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


March 3, 2021


The Honorable Adam Smith, Chairperson
House Committee on Taxation
Statehouse, Room 185A-N
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2413 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2413 is
respectfully submitted to your committee.
HB 2413 would provide a sales tax exemption for the Friends of Hospice of Jefferson
County beginning on July 1, 2021, for the purpose of supporting the Jefferson County Hospice
Agency in end-of-life care for Jefferson County families, friends, and neighbors. The bill would
also exempt from sales tax all sales of entry or participation fees, charges, or tickets for the
organization’s fundraising event.

Estimated State Fiscal Effect
FY 2021 FY 2021 FY 2022 FY 2022
SGF All Funds SGF All Funds
Revenue -- -- ($3,600) ($4,300)
Expenditure -- -- $1,200 $1,200
FTE Pos. -- -- -- --
The Department of Revenue estimates that HB 2413 would decrease state revenues by
$4,300 in FY 2022. Of that total, the State General Fund is estimated to decrease by $3,600 in FY
2022, while the State Highway Fund is estimated to decrease by $700 in FY 2022. This bill also
is estimated to decrease local sales tax revenues by approximately $700 in FY 2022. The
Department of Revenue indicates that this bill 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 2022.
The Honorable Adam Smith, Chairperson
Page 2—HB 2413

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 2413 is not reflected in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

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

Statutes affected:
As introduced: 79-3606