Archive for Thursday, January 7, 1999

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January 7, 1999

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— The Kansas Chamber of Commerce and Industry is making tax reform and development of a new transportation program its top priorities in the 1999 legislative session.

The business group distributed its legislative goals Wednesday and scheduled a news conference for today to discuss them.

In its annual report, the chamber listed three main tax goals and said it "strongly supports the enactment of a new state comprehensive transportation program that meets the needs of all Kansas taxpayers while remaining fiscally responsible."

The tax objectives are to reduce income tax rates for individuals and corporations; provide businesses with a refundable income tax credit equal to 50 percent of the property taxes they pay on machinery and equipment, and adopt the integrated plant concept in determining what property used in manufacturing is exempt from the state sales tax.

Gov. Bill Graves last year proposed a 15 percent refundable tax credit for property taxes businesses pay on machinery and equipment, and it passed. That costs the state an estimated $16 million a year in reduced revenue, so a 50 percent tax credit would cost an additional $35 million or so.

The state chamber's report said it plans to actively support enactment of a new transportation program, plus an exemption for state and local highway spending in any state spending or tax limitation proposal.

The KCCI wants all materials used in bridge and highway projects exempted from the sales tax.

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