Kansas Senate approves tax cut bill worth over $400M

The Kansas Senate approved a large tax cut bill this week. In the same session, it voted down Gov. Laura Kelly’s proposal for a tax on more digital goods and products that would have offset some of it.

With a 24-15 vote from the Senate, the bill detailing over $400 million in tax cuts to the House.

The bill in part allows Kansas taxpayers to itemize state returns regardless of whether they did so on federal tax returns.

The measure would also allow multinational corporations to bring overseas profits back to Kansas without paying income tax. Lawmakers added at least $85 million in tax cuts proposed in an amendment offered by Kelly as an alternative to the original bill.

Senators did approve one proposed amendment from Kelly and other democratic leaders, which involves increasing the standard deduction. The amendment would cut income taxes for 94 percent of Kansans.

Another amendment requiring marketplace facilitators (like Amazon) to collect and remit sale tax for all remote sellers on their platforms, and imposing sales tax on digital products (like video streaming services) was voted down by Senators.

Democrats said it would generate $97 million to offset the tax cut. In a statement, they say enacting cuts without a way to pay for them leaves a billion dollar hole in the budget, and puts core services at risk.

The bill – dubbed the RELIEF Act – now moves to the House, where any changes would be reconciled with the Senate before it is sent to Kelly’s desk.