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HB 2013

Relating to mental health treatment providers.

2025 Regular Session Introduced by Lesly Muñoz and 2 co-sponsors

HB 2013 would remove the state sales tax on certain cable/subscriber TV services for providers subject to the federal franchise fee, starting July 1, 2025.

Chapter 190, (2025 Laws): Effective date January 1, 2026.
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Bill Summary · HB 2013

HB 2013 — Summary (Kansas, 2025)

Purpose

HB 2013 would eliminate (discontinue) the state sales tax on certain cable and subscriber television services. The stated policy aim (per proponents) is to create tax parity between traditional cable providers and streaming services.

Key provisions

  • Amends K.S.A. 2024 Supp. 79-3603 to remove state sales tax on cable, community antennae, and other subscriber television services — but as amended by the House Committee on Taxation:
    • The exemption applies only to cable providers that are subject to the federal cable franchise fee (i.e., services subject to 47 U.S.C. §542).
    • The change was clarified to apply only to the state portion of the sales tax (not to explicitly repeal local sales taxes in statute).
  • Effective date (per Division of the Budget fiscal note): July 1, 2025.
  • Minor administrative costs: Department of Revenue estimated $670 (State General Fund) for reissuing publications/forms.

Fiscal impact (as amended)

Division of the Budget / Department of Revenue estimates (committee-amended bill):
- FY 2026: Total state receipts decrease $12.1 million
- State General Fund: –$9.9 million
- State Highway Fund: –$2.2 million
- FY 2027: Total –$13.3 million (SGF –$10.9M; Highway –$2.4M)
- FY 2028: Total –$13.4 million (SGF –$11.0M; Highway –$2.4M)
- FY 2029: Total –$13.6 million (SGF –$11.2M; Highway –$2.4M)
- FY 2030: Total –$13.7 million (SGF –$11.3M; Highway –$2.4M)

(The Department previously produced a larger revenue-loss estimate for the unamended version; the figures above reflect the committee-amended scope.)

Local governments: the bill is expected to reduce local sales tax collections but a specific local loss was not estimated. The Kansas Association of Counties and League of Kansas Municipalities indicated a net reduction to local sales tax revenues; there is potential impact on revenues pledged to STAR bond projects.

Who is affected

  • Directly: cable operators subject to the federal franchise fee (their receipts for covered services would no longer be subject to the state sales tax).
  • Indirectly: State General Fund and State Highway Fund (reduced receipts); local governments (reduced local sales tax receipts per associations).
  • Consumers: no direct tax change to streaming services; impact on consumer bills depends on whether providers pass savings through.

Procedural status & timeline

  • Introduced: January 22, 2025.
  • House Committee on Taxation: heard testimony (Jan. 29, 2025); amended to limit scope to providers subject to federal franchise fee and to state sales tax only.
  • Current status (per provided information): Committee report recommending bill be passed as amended by the Committee on Taxation.

Other notes & uncertainties

  • The Department of Revenue noted uncertainty about tax treatment of services bundled with cable/subscription TV (e.g., broadband, bundled streaming, ancillary services).
  • The Committee received mixed testimony: proponents (cable companies, some trade groups) argued parity with streaming; opponents (county and municipal associations) raised concerns about erosion of local tax base and impacts to local projects.
  • The fiscal effects are not included in the FY 2026 Governor’s Budget Report.

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

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