SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE BILL NO. 147
As Amended by House Committee on Taxation

Brief*
SB 147, as amended, would provide a sales tax
exemption for purchases made by nonprofit integrated
community care organizations, which would be defined by the
bill.
“Nonprofit integrated community care organization”
would be defined as any entity that is exempt from federal
income taxation pursuant to Section 501(c)(3) of the Internal
Revenue Code, certified to participate in the Medicare
program as a hospice focused on providing care to the aging
and indigent population across multiple counties, and
approved by the Kansas Department for Aging and Disability
Services to provide services under the Program of All-
Inclusive Care for the Elderly (PACE).
The bill would also provide a sales tax exemption for the
Friends of Hospice of Jefferson County for purchases made
for the purposes of providing end-of-life hospice care, and on
all sales of entry or participation fees, charges, or tickets for
the fundraising event of the organization.

Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Kloos.

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*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
http://www.kslegislature.org
Senate Committee on Assessment and Taxation
In the Senate Committee hearing on the bill, proponent
testimony was provided by a representative of Midland Care
Connection, who stated the bill would provide uniform sales
tax treatment for all PACE providers. Written-only proponent
testimony was provided by LeadingAge Kansas.
No other testimony was provided.
House Committee on Taxation
At the House Committee hearing, proponent testimony
was provided by a representative of Midland Care, who noted
the bill would provide an exemption that other PACE provider
organizations currently receive.
Written-only proponent testimony was provided by
LeadingAge Kansas.
No neutral or opponent testimony was provided.
The House Committee amended the bill to include a
sales tax exemption for Friends of Hospice of Jefferson
County (HB 2413).

HB 2413
House Committee on Taxation
In the House Committee hearing on HB 2413,
proponent testimony was provided by Representative Ellis
and a representative of the Jefferson County Hospice
Service. The proponents noted the bill would help support an
organization that provides a valuable service to residents by
offsetting the costs of sales taxes that negate much of the
benefits of fundraising activities.

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 No additional testimony was provided.

Fiscal Information

SB 147
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the Department of
Revenue indicates enactment of the bill would reduce state
revenues by $93,000 each year, which would include a
$78,000 reduction to State General Fund revenue. Any fiscal
effect associated with the bill is not reflected in The FY 2022
Governor’s Budget Report.

HB 2413
According to the fiscal note prepared by the Division of
the Budget, the Department of Revenue estimates that the
provisions of the bill, as introduced, if enacted, would
decreased state revenues by $4,300 in FY 2022, $3600 from
the State General Fund and $700 from the State Highway
Fund, with a similar fiscal effect in future fiscal years.
Taxation; sales tax; sales tax exemptions


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Statutes affected:
As introduced: 79-3602, 79-3606
As Amended by House Committee: 79-3602, 79-3606