Mar 27, 2024
TOPEKA, Kan. (KSNT) — The Kansas House has passed a bill that would effectively convert the state income tax to a two-rate system. On Wednesday, the House voted 123-0 to unanimously pass the House Substitute Bill for SB 300, forwarding it to the Senate for approval. The Senate would have to take it up for a concurrence vote.  KSN's Kansas Capitol Bureau first reported last week that the House was steering away from the "flat" tax which received backlash from Democrats, including Gov. Laura Kelly. "We all wanted a single rate because it’s truly the best policy for Kansans long term, but the votes weren’t quite there for an override,” House Speaker Dan Hawkins, said in a statement. “Inflation is wrecking folks’ budgets so it’s crucial we get tax relief done this year for the people of Kansas. We’re working on a different plan that still provides critical property tax relief, Social Security relief, and a tax break to all income tax filers.” Republicans failed to revive their "flat" tax plan earlier this year, shifting to a new plan that includes factors that the Governor has advocated for, like speeding up the elimination of the state food sales tax, which would happen on July 1. It would eliminate the income tax on Social Security. Report: Kansas one of least ‘tax-friendly’ states in America However, one of the key changes is modifying income tax brackets.  “We’re reducing, making a small reduction in the rate. We’re removing the first bracket that we currently have in the tax code, so you will have a taxable income at 0% in that first bracket,” House Tax Committee Chair Adam Smith, R-Weskan, said. Currently, the state has three income tax brackets. Individuals making between about $2,500 and $15,000 are taxed at 3.1%. People making between $15,000 and $30,000 are taxed at 5.25%, and anything over that is taxed at 5.7%. In addition to eliminating the 3.1% tax bracket, Smith said the new bill would reduce the 5.25% bracket to 5.2% and the 5.7% bracket to 5.65%. It would also increase the standard deduction and the Kansas personal exemption.
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