2013-16 Budget and Tax Plan Breakdown

2013:
Budget: SB 171 (final version of 2014 and 2015 FY budgets)
Final Action taken March 21, 2013: Passed 24-16

Raised sales tax to 6.3%

Phased down the standard income tax deductions by 24%
Reduced income tax rates from 2.5% to 1.9% and 4.9% to 3.5%
Cuts to the Kansas Board of Regents equaling more than $66
million
Cut $5.6 million from Department of Corrections budget
$2.5 million taken out of the Oil and Gas Depletion Trust Fund (in
Drenning amendment)
$2.5 million cut from animal health research from Kansas State
University
$2 million cut from the Economic Development Initiatives Fund
for aviation infrastructure from Wichita State University
$5 million taken from SGF which would have gone to the
Department for Aging and Disability budget
Cut $4.75 million from Family Centered System of Care
22% cut in funding for Early Childhood Block Grants
Two-year budget; large carryover to next year

Tax Plan: HB 2059

Final Action taken March 14, 2013: Passed 25-14

Eliminated sunset passed in 2010 HB 2360 and imposed statewide sales tax of 6.15%
Divided into six parts separating different income and sales tax
provisions (Pyle motion)
Rate reductions resulted in a $1.1 billion tax decrease
Changes in standard and itemized tax deductions resulting in a
$974 million tax increase
Net result: $126 million tax cut under income taxes
Bill resulted in a tax increase of $777.1 million for Kansas W-2
taxpayers

2014:
Budget: Carryover of SB 171 from 2013

$360 million in funding was restored to the corrections budget

One-time bonus of $250 for 38,000 full-time state employees
$5 million transfer from early childhood education programs to
go towards the Kansas Bio-Science Authority (later line-item
vetoed by Gov. Brownback)
Cut more than $500,000 of the Kansas Creative Arts Industries
Commission budget

Tax Plan: HB 2643

Final Action taken April 4, 2014: Passed 29-8 (three
senators passing)

Amendments to property, motor vehicle, and mortgage

registration tax provisions
Melcher amendment provided property tax breaks to private
health clubs (passed 21-17)
Phases out mortgage registration tax over five years

2015:
Budget: HB 2135
Final Action taken on March 25, 2015: passed 26-13 (one
senator absent)

FY 2015 supplemental funding

FY 2016 and 2017 funding for most state agencies
FY 2015, 2016, 2017 capital improvement expenditures for a
number of state agencies
Allocates $3 million for a consulting service to assist in
examining agency core functions, procedures and efficiencies
Dependent on a one-time transfer of more than $350 million
from the State Highway Fund
Does not invest additional money into K12 or higher education
Does not increase salaries for state employees
Does not adequately fund the judicial branched
Does not provide additional funding to the Kansas Highway
Patrol, which is more than 100 officers short

Tax Plan: SB 270

Final Action taken June 12, 2015: Passed 21-19

Largest Tax Increase In Kansas History

Increases sales tax from 6.15% to 6.50% beginning July 1, 2015
Eliminates and reduces itemized deductions effective tax year
2015, including the property tax and mortgage interest rate
deductions
$0.50 tax increase on tobacco
New tax on e-cigarettes beginning July 1, 2016
Creates a low-income exclusion provision, which eliminates
income tax liability for single filers with taxable income of $5,000
or less, or joint filers with taxable income of $12,500 or less,
beginning in tax year 2016.
Extends rural opportunity zones (ROZ) for five years.
Imposes property tax restrictions on local governments.
Delays income tax rate reductions.
Requires a Social Security number for a minimum of year to be
eligible for tax credits.
Authorizes tax amnesty for penalties and interest to certain
delinquent taxes.

Requires the Department of revenue to mail a copy of motor

vehicle registration applications to owners, including all
information required to register and pay by return mail.

2016
Budget: SB 161, SB 249

Leaves a $290 gap for Gov. Brownback to fill at his discretion

Delays a $96 million KPERS payment for the remainder of the
fiscal year
Depends on a transfer of $185 million from the highway fund
Would require Gov. Brownback to cut nearly $92 million from
budgets of Executive Branch agencies, including the Department
of Children and Families and the Department of Aging and
Disability Services

Tax Plan: HB 2088

Final Action taken on March 22, 2016: Passed 24-16

Property tax exemptions:

o Construction of new structures, improvements, remodeling
or renovation of existing structures, or improvements on
real property, exclusive of ordinary maintenance or repair;
o Increased personal property valuation;
o Real property located within added jurisdictional territory;
o Real property that has changed in use;
o Certain bond and interest payments;
o Certain special assessments;
o Court judgments or settlements of legal actions against the
cities or counties, as well as legal costs directly related to
such judgments or settlements;
o Expenditures specifically mandated by federal or state law
becoming effective after July 1, 2015;
o Expenses relating to certain federal, state, or local
disasters or emergencies declared by a federal or state
official (including certain financial emergencies). Boards of
county commissioners could request the Governor to
declare such disaster or emergency; and
o Expenditures
used
exclusively
for
increased
law
enforcement, fire protection or emergency medical
services above the rate of inflation. Such expenditures
could not be utilized for the construction or remodeling of
buildings.