Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


March 4, 2019


The Honorable Bud Estes, Chairperson
Senate Committee on Federal and State Affairs
Statehouse, Room 136-E
Topeka, Kansas 66612
Dear Senator Estes:
SUBJECT: Fiscal Note for SB 207 by Senate Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning SB 207 is
respectfully submitted to your committee.
SB 207 would exempt licensed microbreweries and microdistilleries from paying the liquor
enforcement tax on alcoholic liquor that they manufacture that is transferred to their licensed club
or drinking establishment. The bill also removes the requirement that microbreweries and
microdistilleries sell their product to their licensed club or drinking establishment.
The Department of Revenue estimates that SB 207 would decrease liquor enforcement tax
collections that are deposited in the State General Fund starting in FY 2020. However, the
Department of Revenue does not have data on current microbreweries and microdistilleries that
are or are not paying the liquor enforcement tax on alcoholic liquor that they manufacture to
provide a precise estimate of the fiscal effect. Any fiscal effect associated with HB 207 is not
reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget

cc: Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 41-354, 41-308b