The Kansas House on Friday voted to override Democratic Gov. Laura Kelly’s veto of a sweeping tax package, which would eliminate one of the state’s income tax brackets, that she called too expensive.
Numerous Democrats joined Republicans to overturn the veto in a 104-15 vote. The override now heads to the Senate, where the legislation originally fell three votes shy of a veto-proof majority.
The annual cost to state revenues under the vetoed plan is estimated at $635 million the first year and roughly $460 million each year after. Kelly has generally held that the annual ongoing cost of tax cuts shouldn’t exceed $425 million.
“Kansans need tax relief and revenue estimates tell us it’s time to make that happen. With this significant vote of 104 to 15 to override the Governor’s misguided veto, we’re closer than ever to delivering broad and sustainable property, income, Social Security, and food sales tax relief to all Kansans,” House Republican leaders said in a statement that also thanked Democratic lawmakers.
State officials last week released revenue projections that show Kansas is expected to collect $146 million – or 1.4% – more than previously anticipated during the next fiscal year, which begins in July. While officials now expect the state to collect about $100 million less during the current fiscal year than previously projected, collections are still expected to surpass the previous year by nearly 10%.
Legislative researchers estimate that with the tax package, Kansas will end the next fiscal year with a $1.9 billion ending balance and an additional $1.7 billion in a rainy day fund. Still, the state would run a $705 million deficit for the year, according to estimates.
When Kelly vetoed the bill earlier this week, she said should couldn’t “sign into law a bill that jeopardizes our state’s future fiscal stability.”
The legislation vetoed by Kelly would tax the top bracket at 5.55% and 5.15% for the bottom bracket, with $23,000 taxable annual income serving as the dividing line between the two rates. For married couples, that dividing line would be $46,000.
The proposal would raise the personal exemption allowance amount so that each dependent would qualify for an additional $2,320, while raising the allowance from $2,250 for all taxpayers to $18,320 for married couples and $9,160 for all other taxpayers.
The measure also eliminates taxes on Social Security income, lowers the statewide mill levy for schools from 20 mills to 19.5 mills and accelerates the elimination of the state sales tax on food to July 1, six months ahead of current law.
The House originally passed the tax package unanimously. Friday’s vote represented a rare instance of Democrats largely breaking with Kelly.
“My constituents have been waiting on tax cuts for years. I owe them honesty and consistency, and I am willing to be accountable for my support of this bill at the doors and the ballot box,” Rep. Stephanie Sawyer Clayton, an Overland Park Democrat, wrote on social media.
Rep. Mari-Lynn Poskin, a Leawood Democrat, urged lawmakers to oppose the override. “We have room to trim this overall package and deliver on the most-demanded tax cuts,” Poskin said.
Kelly has called on lawmakers to adopt an alternative tax plan. Her plan would maintain the state’s current three income tax brackets but lower each rate. It would also raise the standard deduction, personal exemption and child care tax credit for dependent care expenses.
It also includes eliminating state taxes on Social Security income and exempting the first $125,000 of all homes from the statewide property tax levy.
Amanda Smith is a dedicated U.S. correspondent with a passion for uncovering the stories that shape the nation. With a background in political science, she provides in-depth analysis and insightful commentary on domestic affairs, ensuring readers are well-informed about the latest developments across the United States.
