Quantcast
Regional News

Brownback's plan advances

Floor debate may begin as early as this week on Gov. Sam Brownback’s plan for tax code after the Senate Assessment and Taxation Committee quickly approved most of the provisions last week.

The committee rejected eliminating the state income tax deduction for local residential property taxes the governor wanted, but retained a sales tax increase that was to expire July 1.

The panel also approved Brownback’s proposal to do away with the income tax deduction for interest on home mortgages.

The House tax committee is not expected to consider the measure for another week or more.

The Kansas Legislative Research Department said the bill approved by the committee would increase state revenues by $950 million over three years. Most of the revenue would be generated by retaining the current state-sales tax rate of 6.3% rather than allowing it to drop to 5.7% at the beginning of fiscal 2014, as scheduled.

Elimination of the property tax deduction is expected to bring in almost $200 million over three years.

The home interest deduction costs the state an estimated $160 million each year.

Brownback’s five-year tax plan would cut the state’s lowest income-tax rate from the current 3% to 1.9% by fiscal 2016. The rate was lowered by the 2012 Legislature, along with a reduction in the top rates to 3.9% from 6.25% and 6.4%.

JOIN THE DISCUSSION

SEE MORE IN

RELATED TAGS

Kansas ,
Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

Upcoming Events

Already a subscriber? Log in here
Please note you must now log in with your email address and password.