold an election extending the retail
sales tax. No neutral or opponent testimony was provided.
The House Committee amended the bill to remove a
provision authorizing Wabaunsee County to conduct
subsequent elections to extend the 0.5 percent retail sales
tax at intervals not exceeding 15 years.
The Senate Committee amended the bill to insert the
contents of House Bill 2033, as amended by the House
Committee of the Whole, except the provision concerning
Finney County and to insert the provision concerning the
sales tax exemption for coins and bullion.
On January 24, 2019, the House Committee on Taxation
amended HB 2033 by inserting the contents of HB 2040 into
HB 2033 and removing redundant sections. The following
provides the backgrounds of both bills.
HB 2033 was introduced by Representative Adam Smith
on January 15, 2019.
In a hearing before the House Committee on Taxation
on January 23, 2019, Representative Adam Smith testified as
a proponent of HB 2033. He spoke to Thomas County’s need
for a new consolidated Criminal Justice Center to house the
Courts, the County Attorney, the Sheriff’s Office, the jail, and
the Colby Police Department. He noted that a November
2017 Thomas County election approved a one-half cent
increase in sales tax and that the bill would levy an additional
one-fourth cent increase. Representatives from the Kansas
Association of Realtors and Thomas County also testified as
proponents. Representative Awerkamp, Representative
Waymaster, and a representative of Dickinson County
provided written-only proponent testimony. No neutral or
opponent testimony was provided.
The House Committee of the Whole adopted a technical
amendment to make changes to the bill’s introductory clause.
HB 2040 was introduced by Representative Hineman on
the behalf of Garden City and Finney County on January 16,
In a hearing before the House Committee on Taxation
on January 23, 2019, representatives from Finney County,
Garden City, and the Kansas Association of Counties testified
as proponents of HB 2040. The representative from Finney
County testified the bill would approve a November 2017 joint
Finney County and Garden City election approving a 0.3
percent increase in sales tax for 15 years. The representative
noted Finney County is the retail hub of southwest Kansas.
No neutral or opponent testimony was provided.
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue (Department) indicates the bill would affect local
sales tax collections and would have no fiscal affect on state
revenues. The Department also indicates costs associated
with implementation of the bill could be absorbed within the
Department’s existing resources.
A revised fiscal note on the bill as amended by the
Senate Committee indicated enactment of the bill would
result in an annual reduction of state revenues of $7,840,
including $6,574 from the State General Fund.
4- 2160Statutes affected:
As introduced: 12-187
As Amended by House Committee: 12-187
As Amended by Senate Committee: 12-187, 12-189, 79-3606