A new bill that would cut taxes for Kansas taxpayers and businesses is now under consideration by the Kansas House of Representatives Committee on Taxation after a hearing Wednesday.
House Bill 2844 includes mechanisms to reduce Kansas individual income tax, property taxes, and business tax.
Proponents of the bill included the Kansas Farm Bureau and Kansas Livestock Association, who say the reduction of the statewide property tax levied for schools from 20 to 18 mills will reduce tax liabilities for the farmers and ranchers they represent.
“We support the broad-based property tax relief included in this bill,” John Donley, who represents Kansas Farm Bureau. He also noted further reduction in mills would be welcome as the bill continues through the legislative process.
Tim Graham, representing Kansas teachers who are members of the Kansas National Education Association (KNEA), testified neutral to the bill, saying teachers will benefit from a reduction in taxes. He expressed concerns future legislatures might not backfill lost revenues from the reduction in mills for schools, which the bill states will be appropriated from money from the State General Fund.
“We encourage the committee to make sure the legislative intent is clear that revenue will be backfilled,” Graham said.
Eric Stafford, representing the Kansas Chamber pointed to neighboring states whose residents pay lower income tax rates than Kansas.
“All surrounding states have lower top rates than Kansas does thanks to recent tax relief,” Stafford said in his testimony in support of the bill.
Dave Trabert, president of Kansas Policy Institute said the bill’s proposed reduction in taxes will be fair to all taxpayers.
“Those who make the most will pay the most,” Trabert said. “The highest earners will get about a 1% reduction. Low-income families fair very well with this bill.”
Next step for the bill is for the House Tax Committee to have discussion and action with the possibility of amendments before voting to send it to the full body for consideration.
