Tax & Accounting Blog

New Kansas Governor Under Pressure To Repeal Tax Increase?

Indirect Tax, Sales and Use Tax January 4, 2011

An interesting scenario is arising in the state of Kansas where new governor Sam Brownback, a Republican, is already facing heat from his party members to repeal a tax increase from 2009. As of 1 July 2009, the 1.0% state sales and use tax rate increase brought the state rate to 6.3%. Many members of the Republican party campaigned late in 2010 to have that increase repealed, and have made the repeal a priority come legislative sessions. Brownback, however, is at odds with his own party members as he would like to keep the increase in place, citing a lack of resources will keep state revenues from stablizing. 

There may also be another option in solving this debate other than keeping or repealing the 1.0% increase. Brownback has mentioned that presenting broad tax reform to the Legislature could be an alternative, with the idea that other taxes would be adjusted while leaving the increase to sales and use tax in place. This will be something to keep an eye on moving forward for those doing business in Kansas.