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Minutes for HB2494 - Committee on Taxation
Short Title
Providing for sales tax exemption for DCCCA, inc.
Minutes Content for Thu, Jan 27, 2022
Vice Chairperson Les Mason opened the hearing for HB2494.
Adam Siebers, Assistant Revisor, provided an overview for HB2494 that would provide for a sales tax exemption for DCCCA. (Attachment 1)
Kathleen Smith, KDOR provided an overview on the fiscal note for HB2494 that provides a sales tax exemption for DCCCA, Inc. for the purpose of furthering the mission, vision, values, and goals of the organization. Ms. Smith indicated HB2494 would decrease state revenues by $497,800 in FY2023. Of that total, the State General Fund is estimated to decrease by $417,300 in FY2023, while the State Highway Fund is estimated to decrease by $80,500 in FY2023. Data provided by the organization shows that the organization plans two construction projects for calendar years 2022 and 2023, and estimates for those projects would reduce state retail sales tax by approximately $318,800, including $267,300 from the State General Fund and $51,500 from the State Highway Fund.
Proponent for HB2494.
Lori Alvarado, Chief Executive Officer, Douglas County Citizen Committee on Alcoholism (DCCCA) testified as a proponent for HB2494 noting the request for a sales tax exemption to further their mission. DCCCA provides family preservation services, recruits, trains and supports foster homes across the state, and works with hundreds of community coalitions to develop substance abuse and mental health preventative services. In the fiscal note provided by the Department of Revenue, DCCCA would have the ability to save $255,688 annually. This savings would allow DCCCA to provide 1,291 days of substance abuse treatment or extend four to six months in-home family preservation services to an additional forty-four families with substance abuse disorders, supporting those families while keeping their children safely at home. She noted as a registered 501(c)(3), savings realized from one-time building projects would allow DCCCA to update and expand necessary facilities at a lower cost which would allow those funds to be used for other services. (Attachment 2)
In response to questions from the Committee, Carrie Jackson, Chief Financial Officer at DCCCA stated their annual budget per year is $20.0 million noting the money comes from the Department of Children and Families, Department of Disability and Aging, Kansas Department of Health and Environment. She stated money also comes from fee-for-services that is paid for by insurance and is part of the payment process and also federal grants are received.
Vice Chairperson Les Mason closed the hearing on HB2494.
Vice Chairperson Less Mason adjourned the meeting at 4:00 p.m.
