Kansas lawmakers report deal reached for tax relief package

TOPEKA, Kan. (WIBW) - Kansas lawmakers say they’ve reached an agreement with the governor on the much-debated tax relief package that missed this year’s Legislative deadline.

Leaders of each chamber, Senate President Ty Masterson and House Speaker Dan Hawkins issued a joint statement Thursday night affirming the agreement with Gov. Laura Kelly.

They say saving Kansans some money has been a primary focus of the Legislature with inflation on the continuing rise.

“For over a year, the legislature has been laser-focused on easing the burden of inflation by letting taxpayers keep more of their hard-earned money by passing multiple broad and sustainable tax relief plans. We firmly believe the surpluses belong to the people, not the government. While the Governor’s veto pen prevented more substantial income and property tax relief, this agreement is an important first step that lowers taxes today for the people who need it the most while also eliminating the LAVTR slush fund. On Tuesday, we will act swiftly to pass this compromise - and look forward to resuming our efforts to pass additional tax relief when we return in January.”

The deal is much the same as the one passed multiple times toward the end of the Kansas Legislature’s session this year. The package implements a two-bracket tax code, cuts the tax on social security, and includes multiple exemptions like the property tax cut.

Those were all vetoed by the governor. This deal has a few minor changes, according to Sen. Masterson and Rep. Hawkins, that got Gov. Kelly’s approval. Gov. Kelly had said her biggest sticking points were the long-term costs she viewed as unsustainable. She confirmed the deal in a statement as well, saying it gets Kansans the relief they need without seriously compromising the state’s future.

“Legislative leadership and I have come to a consensus on a tax relief package that will be presented to the House and Senate during the upcoming special session. This agreement allows significant, long overdue tax relief to Kansans while preserving our ability to invest in the state’s future.

This agreement is not without its flaws. The movement from a three-tiered to a two-tiered income tax structure limits the amount of property tax relief that can be provided to Kansans. However, it does meet the affordability criteria I proposed. Thus, should the Legislature pass this negotiated agreement, I intend to sign it.”

Senate Democratic Leader Dinah Sykes said it is good to finally move forward.

“Compromise is ugly sometimes. While this proposal is not what we fully wanted, in the spirit of compromise it moves us forward. Senate Democrats will continue to fight for more property tax relief and child care relief, things we know our constituents truly want and need.”

The Legislature is scheduled to return June 18 for a special session called to work on the deal. The lawmakers said the new changes should get this bill signed into law fairly quickly once that meeting starts.

There have been reports lawmakers would also discuss their efforts to approve STAR bonds designated to pull the Chiefs and Royals over state lines at the meeting. The meeting will cost the state about $84,000 per day.

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