Proposal would reduce Kansas' income, sales tax

TOPEKA | A proposal in a Senate committee could become a comprehensive tax reform package to bring balance to Kansas’ tax system.

The bill would eliminate the sales tax on food, eliminate most of the current sales tax exemptions, and reduce the state sales tax by 1 percent. Lowering the state sales tax would make the rate 5.3 percent, which would repeal the 2010 tax increase.

Sen. Kelsey, a Goddard, Kan., Republican, said the bill would make Kansas’ tax system more fair. He said sales tax exemptions should be the same across the board.

“If an exemption is legitimate then everybody should get it,” he said. “If it’s only for one group and not for another and they do the same thing, that’s not fair.”

S.B. 98 would also reduce the individual income tax as well as eliminate the corporate income tax in a two-year period. Legislative researchers said the state would be financially able to decrease sales tax and income tax by taxing all services except those specifically exempted by the bill.

However, Kelsey said he didn’t expect the bill to move forward during this session.