Read KGFA’s Legislative Agenda.
All of the bills being tracked by your Association are logged on the Bill Tracker page of our website. You can read a brief summary of the bill, the actual text of the bill, the history of the bill and upcoming actions by following the link. If you have any problems using the Bill Tracker, please contact Ron Seeber at firstname.lastname@example.org.
Longest Legislative Session in Kansas History Concludes
On Friday, June 12th around 6:30pm, the Kansas Legislature completed its work. It was the 113th day of the 90 day session. The longest session in Kansas history.
Your Association is pleased to say that our aggressive education efforts were successful and agribusiness interests were spared from targeted tax increases.
The House worked through the night and into the morning hours on Wednesday night and Thursday night/Friday morning. The Thursday/Friday House session resulted in passage of both a tax “trailer bill” (CCR SB 270) and the major tax package (CCR HB 2109). The “trailer bill” was crafted to help address political concerns contained in CCR 2109. CCR HB 2109 was approved by the Senate on Sunday, but did not have the votes in the House so the trailer bill was developed in order to obtain the necessary vote. Both bills were passed by the narrowest of margins in both chambers. House passage of the tax measures concluded at 4:45am Friday morning. Your Association was present during the entire debate.
The trailer bill eliminates provisions in the HB 2109 CCR sunsetting some sales tax exemptions and does away with creation of a special commission to study tax exemptions. Instead any studies of existing exemptions will now be conducted through the existing tax committee structures.
The two tax bills generate enough to cover the over $400 million budget deficit. The tax plans coupled with the Governor cutting the state budget by an additional $50 million leaves a total ending balance of $86 million.
Break Down of Tax Increases:
- Sales tax: Increases state tax rate to 6.5 percent starting July 1, a change of more than one-third of a cent. ($164.2 million)
- Itemized deductions: Eliminates most itemized deductions and reduces deductions for charitable contributions, home mortgage interest and property tax payments to 50 percent. ($97 million)
- Cigarette taxes: Increased by 50 cents per pack. Starting July 1, 2016, the plan levies a new tax on e-cigarettes of 20 cents per milliliter. ($40.4 million)
- Income tax rates: Delays scheduled cuts in tax rates until 2018 and 2019, and changes the formula, commonly known as the “march to zero,” that is used for calculating future income tax rates after that, based on growth in state revenue. ($26.4 million)
- Tax amnesty: Provides a tax amnesty period from Sept. 1 to Oct. 15, allowing the state to waive interest and penalties for people who pay up their delinquent tax accounts. ($30 million)
- Business income: Imposes income tax on “guaranteed payments” to certain business owners. ($23.7 million)
- Tax credit limitations: Requires any taxpayer claiming an income tax credit to have a valid Social Security number for the entire year in which the credit is claimed. ($3 million)
NOTE: We will be providing a comprehensive review of all legislation approved in the near future.