taxes

Andy Marso / Kansas News Service

Kansas Gov. Sam Brownback laid out new policy proposals and budget plans during his State of the State address Tuesday. Even though Kansas faces a budget deficit adding up to almost a billion dollars by next year, the governor began his speech by showcasing some of the state's strong points. KPR's Stephen Koranda reports.

Stephen Koranda / KPR

Kansas lawmakers wasted no time getting down to business on the first day of the 2017 legislative session. House tax committee members met and introduced their first tax proposal Monday afternoon.

The bill would repeal an income tax exemption for more than 300,000 Kansas businesses to help balance the state budget in the face of a deficit. Republican Steven Johnson, the committee’s chairman, said they’ll also be considering other ideas.

Stephen Koranda / KPR

For the last two months, Kansas has met its state tax collection targets. That hasn’t happened for quite some time. Some state officials think it might be the start of a trend, while others aren’t so sure.

After the state lowered its revenue estimate, Kansas met the new forecast for November and December. Incoming Senate Majority Leader Jim Denning told the Topeka Capital- Journal that he thinks Kansas now has a handle on the revenue numbers and will be consistently hitting them.

Gov. Sam Brownback says he sees some positive signs, but he isn’t as upbeat as Denning.

Stephen Koranda / Kansas Public Radio

Groups representing Kansas teachers, state workers, contractors and others are proposing a tax overhaul they say would solve the state’s budget problems. The plan would undo some tax cuts made in recent years by raising the top income tax rate. It would also reinstate income taxes on hundreds of thousands of businesses.

Former Kansas Budget Director Duane Goossen and others revealed the tax plan Wednesday in Topeka. He says the tax cuts have hurt the state’s ability to invest in needed services and the proposal would reverse that.

Bryan Thompson / Kansas News Service/File photo

Kansas officials updated the state’s revenue forecast earlier this month, and this week will be the first chance to see how the estimates stack up. As Stephen Koranda reports, state tax collections for November will be reported on Thursday.

Stephen Koranda / KPR/File photo

Kansas is preparing for a new fiscal forecast for state government that is expected to be more pessimistic in projecting the state's tax collections than the current one.

State officials, legislative researchers and university economists were meeting Thursday to draft revised projections for tax collections through June 2017. They also planned to issue the first projections for the following two years.

Republican Gov. Sam Brownback, his staff and legislators use the numbers in budgeting. The current forecast was issued in April.

Stephen Koranda / KPR/File photo

Kansas tax collections came in almost $13 million below the estimate for last month. Personal income tax collections were up in October, but retail sales taxes and corporate income taxes were well below the forecast. Republican Governor Sam Brownback says sagging energy and ag industries are hurting the state's economy.

“We continue to experience a rural recession. Ag and oil prices continue to be low,” Brownback says.

Courtesy

Kansas artists and arts organizations won’t have the access to grant money that they have had in previous years. That’s because the National Endowment for the Arts has said that state lawmakers did not allocate enough money to qualify for the grants, which are managed by the Kansas Creative Arts Industries Commission.

Kansas is now ineligible for close to $800,000 in matching funds from federal and regional arts supporters.

Sam Zeff / KCUR

Everyone knows agriculture is huge in Kansas.

It’s a $62 billion a year industry that accounts for 43 percent of the Kansas economy and touches every part of the state.

Following the 2012 Brownback tax cuts, farmers no longer had to pay state income tax – just like 334,000 LLCs, S corporations and sole proprietorships.

Kansas tax collections missed the mark in July and came in below estimates by more than $12 million.

According to the AP, the Department of Revenue reported Monday that the state collected $425 million in taxes last month, compared with the state's official projection of nearly $438 million. The shortfall was 2.9 percent.

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