SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 53
As Amended by Senate Committee on
Assessment and Taxation
Brief*
SB 53, as amended, would exclude from sales price, for
purposes of retail sales and compensating use taxes, the
amount of coupons issued by a manufacturer, supplier, or
distributor when the seller accepts such coupons and is
reimbursed by the manufacturer, supplier, or distributor.
The exclusion would take effect January 1, 2024.
Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Tyson.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by a private citizen, who stated the bill would
allow customers to pay sales tax on the actual amount they
pay for a product, rather than on the price without the coupon.
No other testimony was provided.
The Committee amended the bill to change the effective
date of the exclusion to January 1, 2024.
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue estimates enactment of the bill would reduce state
receipts by $2.0 million in FY 2024 and by $2.3 million in all
future fiscal years. Of that amount, $1.7 million in FY 2024
and $1.9 million in all future years would be from the State
General Fund and the balance would be from the State
Highway Fund.
While a revised fiscal note on the amended bill was not
immediately available, the amendment would reduce the
fiscal impact of the bill in FY 2024 and have no effect on the
impact in all future fiscal years.
Any fiscal effect associated with the bill is not reflected
in The FY 2024 Governor’s Budget Report.
Taxation; sales tax; exclusion; manufacturer’s coupons
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