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Negotiators In The Kansas Legislature Reach Tax Compromise

Stephen Koranda

Kansas House and Senate negotiators have reached a preliminary tax compromise to close a budget gap. It would raise the sales tax and cigarette taxes while reducing tax deductions.

The bill would raise around $430 million next fiscal year.

Republican Marvin Kleeb, House Tax Committee chairman, says he isn’t sure the bill will pass, but it’s a starting point.

“We need to have members get up and speak their mind and let us know where they stand, what they like and don’t like, so when we come back again we’re able to craft another solution to propose,” Kleeb says.

The plan freezes personal income tax rates for the next three years, canceling some scheduled reductions.

The legislation would also add taxes on one type of business income that's currently exempted. The proposal leaves other business income tax cuts in place.

The Kansas House is planning to debate the bill later today.