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HB 2081

Substitute for HB 2081 by Committee on Taxation - Providing a sales tax exemption for community pharmacies serving medically underserved individuals and families.

2025-2026 Regular Session

HB 2081 exempts nonprofit community pharmacies serving medically underserved individuals from Kansas sales tax on purchases, aiding expansion and operations.

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Bill Summary · HB 2081

Summary — HB 2081 (Introduced January 24, 2025)

Providing a sales tax exemption for community pharmacies serving medically underserved individuals and families

Purpose / Intent

HB 2081 creates a state sales-tax exemption for nonprofit community pharmacies that provide services to medically underserved individuals and families. The bill is intended to lower operating and capital costs for qualifying community pharmacies so they can expand or sustain services to underserved populations.

Key provisions

  • Adds nonprofit community pharmacies that serve medically underserved individuals and families to the list of entities whose purchases are exempt from Kansas sales tax (amends K.S.A. 2024 Supp. 79‑3606).
  • The exemption applies to all purchases of tangible personal property and services made directly by a qualifying community pharmacy.
  • Purchases made by a contractor for capital projects at a qualifying pharmacy are also exempt.
  • The exemption explicitly does NOT apply to community pharmacies that dispense prescription drugs intended to be used for the purpose of causing an abortion.
  • Effective date: July 1, 2025.
  • Hearing: House Committee on Taxation — March 18, 2025, 3:30 PM, Room 346‑S.

Fiscal impact (from the Division of the Budget fiscal note)

  • Estimated number of qualifying pharmacies: 2 (based on IRS exempt-organization data).
  • Ongoing annual state revenue reduction beginning FY2026: about $8,000 total
    • State General Fund: ≈ $6,500/year
    • State Highway Fund: ≈ $1,500/year
  • One-time additional revenue loss expected in FY2026 from planned equipment/capital purchases: ≈ $45,000
    • State General Fund: ≈ $37,000 (one‑time)
    • State Highway Fund: ≈ $8,000 (one‑time)
  • Total estimated state revenue reduction in FY2026 (ongoing + one‑time): ≈ $53,000.
  • Small one‑time administrative cost to Department of Revenue (revising publications/forms): $2,010 (State General Fund) in FY2026.
  • Assumes 1.0% annual growth in exempt sales/purchases for subsequent years (FY2027–FY2030 figures provided in fiscal note).

Who would be affected

  • Beneficiaries: nonprofit community pharmacies that meet the “serving medically underserved individuals and families” criterion.
  • Governments: modest reductions in State General Fund and State Highway Fund revenues; local governments would experience reduced local sales-tax receipts (noted potential effects on financing/pledges, including STAR bond projects — impact unknown).
  • Contractors and suppliers to qualifying pharmacies would make exempt purchases for capital projects and equipment.

Procedural / timeline notes

  • Introduced January 24, 2025; referred to House Committee on Taxation.
  • Hearing scheduled March 18, 2025 (House Taxation, Room 346‑S).
  • Bill would take effect July 1, 2025 if enacted.

(Information summarized from the HB 2081 introduced version and the Division of the Budget fiscal note dated February 20, 2025.)

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

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