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HB 2388

Providing a sales tax exemption for purchases and sales made by the friends of cedar crest association.

2025-2026 Regular Session

HB 2388 adds Friends of Cedar Crest to Kansas sales-tax exemption, letting them buy and sell qualifying items tax-free and modestly reducing state/local revenue.

Died in Committee
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Bill Summary · HB 2388

Summary — HB 2388 (2025 session, Kansas)

Title: Providing a sales tax exemption for purchases and sales made by the Friends of Cedar Crest Association
Introduced: February 4, 2025 — Referred to House Committee on Taxation

Purpose / Intent

HB 2388 would add the Friends of Cedar Crest Association (a nonprofit organized to preserve, restore and enhance Cedar Crest) to the list of entities whose purchases and sales are exempt from Kansas sales tax. The intent is to relieve the nonprofit of sales tax on qualifying purchases and to exempt sales it makes that would otherwise be taxable.

Key provisions

  • Amends K.S.A. 2024 Supp. 79-3606 (the statutory sales-tax exemption list) to include purchases and sales made by the Friends of Cedar Crest Association.
  • Applies to tangible personal property and services as governed by the referenced statute (i.e., creates the same exemption status this statute provides for other listed entities).
  • No programmatic or administrative changes to taxation procedures are specified beyond the statutory exemption.

Fiscal impact (from Division of the Budget / Department of Revenue fiscal note, Apr 29, 2025)

  • FY 2026: Estimated net reduction in state revenues of $3,500 total
    • State General Fund: −$2,900
    • State Highway Fund: −$600
  • FY 2027: Estimated reduction of $14,000 total (higher because the organization plans large-scale renovations)
    • State General Fund: −$11,500
    • State Highway Fund: −$2,500
  • FY 2028 and subsequent years: projected to remain at or slightly above ~$3,500 per year.
  • Estimated reduction in local sales tax revenues: about $1,500 per fiscal year.
  • No state FTE changes identified.
  • Agencies consulted: Kansas Department of Revenue and Kansas Department of Transportation provided estimates; Kansas Association of Counties flagged possible local revenue loss; League of Kansas Municipalities did not respond to the Division’s request for information.
  • The fiscal note indicates these effects are not reflected in the FY 2026 Governor’s Budget Report.

Who would be affected

  • Primary: Friends of Cedar Crest Association (would no longer pay sales tax on covered purchases and could make tax-exempt sales as provided).
  • Secondary: Retailers, contractors, or service providers who sell to the organization (would not collect sales taxes on qualifying sales).
  • State finances: small reductions in State General Fund and State Highway Fund receipts.
  • Local governments: modest reductions in local sales tax revenue (~$1,500/year estimated).

Procedural / timeline notes

  • Introduced Feb 4, 2025; referred to the House Committee on Taxation.
  • Fiscal note prepared under KSA 75-3715a and dated April 29, 2025.
  • If enacted, the bill would amend the cited provision of the Kansas Retailers Sales Tax Act (K.S.A. 79-3606).

Note: The source documents provided contained additional, unrelated bill texts from other states sharing the same bill number (e.g., Arizona and Illinois). This summary focuses only on the Kansas HB 2388 materials (sales-tax exemption for Friends of Cedar Crest Association).

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

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