Governor Kelly Unveils Tax Cut Proposal

By Trish Svoboda

On the first day of the 2024 legislative session, Governor Laura Kelly, along with bipartisan support, unveiled a tax cut proposal aiming to save Kansans over $1 billion in three years. This bipartisan plan, which is different from the other tax plan being proposed, aims to reduce taxes for all Kansans while upholding the state’s fiscal standing, as stated in a news release.

The plan includes an exemption on the initial $100,000 in state property taxes for all homeowners in Kansas. Once implemented, this proposal is expected to result in around $100 million in annual savings for Kansas homeowners.

It would also eliminate the tax on Social Security income, which would result in savings of over $525 million for retired Kansans within the initial five years. It would also increase the standard deduction for residents, saving Kansans over $200 in three years.

This tax reduction package doubles the Child and Dependent Care Tax Credit, which is estimated to bring savings of $18 million to Kansas families over a span of three years.

To alleviate stresses with back-to-school expenses, the proposal provides tax relief on items such as clothing, school supplies, computer software, and computers along with computer supplies. Over a period of three years, this four-day tax-free holiday is expected to result in savings of nearly $15 million for Kansans.

And finally, the tax proposal removes the state’s sales tax on groceries and ingredients, effective April 1, 2024, instead of delaying it until 2025. Additionally, state sales tax on diapers and feminine hygiene products would be eliminated.

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