Volume 2014, Issue 9 (March 10-14, 2014)
-In this issue:
-From the Statehouse
-Could the Local Ad Valorem Tax Refund Be Restored?
-Homestead Tax Refund Fix
-Charitable Raffle Constitutional Amendment
Keep in Touch
From the Statehouse
We returned this week expecting to be busy with school finance but it
looks like the House Appropriations Committee will be working on it all
next week instead. The House debated and voted on only a few bills this
week.
Could the Local Ad Valorem Tax Refund Be Restored?
The House debated and voted on a few tax bills this week including
HB2542 that would make amateur built aircraft used only for recreation
tax exempt. The carrier of the bill explained that there is a company
in Hays, KS, producing airplane kits that people can purchase to design
and build their own aircraft. Current law already exempts antique
aircraft and aircraft used for commercial purposes.
During the course of the debate on HB2542, an amendment was proposed and
adopted on a 102 to 17 vote to restore the Local Ad Valorem Tax Refund
fund. This is a fund that was created by statute in 1938 to help local
governments keep property tax down. It is a percentage of the State
Sales Tax that is offered to local taxing authorities. In order to
accept the funds, they must lower the property tax mill levy. The
LAVTRF had been funded every year until 2004 when the legislature
decided to ignore the law and did not appropriate funds. If this
amendment makes it to the Governor's desk and is signed, it would
return $54 million to Kansas counties. Leavenworth County would receive
approximately $1,081,000 to lower property taxes in 2016.
Homestead Tax Refund Fix
The legislature is still cleaning up issues with the Kansas income tax
cut law of 2012. This year as Kansans started submitting their tax
returns for 2013 under the new Kansas income tax code, the Department of
Revenue realized that many business owners that are organized as an LLC,
Single proprietorship, etc, may now qualify for the homestead exemption
credit. The purpose of the homestead exemption credit is to assist low
income households with owning their own home. To qualify for the Kansas
credit, a person must be over 55 years old, make less than $22,100 a
year, and own their home. As business owners do not pay taxes on their
income anymore – many now qualify. SB265 will correct this oversight
by considering their business income when figuring the homestead
exemption credit.
During the debate in the House, an amendment was offered to reinstate
the adoption tax credit that was repealed in the 2012 income tax cut
bill. No one offered any opposition so it is now part of SB265. There
was also an attempt at an amendment to reinstate the homestead exemption
credit to renters, but it failed by a vote of 43 to 76.
Raffle Constitutional Amendment
In the next election you may see a constitutional amendment on the
ballot. The amendment would allow nonprofit organizations to use a
raffle for fundraising purposes. If the measure passed, it would allow
the legislature to make certain provisions to authorize licensing,
conduct and regulation of any charitable raffles by a nonprofit
religious, charitable, fraternal, educational and veterans
organizations.
The constitutional amendment would include a number of limitations which
would prevent loopholes for organizations wanting to raise money for
profit, including: an organization could not use electronic gaming or
vending machines to sell raffle tickets or hire a professional raffle or
other lottery vender to manage the raffle; and all raffles will be
licensed and regulated by the Office of Charitable Gaming with the
Kansas Department of Revenue.
Last year the Governor vetoed a bill that would have removed charitable
raffles from the definition of illegal gambling. The Governor cited the
Kansas Constitution section that prohibits lotteries or the sale of
lottery tickets in his veto message, so the Senate introduced this
Constitutional Amendment. If it passes the House and the Governor signs
it, the question would be on the November ballot. The bill passed the
Senate on a vote of 35-0.
Keep in Touch
It is a special honor to serve as your representative. I value and need
your input on the various issues facing state government in order to
better serve my district and this state. Please feel free to contact me
with your comments and questions or if you want to be removed from my
email list.
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