Kansas Gov. Laura Kelly calls special session for tax cuts. Here are details on when
The Kansas Legislature will begin a special session on June 18 focused on tax cuts, after Gov. Laura Kelly earlier this month vetoed the latest bipartisan package over concerns about its size.
The Democratic governor announced the date of the special session on Wednesday, saying she was committed to working with the Legislature “to deliver responsible, sustainable tax cuts for all Kansans.”
The special session comes after months of conflict between Kelly and the Legislature over taxes. While virtually every lawmaker supports some form of tax cuts, Kelly has been at odds with a bipartisan coalition that keeps passing measures the governor says are too expensive.
“A special session provides the opportunity for bipartisan collaboration on comprehensive tax relief that does not threaten Kansas’ solid fiscal foundation. By working together, we can swiftly come to a compromise to put more money back into Kansans’ pockets,” Kelly said in a statement.
Kelly will issue the formal proclamation to convene the Legislature in the coming days, her office said.
The announcement came after Kelly missed a self-imposed deadline to announce the start date of the session last week. A spokesperson on Tuesday said the governor had been in discussions with legislative leaders about the availability of lawmakers for the session.
On May 16, Kelly vetoed a plan that would have cost between $462 million and $472 million a year after a first-year cost of $641 million. Kelly has called for the total cost of tax cuts not to exceed roughly $425 million a year, a limit her aides say includes all tax changes passed by the Legislature, not just this bill.
Top Republican lawmakers have said Kansas can afford $500 million a year. They have sharply criticized Kelly’s decision to call a special session instead of signing the latest tax bill. GOP leaders have emphasized that the bill enjoyed the support of most Democratic lawmakers.
“We’ve been attempting to compromise with the Governor’s office all year so I’m hopeful that she’s finally feeling the pressure to put an end to this and join the overwhelming majority of legislators who are ready to deliver tax relief to all Kansans,” House Speaker Dan Hawkins, a Wichita Republican, said in a statement.
Hawkins has said Kelly’s “games” led to the special session, which will cost about $84,000 a day.
The session comes as lawmakers are eager to campaign in their districts. Every House and Senate seat is on the ballot this year, and lawmakers will face fundraising restrictions during the session.
Lawmakers and Kelly want to demonstrate they can enact tax cuts before the elections. While Kelly isn’t on the ballot, Democrats are aiming to eliminate the Republican supermajorities in the House and Senate.
At this point, the divide between Kelly and lawmakers is centered on where to set income tax rates. Kelly has signaled any compromise will focus on income tax rates, as other changes, such as eliminating taxes on Social Security income, are non-controversial.
The vetoed plan would have moved Kansas from three state income tax brackets to two, which would have provided many taxpayers with a break in the process.
It would have set the top rate for married couples filing jointly at 5.57% and the bottom rate at 5.2%, with $46,000 serving as the dividing line between the two rates. All other taxpayers would be taxed at 5.15% in the bottom bracket and 5.55% in the top bracket, with $23,000 dividing the two brackets.
The plan also contained other less controversial tax changes, including raising the personal exemption allowance for dependents, lowering the statewide mill levy for schools, and accelerating the elimination of the state sales tax on food to July 1, in addition to ending taxes on Social Security income.
Last week a coalition of business and industry groups – including the Kansas Chamber of Commerce, Kansas Farm Bureau and Kansas Association of Realtors – urged Kelly to provide property tax cuts for commercial, industrial and agricultural property.
“Under this approach, money would remain available for you and the legislature to pursue income tax relief, whether that occurs during the special session or next session,” the groups wrote in a letter to the governor.
The special session also reopens discussions about attracting the Kansas City Chiefs and Royals into Kansas. While the session will focus on taxes, lawmakers may pass legislation on any subject.
Some proposals that didn’t pass earlier this year may be resurrected, including a measure to lure the Kansas City Chiefs and Royals into Kansas by issuing controversial STAR – sales tax and revenue – bonds.
This story was originally published May 29, 2024 at 10:46 AM with the headline "Kansas Gov. Laura Kelly calls special session for tax cuts. Here are details on when."
