Kansas House of Representatives
Volume 2013, Issue 16: May 28 – June 20, 2013
In This Issue
- Finally Wrapped Up (Part 1)
- The Tax Plan
- Keep in Touch
Finally Wrapped Up (Part 1)
In the early hours of Sunday, June 2nd, the Kansas Legislature closed
the wrap up session on Day 99 of the 2013 Legislative Session. Since
then Governor has signed conference committee reports of the wrap up
session into law. Thursday, June 20th, was the final day -- the
ceremonial Sine Die, or "official end of the session." Because of
the extent of the changes in tax policy, the budget and other bills, I
am going to give my wrap up report in Parts. This is Part 1 – The Tax
Plan.
The Tax Plan
In the end, the House of Representatives gave in to the Governor's
demand to raise the sales tax. It joined the Senate in passing a new
tax plan on Day 99 of the session and sending it to the Governor's
desk for signature. Included in the final tax plan was a permanent
sales tax increase to 6.15%.
The tax plan cuts the standard deductions on single heads of households
and married filing jointly by $311 million and reduces all itemized
deductions for items such as home mortgage interest and property taxes
paid by an additional $664 million. The only itemized deduction left
untouched was for charitable contributions. There was a partial
restoration of the refundable food sales tax rebate program, which had
been repealed in 2012.
A new series of individual income tax rate cuts per year will be
provided beginning in tax year 2014, when the current bottom bracket of
3.0 percent would be reduced to 2.7 percent, and the current top bracket
of 4.9 percent would be reduced to 4.8 percent. By the tax year 2018,
the top bracket would be further reduced to 3.9 percent and the lower to
2.3. Future income tax rate relief would be based on any revenues that
exceeds the previous fiscal year's levels by 2 percent.
The new sales tax law generates over $777 million in revenue for the
state.
Several bills were added to the tax conference committee report:
- A change to the definition of natural gas for severance tax purposes
by adding helium.
- The addition of an additional 23 counties (generally those with
populations of 15,000 or less) into the ROZ program. That is the Rural
Opportunity Zone program that offers individuals who relocate from
outside of the state to qualifying counties a full state income tax
exemption through tax year 2016, and the opportunity to receive student
loan repayments from those qualifying counties that also have opted to
participate in a special repayment-matching program with the state.
- Repeal of the requirement that the title of certain tax-exempt
property constructed or purchased with the proceeds of Industrial
Revenue Bonds (IRBs) be transferred to the city or county issuing the
IRBs during the duration of the exemption.
- The authorization for counties to grant property tax abatement or
credits to owners of homesteads destroyed or substantially destroyed by
earthquake, flood, tornado, fire, storm, or other event that the
Governor has declared a disaster, taking effect for taxable years after
December 31, 2011, and ending before January 1, 2014.
Keep in Touch
You can track my activities on my website www.meier4kansas.com, my
FaceBook page www.facebook.com/Meier4Kansas, and Twitter
www.twitter.com/melaniemeier. I am privileged and honored to be your
voice in the Kansas Capitol.
If I can ever be of assistance to you, please feel free to contact me at
home or in Topeka. My office is on the 4th floor of the Capitol, Room
451-S. To write to me, my office address is Kansas State Capitol,
Topeka, KS 66612. You can also reach me at the legislative hotline,
1-800-432-3924. Additionally, you can e-mail me at
melanie.meier@house.ks.gov. And do not forget to follow the legislative
session online at www.kslegislature.org.
