TOPEKA, Kan. (AP) — Kansas legislators have advanced a proposal that would help the state a little with its budget problems by closing sales tax exemptions while promising a future reduction in the tax on groceries.
The House gave first-round approval to the measure Friday on a voice vote. It expects to take a final vote Monday.
The measure would raise $115 million over the next two years by applying the state’s 6.5 percent sales tax to a few services such as towing, security, pet boarding and non-residential cleaning.
Kansas faces projected budget shortfalls totaling $887 million through June 2019. The bill would lessen the need to increase other taxes.
But new revenue would be offset starting in July 2020 by a reduction in the sales tax on groceries to 6.4 percent.