Division of the Budget
Landon State Office Building
Phone: (785) 296-2436
900 SW Jackson Street, Room 504
Topeka, KS 66612
http://budget.kansas.gov
Adam C. Proffitt, Director
Laura Kelly, Governor
Division of the Budget
February 20, 2025
The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT:
Fiscal Note for SB 107 by Senate Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning SB 107 is
respectfully submitted to your committee.
SB 107 would provide a sales tax exemption for disposable and reusable period products,
diapers, and incontinence products, beginning on July 1, 2025. The bill includes definitions for
period products, diapers, and incontinence products.
Estimated State Fiscal Effect
FY 2025
FY 2026
FY 2027
Expenditures
State General Fund
--
$1,340
--
Fee Fund(s)
--
--
--
Federal Fund
--
--
--
Total Expenditures
--
$1,340
--
Revenues
State General Fund
--
($6,600,000)
($7,100,000)
Fee Fund(s)
--
(1,400,000)
(1,500,000)
Federal Fund
--
--
--
Total Revenues
--
($8,000,000)
($8,600,000)
FTE Positions
--
--
--
The Honorable Caryn Tyson, Chairperson
Page 2—SB 107
The Department of Revenue estimates that SB 107 would decrease state revenues by $8.0
million in FY 2026. Of that total, State General Fund revenues are estimated to decrease by $6.6
million, while State Highway Fund revenues are estimated to decrease by $1.4 million. The
Department notes that its FY 2026 estimate reflects a one-month lag in collections that occurs
whenever a sales tax change is implemented. The bill is expected to decrease local sales tax
revenues; however, a specific estimate of this reduction was not calculated by the Department of
Revenue. The fiscal effect to state revenues during subsequent years would be as follows:
FY 2027
FY 2028
FY 2029
FY 2030
State General Fund
($7,100,000)
($7,000,000)
($7,000,000)
($7,000,000)
State Highway Fund
(1,500,000)
(1,500,000)
(1,500,000)
(1,500,000)
($8,600,000)
($8,500,000)
($8,500,000)
($8,500,000)
To formulate these estimates, the Department of Revenue reviewed data from the U.S.
Bureau of Labor Statistics Consumer Expenditure Survey and the Kansas Department of Health
and Environment. According to the Department of Revenue, reissuing sales tax publications and
revising forms would cost $1,340 from the State General Fund in FY 2026.
The Kansas Department of Transportation (KDOT) indicates that the bill would reduce
state revenues to the State Highway Fund as noted above. KDOT indicates that when the state
receives fewer State Highway Fund dollars, it may be required to make corresponding reductions
to planned expenditures for projects funded under the comprehensive transportation plan. Any
fiscal effect associated with SB 107 is not reflected in
The FY 2026 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. The bill also has the potential to reduce revenues that are pledged to repay
STAR bond projects; however, it is unknown what impact this bill would have on the viability of
those projects.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue
Jay Hall, Kansas Association of Counties
Wendi Stark, League of Kansas Municipalities
Brendan Yorkey, Department of Transportation