The Governor’s Council on Tax Reform is expanding on several suggestions made last month with its interim report announced this week.
Focusing on balancing the “three-legged stool” of income, property and sales tax revenue while making the overall tax policy less regressive, the council is recommending several tax policy points:
*Enacting a refundable food sales income tax credit based on federal adjusted gross income
*Directing the Legislature to fund the Local Ad Valorem Tax Relief Fund for the first time in nearly two decades
*Enacting a sales tax on digital assets like books, music and subscription services
*Developing a property tax lid exemption if local transportation projects need funds
The council also identified other areas for further study this session, including proposals to broaden the tax base; reviews of earned income tax credits, the property tax lid and food sales taxes; and a general review of the property tax system as a whole.
The council was formed in September with a directive from Governor Laura Kelly to identify goals, explore tax strategies and gain input before issuing its first report in December. Click here for a link to the full report.
