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


April 17, 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 2414 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2414 is
respectfully submitted to your committee.
HB 2414 would provide a sales tax exemption for the Principle Foundation for the purpose
of promoting inspired benevolence in accordance with the teachings of Christian Science,
including administering charitable grants to Christian Scientists for needs such as rent, utilities,
transportation, and natural disaster relief and providing an avenue for charitable giving and
volunteer opportunities.

Estimated State Fiscal Effect
FY 2019 FY 2019 FY 2020 FY 2020
SGF All Funds SGF All Funds
Revenue -- -- ($1,200) ($1,430)
Expenditure -- -- $1,200 $1,200
FTE Pos. -- -- -- --
The Department of Revenue estimates that HB 2414 would decrease state revenues by
$1,430 in FY 2020. Of that total, the State General Fund is estimated to decrease by $1,200 in FY
2020, while the State Highway Fund is estimated to decrease by $230 in FY 2020. This bill also
is estimated to decrease local sales tax revenues by approximately $570 in FY 2020. The
Department of Revenue indicates that this provision would have a similar fiscal effect in future
fiscal years. According to the Department of Revenue, reissuing sales tax publications and issuing
the tax entity exemption certificate would cost $1,200 from the State General Fund in FY 2020.
The Honorable Steven Johnson, Chairperson
Page 2—HB 2414

The Kansas Department of Transportation indicates that the bill would reduce state
revenues to the State Highway Fund, as noted above. The Kansas Association of Counties and the
League of Kansas Municipalities indicate that the bill would provide a net reduction to local sales
tax collections that are used in part to finance local governments. Any fiscal effect associated with
HB 2414 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
Ben Cleeves, Transportation
Jay Hall, Association of Counties
Chardae Caine, League of Municipalities


Statutes affected:
As introduced: 79-3606