SESSION OF 2025
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2098
As Recommended by House Committee on
Taxation
Brief*
HB 2098 would enact a sales tax exemption for
purchases of tangible personal property made by certain not-
for-profit theaters.
In order to qualify for the exemption, theaters would be
required to provide for:
●The creation and production of novel works for
concerts or productions;
●The employment of full-time theater staff;
●Governance by a board of directors that provides a
partnership between the board and theater staff
and a connection to the community by ensuring
sound business and financial practices and a
commitment to bringing new thoughts and ideas to
the governance of the organization;
●The dedication to providing strong educational
commitments to the community in which the
theater is located; and
●The commitment to providing ongoing live theater
as an art form using available local resources.
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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
https://klrd.gov/ Background
The bill was introduced by the House Committee on
Taxation at the request of Representative Sanders.
House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by representatives of Music Theatre Wichita
and Salina Community Theatre. The proponents generally
stated the bill would reduce the costs of theater production
expenses and treat theaters similar to other community arts
and culture organizations, such as zoos, art museums, and
children’s museums.
Written-only proponent testimony was provided by
representatives of Great Plains Theatre, Theatre Atchison,
Theatre Lawrence, and Topeka Civic Theatre.
Written-only opponent testimony was provided by a
representative of the League of Kansas Municipalities,
generally stating the bill would erode the sales tax base
without a distinguishing reason for the exemption.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department of Revenue estimates
enactment of the bill would reduce state revenues by
approximately $169,500 per year beginning in FY 2026. State
General Fund revenues would decrease by approximately
$139,000, and State Highway Fund revenues would decrease
by $30,500.
The Kansas Association of Counties and League of
Municipalities indicate enactment of the bill would reduce
local sales tax collections by an unknown amount.
Any fiscal effect associated with enactment of the bill is
not reflected in The FY 2026 Governor’s Budget Report.
Taxation; sales tax; exemptions; community theaters
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