The Legislature’s tax debate wasn’t all that exciting because, well, it’s a tax bill and it is complicated and technical. So, the excitement starts now.

Key is that both the Republican-controlled House and Senate have agreed to the major income tax cut provisions of the bill. The Senate baked the cake, with about $187 million in income tax cuts this year, about $50 million for individual income taxpayers and about $137 million for corporate income taxpayers. Next year, the ratio changes, with some individual Kansans seeing about $60 million in cuts, corporations about $51 million in cuts.

And when that cake got to the House, well, it got frosted. The House added a 1 percent cut in the state sales tax on food (from 6.5 percent to 5.5 percent) which will cost the state about $43 million in lost revenue next fiscal year and about $66 million in lost revenue (or, kept by food buyers), partially paid for by a new Internet sales tax, which might bring in about $21 million next year and maybe $33 million a year after that.

The next thing to happen will be when the Senate decides whether it wants that appealing frosting. We all want to pay less sales tax on the food or anything we buy, and those local stores don’t want Internet sellers to not have to collect Kansas sales tax that they have to charge customers, which costs them customers.

Now, part of the House’s frosting looks better than it’s actually going to taste. Dropping the sales tax on food (starting Oct. 1) is going to leave a little more change in Kansans’ pockets. And the guy buying steak gets the same percentage cut as the guy buying bologna. Hard to tell whether either will notice the sales tax cut, but the provision is probably worth mention on a campaign palm card.

And everyone who has a store is by this time tired of customers saying they can get stuff cheaper over the Internet…especially without a 6.5 percent sales tax added in as local stores must.

So, watch for the Senate to decide next week whether to negotiate those food and Internet taxes, or just OK them, and vote to send the bill to the governor.

Next after that?

It’ll be the governor likely vetoing the bill because it will upset her budget, and because nobody’s really sure yet just what that federal tax cut /expansion “trickle down” is going to mean to state revenues. Lots of guesses, lots of charts and tables and explanations, but the Department of Revenue hasn’t actually counted the dollars in additional revenue that federal tax cut will send to Kansas.

While the House and Senate stand for reelection next year, Gov. Laura Kelly’s got nearly four years to figure out how to pay for basic state responsibilities: schools, highways, possible expansion of Medicaid, pension, roads… She needs revenue to pay for all the things Kansans want and need from their government.

And next after that?

It’ll be the House and Senate trying to override the veto. The House passed the bill 76-43, and in that chamber, it takes 84 votes to override a veto. The Senate earlier passed the (un-frosted) bill 26-14, just one vote short of the 27 needed for an override.

And next after that? If it becomes law, we’ll see how House and Senate candidates tout it.

One Republican already has calculated that a 1 percent drop in the sales tax is—ready?—a 15 percent cut in the sales tax on food…

Syndicated by Hawver News Company LLC of Topeka; Martin Hawver is publisher of Hawver’s Capitol Report—to learn more about this nonpartisan statewide political news service, visit the website at www.hawvernews.com

By GLENN BRUNKOW
Pottawatomie County Farmer and Rancher

Kansas Farm Bureau turns 100 this year, and 100 has never looked so good. A lot has happened in the century KFB has been around. We have seen agriculture transition from horse-drawn equipment to modern tractors and combines that virtually drive themselves. We have gone from being an agrarian society to one where less than 2 percent of the population is involved in production agriculture. All of this is mind boggling, and I am sure beyond the imagination of the farmers and ranchers who laid the foundation of our organization.

I often try to put myself in the boots of a founding member. What was their mindset? What did they hope to accomplish? What was their vision for the fledgling farm organization? Kansas Farm Bureau was started to address concerns about commodity prices, new technology and transportation. Issues that are still at the heart of many of our discussions today.

I am sure the founding members of Kansas Farm Bureau would never have imagined their start-up would grow to become the biggest and most influential general agriculture organization in Kansas. One that has a strong voice in making the lives of its members better through legislation in Topeka and Washington, D.C. I doubt if their vision saw KFB becoming the leader in agriculture education and advocacy, and the amazing things its members do to promote the food and fiber we all produce.

I would imagine they saw the need to bring farmers and ranchers together to have a combined voice — one that could speak for all producers. They saw the need for the agriculture community to band together because as a group we are stronger than we are individually. Kansas Farm Bureau was created to improve the lives of the men and women who poured their blood, sweat and tears into the land they were entrusted with.

Over the years Kansas Farm Bureau has met the challenges, changing with the times and going the extra mile to meet the needs of its members. KFB has been there for the farmers and ranchers through droughts, floods, fires and other disasters. It has championed the cause of agriculture in the legislature making sure the voices of its members were heard.

The issues may have changed. I doubt if the founders could have envisioned defending new technology to the public or fighting for better health care coverage in rural Kansas, but the heart of Kansas Farm Bureau has remained true over the past century.

One hundred years is truly a milestone, but it is not the final one. Over this centennial year we will look at the future of Kansas Farm Bureau, and I hope we will approach it with the same vision, hope and passion that the founding members had when they came together. It is important we celebrate our past, but it is more important that we have a vision for the future.

It is my hope that when Kansas Farm Bureau celebrates its 200th birthday in 2119 the members will look back on us with the same admiration and appreciation that we have for the charter members. Yes, we have accomplished so much in 100 years, but rest assured there is much more work to be done in the next 100. It’s time to cut the cake and celebrate because 100 looks pretty good. Here is to 200 looking even better.

“Insight” is a weekly column published by Kansas Farm Bureau, the state’s largest farm organization whose mission is to strengthen agriculture and the lives of Kansans through advocacy, education and service.

All Day In The House

On Tuesday, March 5, 2019, while we were still on break, I received many emails and messages regarding House Bill 2228.  This bill amends the current laws regarding the operation of a child care facility where the said operator must require written notice if they are operating the facility without a license. This bill also establishes civil fines for operating a child care facility without a license, addresses the health, safety, and sanitation of children in a child care facility.  The bill also provides for appeal rights for operators aggrieved by an order from the Secretary of Health and Environment regarding civil fines.

House Bill 2228 would require the Secretary to provide a written notice to the operators of a child care facility without a license that a required license is state law.  If the operator continues to operate without a license after being notified they then must supply one, or the Secretary can impose civil fines on the operator.  There are some exceptions where a license will not be required, those being, children provided care in the home they reside in, children who are relatives of the person, and up to two children, unrelated, for not more than twenty hours a week.

Prior to our leaving for turnaround, this bill passed out of the committee of Children and Seniors.  Now we wait for a vote on the House floor.

Fiscal Leaders Meeting

For the past four years, I have been invited and will be a participant in the National Conference of State Legislatures Midwest States Fiscal Leaders Meeting.  The topics vary greatly from year to year, and this year is no exception.  On Friday, March 8, the discussions focused on the economic impact of agriculture in the Midwest, geographically targeting economic development incentives, sharing state experiences regarding Medicaid waivers, and the final segment for that day focused on the top fiscal issues in each of our states.  Saturday, March 9, the scheduled discussion was on who is “footing the bill” for higher education, stress testing our state budgets, and the changing of state tax structures.  I enjoy attending these meetings each year to discuss and listen to the array of differences and similarities we have in our Midwest region.

Tax Bills on the Floor this Week

Thursday, we debated two tax bills on the House floor.  The first, House Bill 2160, allows for sales tax authority for Wabaunsee county, was the less controversial bill that we debated that day.

Senate Bill 22, otherwise referred to as the “Windfall” tax bill was the second bill we debated.  As you may recall, the windfall derives from the recent changes in federal tax law where Kansas taxpayers must take the standard deduction on the state income tax return if they take the standard deduction on the federal return.

Some contend that this may eliminate the opportunity for Kansans with itemized deductions below the federal standard deduction, to itemize on the state return.  By amending the tax code, or decoupling from the federal tax law, we would allow taxpayers to itemize or take the standard deduction on the state’s returns.  This bill passed the Senate, 26-14 and the House Tax Committee added an internet sales tax and used that tax to buy down the sales tax rate on food.  The bill passed to final action, 80-42, and I voted “yes.”

Contact Information

As always, if you have any concerns, feel free to contact me (785) 296-7672, follow on twitter at @waymaster4house, visit www.troywaymaster.com or email me at [email protected].  Also, if you happen to visit the statehouse, please let my office know.

It is a distinct honor to serve as your representative for the 109th Kansas House District and the state of Kansas. Please do not hesitate to contact me with your thoughts, concerns, and questions.  I always appreciate hearing from the residents of the 109th House District and others from the state of Kansas, as well.