Governor Laura Kelly issued her first veto Monday, putting a major piece of Republican-backed tax legislation on hold — at least for the short term.
Kelly, a Democrat, vetoed Senate Bill 22, championed by Republicans as a way to let state residents keep more of their income by letting Kansans itemize their state tax returns and by reducing the sales tax rate on food from 6.5 percent to 5.5 percent.
Kelly compared SB 22 to tax policy under former governor Sam Brownback, specifically tax cuts enacted in 2012 that opponents believe led to sharply lower revenues. She said backing SB 22 would “throw our state once again into a self-inflicted budget crisis, diminishing all the investments we’ve worked so hard to rebuild and restore.”
The state itemization was advanced because federal and state tax policy no longer align, so Kansas residents currently have to itemize their federal taxes before they can itemize state taxes. Kansas is also one of just a few states that taxes food, and the Wichita Eagle says the state’s food tax rate is among the highest in the nation.
All told, the Kansas Department of Revenue says SB 22 would reduce tax collections by around $500 million over three years.
Senate President Susan Wagle said the veto broke Kelly’s promise of no new taxes as well as her commitment to decrease the food sales tax. Kelly says she supports lowering the food tax, but she says the state’s overall financial situation has to stabilize before taking that step.
Now that Kelly has vetoed the bill, the question is whether Republicans can muster enough votes to override her action in both the House and Senate. The House passed SB 22 by a 76-43 vote, less than the 84 votes needed to override. The Senate’s approval came on a 24-16 vote, less than the minimum 27 votes for an override.
