KABR is closely tracking two major legislative issues at the Kansas Legislature:  The Governor’s Revenue Proposal to double the liquor enforcement tax from 8% to 16%, and the Uncork Legislation to put Strong Beer and Wine Sales in Big Box and Convenience Stores.  At this point, neither bill has been published.  We do expect the House Commerce Committee to hold hearings on the Uncork bill (maybe in February), assuming that bill is referred to the Commerce Committee.

PUBLIC INFORMATIONAL HEARING ON LIQUOR TAX AND TOBACCO TAX NEXT TUESDAY

The House Taxation Committee will host an informational hearing on Tuesday, January 31 at 3:30 p.m. on the Liquor Tax and Tobacco Tax Increases.  See Tax Committee information at the bottom of this message.  If you are interested in providing testimony, please contact Amy at 785-969-1617 as soon as possible.  If you are from Johnson or Wyandotte County, this tax increase will significantly impact your business.  Groups that support the increase cite the fact that cereal malt beverages at the convenience store pay sales tax as high as 9.5% in some cities, while liquor store beer is charged 8%.  This position ignores the multiple levels of taxation that apply to liquor store products: manufacturer, gallonage, enforcement and drink tax.  Our customers pay a tax on a tax on a tax.  Retailers will soon see anti-tax public information materials delivered by the distributors.

The tobacco tax increase is also substantial, adding $1.00 to every pack of cigarettes and doubling the tobacco products tax from 10% to 20%. 

House Taxation Committee – Contact Amy at 785-969-1617 to submit testimony.  We will help facilitate.  Individuals who intend to testify must contact Lea Gerard, Committee Assistant–785-296-4830 and provide copies of testimony 24 hours in advance.

Meeting each day at 3:30 p.m. in room 346-S of the Kansas Statehouse  (Click here for list of committee members.)   Chair is Steven Johnson, Vice Chair Tom Phillips, and Ranking Minority Member Tom Sawyer.

Monday, January 30:   Informational hearing:  Sales Tax Exemptions Statutes: 3603(b), 3603(p), 3606(ee), 3606(t), 3606(hhhh), 3606(nn), 3603(s), 3606(i)    (Includes Lottery tickets and advertising)

Tuesday, January 31:   Public Input on Governor's proposals regarding raising cigarette tax, alcohol tax and potential motor fuel tax

Wednesday, February 1:   Informational briefing:  Taxation on Retirement Benefits

Thursday, February 2:  Discussion on: Changes to Income Tax Rates and Glide Path to Zero