By STEVEN HOWE
State Representative (R-71st District)
Last month, the governor vetoed a bipartisan tax reduction bill (SB37), expressing concern about the long-term costs of sustaining a lower tax structure. The governor then called for a special session of the Legislature to reconsider a revised tax plan, Senate Bill #1, which was agreed upon in advance by the governor, House and Senate leadership.
Yesterday, I was in the Capitol for this much-anticipated special session. Both sides of the aisle were told that we needed to pass a “clean” bill without amendments otherwise, it might result in another veto from the governor.
We were told this was the best we could do in light of the governor’s veto pen.
I joined a super-majority of legislators in the Kansas House passing SB 1 by a margin of 121-2. The Senate passed the same legislation 34-4 and now it goes to the governor for her signature.
This tax reduction bill does the following beginning in tax year 2024:
⦁ Fully exempts Social Security income from Kansas income tax
Restructures individual income tax brackets and rates to provide for a two-bracket system (5.58% and 5.2%.)
⦁ Increases the standard deduction amounts from $3,500 to $3,605 for single filing status, $8,000 to $8,240 for married filing status and $6,000 to $6,180 for head-of-household filing status.
⦁ Increases the personal exemption allowance amount, currently set at $2,250 for all persons on the return, to $18,320 for married couples filing jointly, $9,160 for all other filers, and an additional $2,320 for each dependent listed on the return.
⦁ Abolishes the Local Ad Valorem Tax Reduction Fund and County and City Revenue Sharing Fund.
⦁ Increases the amount of residential property exempt from the statewide uniform school finance levy to $75,000 of appraised value.
⦁ Increases the tax credit for household and dependent care expenses from 25 percent to 50 percent of the federally-allowed amount.
⦁ Reduces the privilege tax rates applied to financial institutions (for banks it goes from 2.25% to 1.94%) (for trust companies and savings and loan associations it goes from 2.25% to 1.93%).
⦁Excludes Section 1031 exchange sales from being considered valid sales for property valuation purposes.
While many of us wish we could have done more, some tax reduction is better than nothing at all. In order to further reduce taxes in future years, the Legislature and governor need to get serious about reducing state spending, which has seen exponential growth in recent years.
Lastly, during the special session, legislation (HB 2001) was introduced and passed in both chambers to lure a professional sports team, NFL and MLB, to Kansas. Both the Royals and Chiefs are considering their options in light of a sales tax proposal being defeated by voters in Jackson County, Missouri in April of this year. While I think highly of the Royals and Chiefs, and I have enjoyed their successes over the recent years, I voted against HB 2001.
Essentially, I do not think it is the role of the state government to be involved in incentivizing the construction of luxurious sports stadiums, especially when many people cannot afford to enjoy a game or concert. The National Conference of State Legislatures (NCSL) published an informative report on this subject, which I will share a link to here.
In this report it states, “For the past several decades, cities and states have subsidized the construction of new sports facilities. However, consensus among economists and other experts is that sports stadiums do not offer a positive return on investment.”
I would encourage everyone who is interested in this issue to read this informative report.
Moreover, according to recent news reports, the Chiefs and the Royals, they hired 35 lobbyists to blitz legislators leading up to the special session with phone calls, meetings and even steak dinners, as reported by the Kansas Reflector.
No wonder people are disillusioned with politicians. Fast-tracking legislation like this confirms people’s suspicion that special interests rule the agenda in Topeka and that the government is overrun by people with deep pockets.
Luckily, and for everyone's sake, the Legislature is now adjourned until January 2025. Ultimately, the vitality of our republican model of government rests on your participation. Each election year, the people of Kansas consent to the kind of government they want. Please do not sit on the sidelines this election year. Ask questions, do your research, meet the candidates, attend a forum, and most importantly - VOTE!
The views and opinions expressed in this editorial article are those of the author and do not necessarily reflect the official policy or position of Salina Post or Eagle Communications. The editorial is intended to stimulate critical thinking and debate on issues of public interest and should be read with an open mind. Readers are encouraged to consider multiple sources of information and to form their own informed opinions.