Kansas state Sen. Carolyn McGinn, R-Sedgwick, said she will recommend an early end to most of a 1% hike in the sales tax approved in 2010.
The Legislature raised the tax to 6.3% from 5.3% due to a decline in state revenues during the recession. The tax was set to roll back to 5.7% on July 1, 2013, but McGinn will propose a reduction to 5.7% on Jan. 1, 2013.
The tax increase included a permanent 0.4% levy with revenues dedicated to Kansas Department of Transportation.
McGinn, chairwoman of the Kansas Senate Ways and Means Committee, said recent monthly increases in revenue indicate the tax increase has served its purpose.
“Our revenues are coming back, and I feel like as a Legislature we should fulfill our promise and make sure it ends,” she said. “If we can do that six months earlier, then we should.”
McGinn said the early removal of the state tax hike would allow local communities to increase their tax. Gov. Sam Brownback is expected to announce a school funding plan that relies on local sales tax to compensate for lower state aid.
“You should not have a sales tax that was intended to be temporary to fix a problem because of our recession to remain on in the event that local government needs that tool for their own communities,” she said.
Brownback spokeswoman Sherriene Jones-Sontag said the Republican governor may outline his own school funding plan at a state of the state address on Jan 11.