SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE BILL NO. 54
As Amended by Senate Committee on
Assessment and Taxation

Brief*
SB 54 would expand, beginning January 1, 2025, 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 on February 1, 2023,
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.
On January 9, 2024, the bill was withdrawn from the
Senate Calendar and rereferred to the Senate Committee on
Assessment and Taxation.
Following discussion on February 8, 2024, the Senate
Committee amended the bill to replace all referenced dates of
June 30, 2024, with December 31, 2024, and July 1, 2024,
with January 1, 2025, and to make technical changes.

Fiscal Information
A revised fiscal note on the amended bill was not
immediately available.
Any fiscal effect associated with the bill is not reflected
in The FY 2025 Governor’s Budget Report.
Taxation; sales tax; utilities


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Statutes affected:
As introduced: 12-189a, 79-3603, 79-3603d
As Amended by Senate Committee: 12-189a, 79-3603, 79-3603d