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 20, 2023


The Honorable Adam Smith, Chairperson
House Committee on Taxation
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2306 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2306 is
respectfully submitted to your committee.
HB 2306 would provide a sales tax exemption on all tangible personal property or services
purchased by Kansas Suicide Prevention HQ, Inc. for the purpose of bringing suicide prevention
training and awareness to communities across the state. The sales tax emption would begin on
July 1, 2023.

Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- ($35,000) ($42,000)
Expenditure -- -- $1,200 $1,200
FTE Pos. -- -- -- --
The Department of Revenue estimates that HB 2306 would decrease state revenues by
$42,000 in FY 2024. Of that total, the State General Fund is estimated to decrease by $35,000 in
FY 2024, while the State Highway Fund is estimated to decrease by $7,000 in FY 2024. This bill
also is estimated to decrease local sales tax revenues by approximately $18,000 in FY 2024. 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 tax
entity exemption certificates would cost $1,200 from the State General Fund in FY 2024.
The Honorable Adam Smith, Chairperson
Page 2—HB 2306

The Kansas Department of Transportation indicates that the bill would reduce state
revenues to the State Highway Fund as noted above. Any fiscal effect associated with HB 2306
is not reflected in The FY 2024 Governor’s Budget Report.
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.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Lynn Robinson, Department of Revenue
Brendan Yorkey, Department of Transportation
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties


Statutes affected:
As introduced: 79-3606