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 22, 2021

The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
Statehouse, Room 123-E
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 148 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 148 is
respectfully submitted to your committee.
SB 148 would not allow a grocery store to be included in a community improvement
district created or modified after July 1, 2021. For a community improvement district in existence
before July 1, 2021, a grocery store relocating or opening within the district would not be subject
to the additional sales tax within the community improvement district.
The Department of Revenue indicates SB 148 would have no fiscal effect on state sales tax
revenues. The Department indicates that the bill would affect only local sales tax collections in
community improvement districts. According to the Department of Revenue, reissuing sales tax
publications would cost $600 from the State General Fund in FY 2022.
The Kansas Association of Counties and the League of Kansas Municipalities indicate that
the bill would limit the tax base of community improvement districts by excluding grocery stores.
The bill has the potential to reduce the amount of revenue that local governments could generate
for a project funded by a community improvement district. This could extend the amount of time
to retire the debt for community improvement district projects or make future projects not feasible.
Any fiscal effect associated with SB 148 is not reflected in The FY 2022 Governor’s Budget
Report.

Sincerely,

Adam Proffitt
Director of the Budget
cc: Ben Cleeves, Transportation
Jay Hall, Association of Counties
Wendi Stark, League of Municipalities
Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 12-6a29