By Trish Svoboda
On April 25th, Governor Laura Kelly unveiled a new proposal for tax reductions, inviting the Legislature’s deliberation upon their return to the Statehouse later this week.
The proposal from Governor Kelly is $433 million annually, including the provisions of House Bill 2098 and Senate Bill 96. This proposal is significantly more economical compared to the $520 million package the Legislature presented, which included all proposed tax bills. The legislative package lacked the inclusion of the child care tax credit, a crucial element for Kansas families.
The plan put forth by the governor trims the total expenses of these proposals by close to $90 million annually, while guaranteeing substantial and all-encompassing tax relief for all taxpayers.
The governor’s plan advances the removal of the state’s sales tax on groceries, setting the date for this change as July 1. It retains the existing three tax brackets but reduces the rates for each. The plan also enhances the standard deduction, personal exemption, and the child care tax credit for dependent care expenses. It proposes the immediate eradication of state taxes on all Social Security income. Lastly, it offers a reduction in property taxes for Kansans by exempting the first $125,000 of all homes from the statewide property tax levy.
