During a debate in the House, Rep. Patrick Penn, a U.S. Army veteran and Republican from Wichita, passionately shared his personal experiences in Afghanistan and Iraq. He used these experiences to emphasize the importance of keeping property tax relief for disabled veterans separate from policies that could potentially benefit corporations like Walmart and Genesis Health Clubs by allowing them to avoid paying property taxes. The image above shows Rep. Penn during the March 5, 2024 debate in the House.
U.S. Army combat veteran and state Rep. Patrick Penn passionately pleaded with his colleagues in the Kansas House to reject a bill that contained two controversial provisions. These provisions aimed to reduce commercial property taxes but put at risk the much-needed property tax relief for veterans with disabilities. Penn’s plea was rooted in his experience as a veteran and his understanding of the importance of supporting those who have served their country.
Wichita Republican Penn was among those who advocated for House Bill 2096 to be sent back to House and Senate negotiators. The aim was to remove the objectionable elements that favored big businesses. This move was made despite the bill being generally well-received due to its provisions for property tax relief. The relief would benefit elderly homeowners, individuals using various vehicles such as electric wheelchairs and boats, as well as servicemembers who returned from Afghanistan or Iraq with lasting physical and mental injuries.
Many people, including Penn, expressed their disapproval of negotiators who were willing to jeopardize property tax reform for disabled veterans by including a provision that would grant major retailers like Walmart and Home Depot the advantage of the “dark-store” theory. This theory allowed these retailers to have their property tax assessments calculated as if their commercial buildings were vacant.
A group of individuals, including him, expressed their objection to a particular section in the bill that was influenced by the owners of Genesis Health Clubs, a fitness center based in Wichita. This section was referred to as the “government competition” section. The owners of Genesis Health Clubs, along with their lobbyist and legislative supporters, have been actively advocating for a property tax exemption for the company. This exemption would be applicable if the company were to face competition from recreational facilities that were funded by tax dollars from various public entities such as cities, counties, schools, and townships.
“I urge you to support this motion to send it back,” Penn passionately expressed. “I stand before you feeling disillusioned, incredulous, and yes, angry. It is absolutely unacceptable, with the utmost respect, to provide certain health clubs an advantage or exemption at the expense of disabled veterans and families facing financial hardship.”
The tax rebuke
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During the marathon legislative debate on Friday night, representatives in the House were urged by Penn and others to support the motion put forward by Bill Clifford, a Republican representative and U.S. Air Force veteran from Garden City. The decision to approve the motion sent the bill back to a conference committee comprised of members from both the House and Senate, where further progress will be made.
According to Clifford, this specific package exemplified the kind of questionable legislative tactics that can transpire during late-night sessions at the Capitol.
“As a veteran, I feel deeply offended by the fact that we are being compelled to vote against our fellow veterans,” he expressed. “Although there are some positive aspects to consider, our intention is not to simply support measures that may lead to negative consequences.”
Rep. Pat Proctor, a Leavenworth Republican and retired U.S. Army colonel, highlighted that property tax relief is the primary concern for 20 organizations representing Kansas veterans. He emphasized that the 3,500 veterans who leave active duty annually at Fort Riley, Fort Leavenworth, and McConnell Air Force Base are relocating to states like Texas, Florida, Nevada, and Alaska because these states provide property tax benefits for disabled veterans.
Rep. Adam Smith, the Weskan Republican and chair of the House Taxation Committee, expressed his belief that all veterans deserve our utmost respect and honor.
Rep. Mari-Lynn Poskin, a Leawood Democrat, has voiced her opinion that fitness clubs and big-box retailers should not delay the passage of property tax benefits required by disabled veterans in Kansas. She believes that these entities should be placed at the back of the line in order to prioritize the needs of the veterans.
Across the rotunda
Sen. Jeff Longbine, a Republican from Emporia, made a similar proposal to transfer the bill to a conference committee. The purpose was to separate the quality pieces from the toxic ones for individual consideration. Unfortunately, his strategy did not succeed as the motion was defeated by a narrow margin of 19-20. Despite this setback, the bill managed to secure approval from the Senate with a vote of 23-14.
Senate President Ty Masterson, a Republican from Andover, may have saved the bill from being rejected twice by speaking in favor of the Genesis’ property tax provision. The provision, which was originally aimed at fitness clubs, restaurants, and child care facilities, was expanded to downplay its connection to Genesis and increase its appeal to a wider audience.
Masterson emphasized that it is not appropriate for the government to engage in competition. He expressed his support for this provision, stating that it is not about specific individuals, but rather about promoting competition.
Bundling popular bills with unpopular subject matter has become a common practice in the Kansas Legislature. When the Legislature returns from a three-week break in late April, there is an opportunity for House and Senate tax negotiators to meet and discuss the components of HB 2096. There is a possibility to narrow down the legislation to address the concerns of dissenters or, alternatively, the package could be abandoned altogether. Another option is for House and Senate leadership to regroup and make another attempt with the same deal.
Sen. Jeff Pittman, a Democrat from Leavenworth, expressed his concerns about using veterans as bait. He acknowledged that the term “bait” may seem strong, but emphasized the importance of not exploiting our veterans in any way.
In 2023, Democratic Governor Laura Kelly vetoed a bill that included the government competition aspect. However, GOP Senator Caryn Tyson of Parker believes that the new package should still be pushed forward, regardless of Kelly’s intentions.
Tyson, the chair of the Senate Assessment and Taxation Committee, emphasized the need to prioritize the concerns of their constituents rather than being preoccupied with the governor’s potential veto. He emphasized that government entities should not be competing against private businesses, as that goes against the primary purpose of government.
Those poison pills
The proposed Genesis tax break aims to extend its benefits to fitness facilities, child-care operations, and restaurants throughout the state. This initiative intends to provide a tangible and intangible state property tax exemption to businesses located in cities where a government facility, owned or operated by a competitor, lies within a 5-mile radius.
To be eligible for the tax break, businesses must not be preceded by a government operation. Additionally, they must be up to date on their state and local tax payments. In the past, Genesis has been late in paying property taxes in multiple counties.
The bill ‘cynically’ bundles big-business tax breaks with aid to disabled veterans, and the House has taken action to block it. This move is seen as a way to prioritize the needs of disabled veterans over the interests of big businesses. The House’s decision reflects a commitment to support and protect those who have served our country. It sends a powerful message that the well-being and welfare of disabled veterans should not be compromised for the sake of corporate advantage. This action demonstrates a dedication to fairness and justice for our brave men and women who have sacrificed so much for our freedom.
