Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor
Division of the Budget
January 29, 2025
The Honorable Adam Smith, Chairperson
House Committee on Taxation
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2013 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2013 is
respectfully submitted to your committee.
HB 2013 would discontinue the imposition of sales tax on cable, community antennae, and
other subscriber television services. The bill would take effect on July 1, 2025.
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- $670 --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $670 --
Revenues
State General Fund -- ($68,900,000) ($75,900,000)
Fee Fund(s) -- (15,100,000) (16,700,000)
Federal Fund -- -- --
Total Revenues -- ($84,000,000) ($92,600,000)
FTE Positions -- -- --
The Honorable Adam Smith, Chairperson
Page 2—HB 2013
The Department of Revenue estimates that HB 2013 would reduce state revenues by $84.0
million in FY 2026. Of this amount, State General Fund revenues are estimated to decrease by
$68.9 million, while State Highway Fund revenues are estimated to decrease by $15.1 million.
The bill is also expected to reduce local sales tax revenues; however, a specific estimate of this
reduction was not calculated by the Department of Revenue. The FY 2026 estimate includes a
one-month lag as the sales tax change goes into effect. The fiscal effect to state revenues in
subsequent years would be as follows:
FY 2027 FY 2028 FY 2029 FY 2030
State General Fund ($75,900,000) ($76,600,000) ($77,400,000) ($78,200,000)
State Highway Fund (16,700,000) (16,800,000) (17,000,000) (17,100,000)
Total ($92,600,000) ($93,400,000) ($94,400,000) ($95,300,000)
To formulate these estimates, the Department of Revenue reviewed data of actual sales tax
collections from cable and subscription television services. The Department notes that it is
unknown how the tax treatment of other services bundled with cable and subscription television
services would be impacted by the bill. The Department indicates that reissuing sales tax
publications and revising forms would cost $670 from the State General Fund in FY 2026.
The Kansas Department of Transportation indicates that the bill would reduce State
Highway Fund revenues as noted above. Any fiscal effect associated with HB 2013 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. This bill has the potential to
reduce revenues that are pledged to repay STAR bond projects; however, it is known what impact
the bill would have on the viability of these 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