Tax Discussions Continue

March 14, 2010 Update

the House Taxation Committee tabled HB 2593, which would increase taxes on alcoholic beverages.  Although the bill has been tabled, the discussion will likely resurface before the end of this legislative session.

The increase in the wholesale tax on alcoholic beverages in HB 2593, which has not been changed since 1977, is aimed at helping to close the more than $400 million dollar budget gap in the state’s general fund, and would also shifts increased revenue from the tax to programs that care for the developmentally and mentally disabled.  The tax increase is estimated to increase state revenue by about $21 million in 2011, and would provide a great deal of relief for community mental health agencies who have experienced $20 million in cuts recently. Read the full Neighborhood News Update...

Legislative post audit reveals problems with Kansas tax policy

February 21, 2010 Update

On Wednesday, the Legislative Post Audit Committee heard two new reports from the nonpartisan Post Audit division about the impact and effectiveness of tax credits and exemptions in Kansas.  Their findings validate the concerns many Kansans have had about the state’s tax policy. For years, the Legislature has arbitrarily granted or denied tax exemptions and credits with no set criteria on which to base its decision.  As the number of tax exemptions and credits has skyrocketed, the need for clearly defined and consistent guidelines has become more pressing. Read the full Neighborhood News Update...

House Tax Committee begins hearings

February 14, 2010 Update

On Monday, the House Committee on Taxation began a two-week series on various proposals, which will continue next week. In particular, HCR 5028 would establish a three-year moratorium on the granting of new tax exemptions, tax credits or economic development incentive programs involving employer withholding taxes.  This idea- in addition to rolling back some tax exemptions- has been widely floated throughout the interim as an alternative to a sales tax increase.

Department of Revenue suggests implementing fee for filing paper tax returns

February 7, 2010 Update

In an effort to increase efficiency and decrease administrative costs, the Department of Revenue supports a “user fee” on Kansans who file a paper tax return instead of electronically filing.  House Bill 2521 would institute a $25 for filing a paper return, $10 for requesting a paper refund check and $5 for submitting a paper sales tax report. If approved, it will reduce the Department’s administrative expenditures by $860,000. Read the full Neighborhood News Update...

Hearings continue on Governor’s sales tax proposal

January 30, 2010 Update

After hearing testimony last week in support of Governor Parkinson’s proposed sales tax increase, opponents got their say on Tuesday.  Opponents argue that a sales tax increase would have a negative impact on small businesses in the state and decrease economic activity.  Discussion also focused on maintaining competitiveness with our border states, especially Missouri, noting that some business owners may consider moving their business out of the state if the sales tax increased. Read the full Neighborhood News Update...

Hearings begin on Governor’s sales tax proposal

January 25, 2010 Update

On Thursday, January 21, the House Taxation Committee held hearings for House Bill 2475, which is Governor Parkinson’s proposed 1% sales tax increase.  Governor Parkinson introduced this proposal in his State of the State address as a means of protecting Kansas schools, essential services, and vulnerable citizens from deeper budget cuts. Concerned parents, Kansans with disabilities, public school representatives all testified that a revenue package was the only way to prevent school closings, teacher layoffs, increased class sizes, and general subpar public education throughout the state.  Read the full Neighborhood News Update...