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TOPEKA — The House Taxation Committee concluded hearings Tuesday on a bill that would repeal sales tax exemptions for non-profits and charities and eliminate the state exemption on the sale of residential utilities.

House Bill 2549 was the subject of several days hearings but won't be worked by the committee for at least another week, said Committee Chairman Richard Carlson, R-St. Marys.

Carlson said he expected there would be a number of amendments offered to the bill, which has been opposed by everyone from the Girl Scouts and church groups to the state's major energy companies.

In other action Tuesday, the committee rejected on a voice vote House Concurrent Resolution 5028, a non-binding measure that urged a three-year moratorium on further tax breaks .

Democrats, including Revenue Secretary Joan Wagnon, and other supporters of the measure said the state in the past 15 years has granted a number of treasury draining tax exemptions or credits but has no mechanism in place for reviewing their effectiveness. They urged a moratorium while state tax policy was reviewed.

"Currently, the exemptions are held in perpetuity with no opportunity for review," said Rep. Dolores Furtado, D-Overland Park.

But Republicans said the resolution would be toothless and send the wrong message to businesses that might consider locating in Kansas.

"Like most resolutions, this one is worthless," said Rep. Anthony Brown, R-Eudora. "I'm not sure why we're spending time on this. I'm not going to support it."

Rep. Julie Menghini of Pittsburg, ranking Democrat on the committee, said she was still waiting to see evidence that the various credits and incentives included in the tax code for businesses had actually created job growth.

"I wonder where are those jobs," she said. "I'm still waiting to see how effective those incentives and credits have been."

State spending has been reduced about $1 billion the past two years and lawmakers are facing a $400 million budget shortfall for the fiscal year that begins July 1.

Democrats, led by Gov. Mark Parkinson, have said enough or too much has been cut from school and social service programs and that lawmakers need to raise taxes or close exemptions in order to fund essential government services.

Republicans, especially in the House, have said more spending cuts are the best way to solve the budget crisis.

"If we were really serious, this bill would include a moratorium on spending," said Rep. Arlen Siegfried, R-Olathe.

The committee also heard or received written testimony from various opponents of HB 2549, including energy companies and David Springe, consumer counsel for the Citizens Utility Ratepayer Board.

Springe and others urged legislators to remove a provision in the bill that would repeal the sales tax exemption for residential utilities.

Springe said passage of the bill would mean "an immediate 5.3 percent across the board increase in residential electric and natural gas utility bills," at a time when "Kansans are already facing increasing utility rates and a challenging economy.

"Energy affordability is at a crisis point in Kansas and it's going to get worse," Springe said.

Rep. Mario Goico, R-Wichita, predicted that removing the energy exemption would fall hardest on the poor.

"It's going to be devastating," he said. "The poor will feel it the most."

"This should be one of the last options considered because of its regressive nature," Springe said.

Supporters of the bill were given opportunity to testify last week.