The Kansas Legislature began the 2022 session last week. It is mostly business as usual compared to the last two years of extensive COVID-19 precautions. After cuts to most agency budgets during last year’s session and concern about the length of the economic recovery, state revenues have spiked. For Fiscal Year (FY) 2022, revenues have exceeded projections by $1.3 billion, and the state is expected to have a staggering $2.8 billion general fund ending balance by the end of FY 2022. The Capitol is flush with ideas about how to spend, or give back, the extra revenue. Couple this with it being a year when legislative districts must be redrawn after the last census and a gubernatorial election year, a combination that occurs only once every 20 years, and it should be an interesting session.
Wildfire Sales Tax Exemption – The House Committee on Taxation held a hearing on HB 2464, a bill that would grant a sales tax exemption for materials and services purchased to replace or rebuild fence on land devoted to agricultural use following the wildfires on December 15, and all wildfires moving forward. An identical bill, SB 318, had a hearing in the Senate Committee on Assessment and Taxation. KLA testified in support of both bills. SB 318 was amended in committee to also allow county commissions the authority to abate property taxes on buildings and agriculture improvements of property destroyed or substantially destroyed by natural disasters. SB 318 was approved as amended by the committee and awaits action by the full Senate.
Members can stay up-to-date on what’s happening during the 2022 legislative session by reading the KLA newsletter or following @newsfromKLA on Twitter or Facebook and the hashtag #KLAAtTheCapitol.