Kansas House Republicans unveil new dual-rate tax plan a week after Senate passes flat tax
Kansas House Republicans introduced a two-rate tax plan less than a week after the Senate passed its own single-rate plan last Thursday.
Both chambers passed a version of the flat tax earlier in the session but failed to gain enough votes to override a veto by Gov. Laura Kelly.
Senate Republicans took a second swing at a single-rate tax, often called a flat tax, last week with Senate Bill 539. It passed with a veto-proof majority if legislators maintained their votes, but at least two of the legislators who signed on have expressed doubts about a single rate.
House Speaker Dan Hawkins, R-Wichita, said there are also issues getting to a two-thirds majority in the House as well at a news conference on Tuesday. The flat tax has been a top priority for Kansas Republicans but also a barrier with the stark opposition of the governor.
“I am probably the most steadfast person on wanting a single rate tax," Hawkins said. "We started talking about it clear back last year, and really, this whole year we worked towards that direction. But you can only do what you have votes for. And it became very evident to me. We're not going to get to an override vote.”
Rep. Adam Smith, chair of the House Tax Committee, summarized the bill, which isn't yet released. Currently, individuals pay 3.1% on income between $5,000 and $15,000, 5.25% on incomes between $15,000 and $30,000 and 5.7% on all income over $30,000.
The House bill would eliminate the lowest bracket and reduces the rate by 0.05% for the other two brackets.
The bill also mirrors prior tax plans but with small tweaks. Its provisions include the following:
Increasing the standard deduction and personal exemptions by 3% and tying it to inflation.
Phases out income tax on Social Security payments over four years.
Exempts the first $80,000 in property from statewide property taxes and tying it to inflation.
Reduces the mill levy to 18 mills.
Repealing local ad valorem tax reduction fund — a statewide property tax that is distributed to county governments that the state hasn’t paid for two decades — and the City County Revenue Sharing fund.
Smith said the bill is going to be fast-tracked, with a committee hearing on Wednesday before it’s debated on the house floor.
This article originally appeared on Topeka Capital-Journal: Flat tax is out in Kansas House, as leaders introduce dual-rate plan
