First Tax Agreement Flames Out
The Tax Conference Committee came up with an agreement yesterday afternoon, putting it in SB 270 and sending it off to the House floor for a motion to adopt the report.
The agreement contained most of the provisions that each chamber had in their respective bills.
- The tax amnesty plan,
- The restoration of a property development tax credit,
- The extension of the sunset on rural opportunity zones,
- Permission to raise local sales taxes in three counties, and
- A fire district property tax clarification.
- The Christmas tree farmer tax break,
- SSN required for tax credits,
- Increasing the sales tax to 6.65% on July 1 then dropping the food sales tax to 5.9% on Jan. 1, and
- Changes in the “march to zero” – slowing the rate reductions and repealing the formula that mandates further reductions after 2020.
Set aside were provisions to:
- Repeal the alumni association property tax exemption,
- Requiring KDOR to send motor vehicle registration letters,
- Ending “double dipping” on sales tax exemptions, and
- Capping local property tax increases.
The full House took up the bill when they reconvened at 5:00.
The discussion was intense and it became clear pretty quickly that the bill was in trouble. The bill is essentially the Governor’s plan with a few additions. Of course, the Governor opposes stopping the march to zero.
When Tax chairman Marvin Kleeb closed on his motion to adopt, the vote board lit up with red NO votes. The initial count was 6 to 105. Reps. Peggy Mast, Jene Vickrey, and Ramon Gonzalez changed to NO leaving only Kleeb, Gene Suellentrop (Tax Vice Chairman), and Steve Huebert. The final vote was 3 to 108.
The conference committee met again at 7:00 but only to agree to come back today at 9:00. This morning, the 9:00 meeting was postponed until 11:00.