40th District State Senator Ralph Ostmeyer’s report from Topeka.
The Kansas legislature is rapidly approaching the second major deadline of the 2013 session. Within the next week, we will need to consider all major pieces of legislation we want to consider this session –such as the budget and tax proposals. Next week is the last week most committees will meet to consider legislation for the session. For any remaining bills to be considered by the full Senate before regular session ends on April 5, they will need to pass out of committee by Friday, March 22.
The march to zero (HB 2059)
Last Thursday, the Senate passed the Governor’s proposal to ratchet down the state’s income taxes over the next five years – completely eliminating income taxes for all Kansans in tax year 2018. The measure, that was consider during committee of the whole on Wednesday, also makes technical changes to last year’s tax bill which lowered state income taxes this year for joint and single filers and also eliminated non-wage income tax for small business owners across the state.
HB 2059 makes a number of adjustments to Kansas’ current tax code. Most notably, the bill adjusts the state’s income tax rates and severance tax provisions, and freezes the currents sales tax rate at 6.3 percent in order in order to lower income tax rates which benefits all Kansans.
Along with the reduction of the individual income tax, an amendment was offered that will phase out all state tax deductions, with the exception of the adoption tax credit and charitable contributions tax credit. In the first year, itemized deductions will be reduced by 24 percent, 41 percent 2014-2015, 65 percent in 2016 and 94 percent in tax year 2017. It should be noted, an average of 70 percent of Kansans use the standard deduction and will not be impacted in any way by the elimination of itemized deductions and changes to itemized deductions at the state level do not impacted federal itemized deductions, which are much larger and still available to eligible Kansans.
Last year, the tax plan signed into law, reduced the three income tax brackets to two, and lowered income tax rates to 3.0 percent for the lowest income tax earners and 4.9 percent for the highest income tax earners. Kansans will see tax relief from HB 2059 starting next year. The bottom bracket filer’s rates will reduce to 2.5 percent and further slash the tax earner’s income rate to 1.9 percent in 2016. Top tax bracket earners, individuals making more than $50,000 a year, will see a reduction of their tax rates from 4.9 percent to 3.5 percent beginning in 2017. After 2017, any state general fund growth over 4 percent will be used to further buy down the income tax rates for filers.
HB 2059 also made some technical fixes to the bill passed during the 2012 legislative session. These changes will not amend current state policy but clarify references to certain federal forms and payment schedules, and will adjust provisions relating to itemized deductions and the food sales tax rebates program. The bill also corrects certain statutory references within the Kansas income tax code. The specific changes are listed below:
- Repeal a requirement on taxpayers who are partners or Subchapter S corporation shareholders to compute a different adjusted basis for their partnership interests or Subchapter S stock for Kansas income tax purposes than they do for federal income tax purposes.
- Clarify that for Kansas income tax purposes, the add back to federal adjusted gross income required of certain losses for Subchapter S corporations would not apply to those entities with wholly owned subsidiaries subject to the financial institutions privilege tax.
- Clarify the 50-barrel-per-day threshold enacted in 2012 relative to being excluded from the new pool severance tax exemption for oil and would be determined based on the initial six months of production from each well.
As promised, the Senate has remained committed to providing further tax relief for Kansans and to creating a competitive business environment in our state. The private market is where true job creation is made and, in order for Kansas to be competitive, state government must leave more of Kansan’s hard-earned money in their pockets. For too long Kansas’ high taxes have driven businesses to other states where there is little or no state income tax –like Texas and Florida.
On Thursday, March 14, 2013 the Kansas Senate passed HB 2059 by a vote of 21-19.
Protecting tax payer’s dollars (HB 2022)
HB 2022, also known as the paycheck protection act, would ban state or other units of government from making payroll deductions for members of public sector unions for the purpose of contributing to the union’s political action committee (PAC). Currently, unions negotiate the amount and frequency of the deduction with government entities. The money from the deduction is contributed to the PAC, but in many cases the member is not given the ability to specify how the deduction is then used.
While the bill would eliminate the option for the payroll deduction, it is important to note members are not prohibited from contributing to their union’s PAC. If a member wishes to make a contribution to a PAC, he or she would need only to write a check noting it as a PAC contribution. It would also be permissible for the member to set up an electronic transfer from his or her bank account to the PAC fund. This protects union members from any self-imposed or peer pressure to check a box allowing a payroll deduction and, therefore, better ensures each member is making a free and deliberate decision to contribute to union political activities. Furthermore, it not only is unnecessary, but arguably also inappropriate, for the state or any other local unit of government to be in the business of making payroll deductions for political purposes.
The bill also includes amendments to the wage payment act which permits employers to withhold a portion of an employee’s wages if they have loaned them money, over paid their salary or withholds any merchandise or uniforms purchased by the employee. The provision also allows employees to withhold a portion of an employee’s final wages if the employee does not return property belonging to the employer; repay a loan or advance the employee made to the employer; an overpayment for payroll; or replacement of an employer’s merchandise, uniforms or equipment lost or damaged by the employee.
The bill further revises current Professional Negotiations Act and Public Employer-Employee Relations Act (PEERA) by redefining and restricting all partisan or political employee organizations (PEO’s). Additionally, HB 2022 will prohibit PEO’s from negotiating with boards of education regarding the terms and conditions of professional services or from deducting dues from member’s paychecks for partisan or political activities. If a public employee wanted to spend money for partisan or political purpose then they would need to ensure member’s contributions were voluntary.
On Thursday, March 14, 2013 the Kansas Senate passed HB 2022 by a vote of 24 to 16.
Judicial selection update (HB 2019)
A few weeks ago, the Senate passed SCR 1601 –a measure that would amend the process of how Kansas Supreme Court Justices and Kansas Court of Appeal judges are selected. Following the first major deadline of the legislative session, known as turnaround, the House sent us their version for changes in judicial selection –also known as HB 2019. HB 2019 includes the same provisions as SCR 1601 except it would not require a ballot vote by Kansans in the next major election to amend the Kansas Constitution.
HB 2019 will, however, will still allow for the gubernatorial appointment and Senate confirmation of judges. The bill is now on its way to the governor’s office and will be the first bill signed into law this session.
On Thursday, March 14, 2013 the Senate passed HB 2019 by a vote of X 28 to 12.
Gun control advocacy with state appropriated money (SB 45)
SB 45, if signed by the governor, would prohibit the use of tax payer’s dollars for gun control advocacy purposes. Specifically, the bill ensures that public money is not used to put the rights of law-abiding gun owners in the crosshairs of an agency with a political agenda. SB 45 preserves the rights of taxpayers and enforces that public funds are not used to pursue a political agenda against legal products.
SB 45 will now advance to the Kansas House of Representatives for further action.
On Wednesday, March 13th the Senate passed SB 45 by a vote of 32 to 8.
Enforcing laws on rape criminals (HB 2252)
This week the Senate considered HB 2252, a bill that would eliminate the statutes of limitations for the prosecution for rape or aggravated criminal sodomy. The bill will also allow for the prosecution of a sexually violent crime to commence within ten years of when the victim turns 18 years old or older. Prosecution of a sexually violent crime would now be allowed to commence within one year of the date the identity of the suspect is conclusively established by DNA testing, or within ten years of the date the victim turns 18 years of age, whichever is later. The Senate passed the measure on Thursday, March 14th by a vote of 40 to 0.
HB 2252 will now be sent to Governor Brownback to be signed into law.
Crimes against sexual exploitation of a child (HB 2081)
HB 2081 is another bill that would amend current criminal law statutes add an additional list of offenses for individuals convicted of solicitation of a child, aggravated indecent solicitation of a child and sexual exploitation of a child. The bill also specifies that authorities could retain any computer, computer system, computer network or any software or data owned by the defendant. In current law, these items are only provided if used during the crime; this also include electronic devices used by the suspect.
On Thursday, March 14, 2013 the Senate passed HB 2081 by a vote of 40 to 0. The bill will now be sent to the governor for his signature to enact into law.
2013 Session Dates and Deadlines
Please be aware of the following dates and deadlines for the 2013 legislative session. As always, each is subject to modification and leadership will keep you updated on any changes which might occur.
- Fri. March 22 Last day for bills to be considered by non-exempt committee
Last day for non-exempt committees to meet
- Wed. March 27 Last day for non-exempt bills in either chamber
- Thurs. March 28 No session
- Fri. March 29 No session
- Fri. April 5 Drop dead day, first adjournment
- Wed. May 8 Veto session begins
- Wed. May 23 Day 90
The Fort Hays State softball team moved up 10 spots in the most recent NFCA Division II Top 25 Poll, released on Wednesday, March 20. After jumping into the national rankings for the first time in school history last week at No. 21, the Tigers soar up the poll after going 6-0 on the road last week.
