Vice Chairperson Carl Turner opened the meeting and welcomed Representative Hoye and Representative VanHouden.  Vice Chairperson Turner asked if there were any bill requests and there were none.   

Vice Chairperson Turner opened the hearing for HB2714.

Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2714 that decreases the gallonage tax on beer and cereal malt beverage from the current $0.18 per gallon to $0.06 per gallon for beer and cereal malt beverage that are manufactured and packaged within the United States. (Attachment 1)

Mr. Siebers stood for questions from the Committee.

Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2714 noting the bill would decrease gallonage tax collections on beer and cereal malt beverage that are deposited into the State General Fund by unknown amounts beginning in FY2027.  The Department did indicate $9.6 million from gallonage tax on beer and CMB in FY2025; however the Department does not have data on the portion of this tax collected on products that were manufactured and packaged within the United States to provide an estimate of the reduction.  

Ms. Smith stood for questions from the Committee.

Proponents: (Speaking before the Committee)

Adam Kazda, Director, State Government Affairs, Anheuser-Busch, testified as a proponent for HB2714 noting the bill would reduce the Kansas excise tax on beer produced by American breweries from $0.18 per gallon to $0.06 per gallon, providing a critical boost to the American industry.  (Attachment 2)

Scott Schneider, Kansas Restaurant & Hospitality Association, testified as a proponent for HB2714 that modifies the gallonage tax structure contained in K.S.A. 41-501 by lowering the tax on beer and cereal malt beverages manufactured and packaged within the United States from $0.18 per gallon to $0.06 per gallon. (Attachment 3)

Chuck Magerl, Free State Brewing Company, Lawrence, Kansas, testified as a proponent for HB2714 that would provide meaningful tax relief for small and independent brewers.  State excise taxes represent a significant cost for small breweries that operate on tight margins.  The provisions in HB2714 would help level the playing field for small producers, allowing breweries to reinvest in their facilities, employees and communities.  (Attachment 4)

The conferees stood for questions from the Committee.

Written only proponent testimony for HB2714 was submitted by the following:

Steve Beykirch, Eagle Beverage Corporation, Frontenac, Kansas, (Attachment 5)

Tanner Tempel, Americans for Prosperity (Attachment 6)

Taylor Williamson, Kansas Corn Growers Association, (Attachment 7)

Opponent: (Speaking before the Committee)

Tyler Rudd, Central States Counsel, Wine Institute, testified by Webex as an opponent for HB2714 that would create a preferential tax category for beer and cereal malt beverages produced within the United States of $0.6 per barrel while leaving the current rate of $0.18 per barrel for foreign import beer. (Attachment 8)

Mr. Rudd stood for questions from Committee members.

Written only opponent testimony for HB2714 was submitted by R. E. "Tuck" Duncan, Kansas Wine & Spirits Wholesalers Association, (Attachment 9)

There being no further conferees, Vice Chairperson Turner closed the hearing for HB2714.