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Legislature Takes Holiday Weekend / Tax Proposal Set Aside For Now

Friday, May 26, 2017 1:23 PM | Anonymous member (Administrator)

After debating a K-12 school finance bill Wednesday evening and passing it on final action vote Thursday - the House and Senate packed up for a four day holiday weekend.  The Statehouse was quiet by 1:00 p.m. Thursday afternoon.

We expect to see action next Tuesday on a new tax proposal, but can't predict what it may hold.  If you are in contact with your legislators outside of the Statehouse, you can reach out to them before they return on Tuesday.

Apparently, the Governor has indicated he doesn't want to sign an income tax bill repealing the 2012 tax cuts, but would sign tax increases that include consumption taxes (i.e. sales tax, liquor tax, tobacco tax, motor fuels tax, or repealing sales tax exemptions).   So, the House's last attempt at crafting a new Sub for SB 30 included the income tax increases, repealed some sales tax exemptions, and increased the liquor enforcement tax from 8% to 10%  

That plan was derailed when the industry protested and a number of the groups whose services were affected spoke out.  In particular, a proposal to remove the sales tax exemption for "companion animal veterinary services" created concerns for Bayer, who makes veterinary pharmaceutical products and whose world headquarters are in Shawnee Mission.  An effort to quickly switch from veterinary services to custom computer software raised opposition from businesses who rely heavily on custom software services, particularly the banks and other financial institutions.

The services that were included in the Tuesday/Wednesday proposal were: towing, detective services, security guards and patrol services, security system services including locksmiths, non-residential cleaning services, pet care, companion animal veterinary services, mini-self storage, expanded lawn services, personal care services and custom computer software.

This proposal would also have reduced the food sales tax from 6.5% to 55% in July 2020.  



Kansas Association of Beverage Retailers       P.O. Box 3842, Topeka, KS  66604      Email KABR  

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