Conference committee work is getting started in the Legislature after the Kansas House and Senate passed similar — but not identical — income tax packages.
The push towards a new income tax policy is a new one this session, according to 17th District Senator Mike Argabright of Olpe.
Audio PlayerThe end goal is to move the state towards one income tax rate, both for residents and businesses. Argabright voted for Senate Bill 259, which goes to a 4.5 percent personal rate as opposed to the current two-rate package of 5.58 and 5.2 percent. Any revenues above inflation are then set to push the corporate rate from 3.5 percent, along with a 3-percent surcharge on taxable income over $50,000, to 4.5 percent with no surcharge.
The House package, HB 2318, cuts individual income taxes to 4 percent — whenever the state generates at least $5.96 billion stemming from a combination of income taxes and inflation. 60th District Representative Mark Schreiber of Emporia says the plan is more complex than the Senate option.
Audio Player13th District Representative Duane Droge of Eureka and 76th District Representative Brad Barrett of Osage City both voted in favor. Barrett says the bill has mechanisms designed to keep the state solvent.
Audio PlayerThe House bill also has a provision designed to keep taxes from going down if the state’s rainy-day fund goes below 20 percent of the state’s general fund tax receipts. Sales tax and excise tax policies are not adjusted with the House plan.
With first adjournment looming Friday, more work is obviously ahead for income taxes. However, there are still some property tax conversations ahead as well as additional work on the overall budget. The veto session is tentatively planned for April 10-12.
