Kansas Senate approves $470M tax increase

Kansas senators narrowly approved late Sunday night the largest tax increase in the history of the Sunflower State to address a budget deficit exceeding $400 million in the upcoming fiscal year, the Topeka Capital-Journal reports.

The plan, which was approved with the help of nine Republicans who had taken “no tax” pledges, would hike taxes by an estimated $470 million in fiscal 2016. State senators voted 21-17 in favor of the package of tax increases that were slated to go before the Kansas House of Representatives on Monday. However, the House voted last night to send the legislation to committee this morning.

The approved tax plan would increase the state sales tax to 6.55 percent; eliminate several sales and property tax exemptions; and lift the cigarette tax by 50 cents a pack, as well as include a new tax on e-cigarettes.

The move was designed to address budget shortfalls that stem from massive tax reforms in 2012 when individual income tax rates were slashed and 330,000 businesses were awarded income tax exemptions in order to spur business investments that did not materialize as forecasted.

Read more from the Topeka Capital-Journal.