Kansas 2024 1st Special Session

Kansas Senate Bill SB6

Introduced
6/18/24  

Caption

Providing a sales tax exemption for sales of electricity to residential premises by municipally owned or operated utilities.

Impact

The implementation of SB6 would amend existing statutes, effectively changing how sales taxes are applied to the services provided by municipal utilities across Kansas. If approved, this bill would remove the sales tax burden on residents receiving electricity from these municipal entities, potentially leading to lower monthly utility bills. This change is seen by proponents as a means to improve accessibility to essential services for residents, particularly those living in lower-income households who are disproportionately affected by utility costs.

Summary

Senate Bill No. 6 (SB6) proposes a significant amendment to the current tax regulations in Kansas regarding the sale of electricity. This bill specifically aims to establish an exemption from sales tax for electricity provided to residential premises by municipally owned or operated utilities. The rationale behind this bill is that electricity is considered a fundamental necessity for modern living, and providing exemptions could alleviate some of the financial pressure on residents.

Conclusion

Overall, SB6 reflects an effort to enhance the affordability of essential utilities for residents in Kansas. While it has the potential for positive impacts on residents' financial well-being, a careful consideration of its economic implications for local government funding remains critical for sustainable governance.

Contention

While some stakeholders support the bill for its potential financial relief to residents, others raise concerns about the implications of such a tax exemption on municipal revenue streams. Critics argue that this could lead to financial strain on local governments that rely on sales taxes as a significant portion of their income. They worry that the reduction in revenue could impact public services and infrastructure maintenance negatively. Thus, the bill might stir debate regarding the balance between supporting residents and maintaining adequate municipal funding.

Companion Bills

No companion bills found.

Similar Bills

KS SB169

House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS HB2773

Providing a sales tax exemption for certain purchases by the boys' and girls' club of Topeka.

KS SB515

Providing a sales tax exemption for the Dane G. Hansen foundation.

KS SB26

Providing a sales tax exemption for certain purchases by bowling centers.

KS SB454

Providing a sales tax exemption for purchases of property and services by nonprofit organizations distributing food pursuant to a food distribution program on a charitable basis.

KS SB520

Providing a sales tax exemption for certain not-for-profit organizations that provide public transportation services.

KS SB60

Substitute for SB 60 by Committee on Assessment and Taxation - Providing sales tax exemptions for custom meat processing services, purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, certain purchases and sales by the Johnson county Christmas bureau association, certain purchases by doorstep inc., exploration place, inc. and Kansas children's discovery center, inc. and sales of menstrual discharge collection devices and diapers and establishing an annual sales tax holiday exempting certain sales of school supplies, computers and clothing.

KS HB2004

Providing countywide retailers' sales tax authority for Seward county for the purpose of financing the costs of roadway and bridge construction, maintenance and improvement in the county.