Legislative Wrap-up
By Whitney Damron
Government Affairs Counsel - Kansas Sport Hunting Association
The 2015 legislative session formally ended on Friday, June 26 with Adjournment Sine Die, which is Latin for “Without Day,” meaning adjournment without setting another day to meet. Legislators wrapped up their substantive work in the Veto Session on the 113th day of the session when agreement was finally reached on a comprehensive tax package, which will fund the state’s budget for the next two years. The 2015 session was the longest in the state’s history, eclipsing the previous record of 107 days set in 2002.
Of importance to KSHA members in the tax bill is the retention of the state income tax exemption for LLC’s, partnerships, sole proprietorships and ag-related entities, which was enacted in 2012. Critics of the 2012 tax bill suggested the Legislature should revisit this issue and impose at least a modest amount of income tax on these business entities. The Governor threatened to veto any re-imposition of state income taxes on these entities and in the end, the Governor prevailed. Other provisions of the tax bill include an increase in the state income tax from 6.15% to 6.5%, effective July 1, 2015 and elimination of certain itemized deductions.
Early in the session we became aware of a proposal to impose an additional 4% tax on lodging and car rentals with revenues diverted for three years to the State General Fund and then reduced to 1.5% with proceeds going to the Kansas Promotion Fee Fund. Working with State Representative Ken Corbet, a KSHA President, we were able to solicit other stakeholders and head this proposal off before it was even formally introduced.
The Veto Session lasted 5 ½ weeks and during that time, a number of proposed tax bills and components were offered for consideration. We saw considerable pressure from Johnson County area legislators to include repeal and alteration of tax treatment for agriculture land and the sales tax exemption for the purchase of agriculture equipment. There were also proposals to repeal all sales tax exemptions and effectively require all interested parties to come before the Legislature and seek reauthorization of such exemptions. This process would have also included previously-enacted exemptions for hunting guide services and game birds.
In summary, we can expect to see tax issues of interest and concern to the members of the KSHA front and center in the 2016 session.
In regard to wildlife issues, the 2015 session was relatively quiet.
Highlights are:
- SB 46 requires domesticated cervids (deer, elk, moose, etc.) to have identification affixed to the animal to help with identification if they leave their area of confinement. Identification is not required for transportation of such animals to a licensed or registered slaughter facility.
- KSHA members may recall legislation in 2014 to allow for a landowner to claim possession of an animal illegally obtained on their property of not otherwise required for evidence (e.g., first right of possession). The bill, HB 2341, originated out of a dispute over the antlers of a large buck taken in Osage County that has been subject to litigation, prosecution for poaching and related entanglements as the landowner (or tenant) has sought to obtain the antlers from this incident. Legislation introduced this year would have made the bill passed last year retroactive and effectively required the antlers be given to the landowner where this particular deer was killed or died. The bill ultimately passed the House, but failed to pass the Senate, where it was reworked into a House/Senate Conference Committee Report, but ultimately rejected by the Senate.
- SB 120 reduced the maximum acreage the Kansas Department of Wildlife, Parks and Tourism can purchase from 320 acres in the aggregate to 160 acres. The law exempts the Department from purchases of less than 640 acres in four counties (Cherokee, Crawford, Labette and Neosho Counties) with Natural Resource Damage and Restoration Funds.
- Legislation clarifying the property tax classification status of certain bed & breakfast properties failed to advance in either the House or Senate.
- This is the sum & substance of WP&T legislation for the year. As you can see from this report, tax policy is likely to become a major issue for the members of the Kansas Sport Hunting Association in the years ahead, in particular following the next round of redistricting and elections as rural Kansas continues to lose population (2020 census; 2022 House Elections & 2024 Senate Elections).
Please do not hesitate to contact me if you have questions in regard to the 2015 legislative session and related matters.
Whitney Damron
wbdamron@gmail.com
(785) 224-6666
www.wbdpa.com
