Kansas Senate makes room for negotiations on tax relief, after derailing House bill

TOPEKA (KSNT) - Kansas Senators have derailed a tax plan that passed the Kansas House, making room for potential negotiations on a final tax relief deal. However, lawmakers are working against the clock, as the deadline to consider bills approaches next Friday.

"We need to unbundle the various tax policy pieces from here on out," Sen. Tom Holland, a Democrat from Baldwin City, told Nexstar's Kansas Capitol Bureau in an interview on Wednesday. "We don't need bundled taxes."

Holland argued that other aspects of tax relief, like social security exemptions and property tax cuts, should be addressed in separate proposals instead of being linked to plans that carry controversial measures for some lawmakers. Other Senate Democrats also raised issued with the bill the House unanimously passed on Wednesday, House Substitute for SB 300, citing the cost of the plan.

"From just a fiscal note perspective, that bill's pretty expensive. I don't see that bill being sustainable," Holland said.

The bill would effectively move the state to a two-rate income tax system, eliminating the lower income tax bracket, according to House Republicans. However, Senate Republicans have also crafted their own tax relief proposals in the weeks leading up to the House's vote. They've maintained a strong position on their plan, which includes a single-rate income tax or 'flat tax,' as some call it.

The Senate voted to send the bill to the Senate Tax committee, ruling that the bill is "materially altered." This, essentially, derails the plan, dealing a blow to the House.

Sen. Caryn Tyson, who chairs the Senate Tax Committee, spoke with Nexstar's Kansas Capitol Bureau after the Senate adjourned Wednesday. She said committees are not able to meet at this point during session without permission from the Senate President.

Now, the focus is turning toward negotiating a final plan, potentially during a conference committee.

"What's going to happen is we have two other bills that are conference-able from the House, and I'm sure we'll get a Senate bill or two that we can conference on also," Tyson said.

Senate Republicans crafted Senate Bill 359, passing it 29-11 earlier this month. It would set the state to a single-rate income tax system, including a "gradual decrease" of the income tax over a number of years, until finally reaching 5.45%.

"The Senate has a strong bipartisan position also on cutting taxes for all Kansans. It helps with inflation and we're hoping that that's what the House realizes Kansans need in these dire times," Tyson said.