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Minutes for HB2636 - Committee on Taxation
Short Title
Including homestead renters as eligible to participate in certain homestead property tax refund claims.
Minutes Content for Thu, Feb 15, 2024
Chairperson Smith opened the hearing for HB2636.
Adam Siebers provided an overview for HB2636 that provides that individuals that rent would be eligible for the Homestead Property Tax Refund Act that provides claims under the original Homestead program. (Attachment 7)
Kathleen Smith provided an overview for the fiscal note for HB2636 that would decrease the State General Fund revenues by approximately $14.1 million in FY2025, FY2026 and FY2027. To formulate the estimates, census data was reviewed for population, and the past program that was in place in 2012 and going back.
Proponents:
Representative Stephanie Sawyer-Clayton, 19th District, testified as a proponent for HB2636 noting the bill reinstates the ability for home renters to claim 15.0 percent income tax deduction based on the amount of rent paid when ad valorem taxes were levied in a given year. She stated one of her intentions for this bill is how tax policy might possibly drive where people choose to live noting Missouri and Colorado have similar programs. (Attachment 8) Ms. Clayton responded to questions from Committee members.
In response to a question, Kathleen Smith stated there was an actual form which spelled out the amount of rent a tenant paid and they would receive a percentage of that amount. Ms. Smith stated the Kansas Department of Revenue had to verify the rent paid was actual and correct. Ms. Smith will provide the old forms and supply to Committee members for their review.
Adrienne Olejnik, Vice President, Kansas Action for Children testified as a proponent for HB2636 stating this is a policy change that Kansas Action for Children has been advocating for a decade. Restoring renters the Homestead Property Tax Refund program is a policy choice to help families who are struggling to afford housing. She noted the most pressing topic is the ever increasing burden of property tax on too many Kansans. Renters are not immune to the increasing burden of property taxes, the owners of those properties pass on the increased costs to their tenants The circuit breaker in HB2636 can provide more meaningful relief at a smaller cost by targeting relief dollars to those who need it the most. (Attachment 9) Ms. Olejnik responded to questions from Committee members.
Written testimony was submitted by the following as proponents to HB2636:
Martha Smith, Kansas Manufactured Housing Association, (Attachment 10)
Kristy Baughman, Executive Director, United Community Services of Johnson County, (Attachment 11)
Robert Gibson, Health Forward Foundation, (Attachment 12)
Opponent:
Written testimony was submitted by Kelly B. Arnold, Sedgwick County Clerk as an opponent to HB2636.(Attachment 13)
There were no conferees that were neutral to HB2636.
Chairperson Smith closed the hearing on HB2636.
Chairperson Smith returned to the order of business for bill requests.
Chairperson Smith requested a bill be introduced on behalf of the Revisor's Office concerning the open records exceptions in statute that is done every four or five years (24-rs-3095). Without objection, the bill was accepted for introduction by the Committee.
There being no further business, Chairperson Smith adjourned the meeting.
