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 18, 2019


The Honorable Steven Johnson, Chairperson
House Committee on Taxation
Statehouse, Room 185-N
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Fiscal Note for HB 2398 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2398 is
respectfully submitted to your committee.
HB 2398 would require the Legislature to either repeal or suspend an existing exemption
of equal or greater fiscal liability in order to enact any new sales tax exemption that goes into effect
on or after July 1, 2019.
The Department of Revenue indicates HB 2398 would not have a direct fiscal effect on
state or local sales tax revenues or make any changes to an existing sales tax exemption. However,
the bill creates the possibility of future increased state and local sales tax collections if a new sales
tax exemption is enacted that would have a lower fiscal effect than the corresponding exemption
that is repealed or suspended.


Sincerely,

Larry L. Campbell
Director of the Budget

cc: Chardae Caine, League of Municipalities
Jay Hall, Association of Counties
Lynn Robinson, Department of Revenue
Ben Cleeves, Transportation