SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 54
As Recommended by Senate Committee on
Assessment and Taxation

Brief*
SB 54 would expand, beginning July 1, 2024, the state
sales and use tax rate of zero percent currently applied to
residential and agricultural sales of gas, electricity, heat,
propane gas, liquified petroleum gas, coal, wood, and other
fuel sources for the production of heat or lighting to all such
sales.
Additionally, such sales would be added to the list of
items expressly subject to sales taxes imposed by cities and
counties.

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

Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by Representative Awerkamp and
representatives of the Citizens Utility Ratepayer Board and
Kansans for Lower Electric Rates. Proponents generally
stated the bill would provide uniformity of state taxation of
utilities sales and reduce the cost of utilities on businesses.

____________________
*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
 Written-only proponent testimony was provided by
representatives of the Kansas Agribusiness Retailers
Association, Kansas Association of Counties, Kansas
Chamber of Commerce, and Kansas Grain and Feed
Association.
No other testimony was provided.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget, the Department of Revenue indicates enactment
of the bill would reduce state receipts by $51.0 million in FY
2025, $56.2 million in FY 2026, and $56.8 million in FY 2027.
Of those amounts, $42.3 million, $46.4 million, and $46.6
million would be from the State General Fund in the
respective years. The balance of the reductions would be
from the State Highway Fund.
Any fiscal effect associated with the bill is not reflected
in The FY 2024 Governor’s Budget Report.
Taxation; sales tax; utilities


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Statutes affected:
As introduced: 12-189a, 79-3603, 79-3603d