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HB 2197

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2025 Regular Session Introduced by Tim Griffin and 1 co-sponsor

HB 2197 would exempt Sleep in Heavenly Peace, Inc. from state sales tax on qualifying bed-building purchases starting July 1, 2025.

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Bill Summary · HB 2197

Summary — HB 2197 (2025 session, Kansas)

Status: Introduced January 29, 2025; referred to House Committee on Taxation (as of February 3, 2025)
Statute affected: Amends K.S.A. 2024 Supp. 79-3606 (sales tax exemptions) and repeals existing section
Sponsor/requestor: House Committee on Taxation; requested by Rep. A. Smith on behalf of Rep. Reavis

Purpose / intent

HB 2197 creates a targeted sales tax exemption for purchases made by the nonprofit Sleep in Heavenly Peace, Inc., to support the organization’s work building and providing handmade, fully furnished beds for children who are sleeping on floors or places other than beds. The exemption is intended to reduce the nonprofit’s cost of acquiring materials and services used to construct and furnish beds.

Key provisions

  • Adds (or modifies) the sales tax exemption statute (K.S.A. 2024 Supp. 79-3606) to exempt purchases made by Sleep in Heavenly Peace, Inc. for its bed-building activities.
  • Effective date for the exemption: July 1, 2025.
  • Repeals the currently existing version of the cited exemption statute and replaces it with the amended language (as provided in the bill).

Who is affected

  • Primary beneficiary: Sleep in Heavenly Peace, Inc. (a nonprofit) — would not pay state sales tax on qualifying purchases used to build and furnish beds for needy children.
  • Vendors/suppliers: Sellers to the nonprofit would not collect sales tax on qualifying sales to Sleep in Heavenly Peace, Inc.
  • State and local governments: small reductions in sales tax revenues (state and local) and a modest administrative cost to the Department of Revenue.

Fiscal impact (per Kansas Division of the Budget / Dept. of Revenue)

  • Estimated decrease in state revenues: $3,100 in FY 2026 (ongoing similar effect thereafter).
    • State General Fund: −$2,500
    • State Highway Fund: −$600
  • Estimated decrease in local sales tax collections: approximately $900 (annual).
  • Administrative cost: one-time cost of $1,340 from the State General Fund in FY 2026 to reissue sales tax publications and issue tax-exempt certificates.
  • The Kansas Department of Transportation and local government associations (Kansas Association of Counties; League of Kansas Municipalities) concur that state highway and local collections would be reduced by the amounts above.

Procedural / timeline notes

  • The exemption would begin July 1, 2025, if the bill is enacted.
  • Fiscal effects noted by state agencies are not reflected in the FY 2026 Governor’s Budget Report.
  • Further legislative action (committee consideration, votes) will determine final enactment.

Compiled from official sources — confirm details with the bill’s official record.

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