Net revenues for the approved legislative plan are $252 million during the state's 2003 fiscal year, which begins July 1; $276.2 million in fiscal 2004; $148.5 million in fiscal 2007.
Total tax increases are $270.2 million in fiscal 2003, offset by $18.2 million in tax relief.
By provision, the plan:
Increases rate to 5.3 percent from 4.9 percent on July 1. Drops rate to 5.2 percent on July 1, 2004, and 5 percent on July 1, 2005. Generates $140.2 million in fiscal 2003.
Eliminates exemption for custom software sales to generate $14.8 million.
Increases rebates poor families receive for the sales tax they pay on groceries, costing the state $5.7 million.
Exempts rental of hotel rooms by federal government employees from the sales tax, costing the state $91,000.
Increases cigarette tax on July 1 by 46 cents a pack, to 70 cents from 24 cents and again on Jan. 1, 2003, by 9 cents, to 79 cents. Generates $81.6 million.
Re-enact part of an inheritance tax law repealed in 1998, to reimpose tax of between 10 percent and 15 percent on property inherited by nephews, nieces and nonrelatives. Generates $15 million.
Individual income taxes
Increases income tax credit poor, working families receive to 15 percent of the amount allowed for a similar federal tax credit, from 10 percent. Costs state $10.5 million.
Changes laws governing the withholding of taxes from employees' paychecks. Generates $500,000.
Doubles annual franchise fees companies pay for the privilege of doing business in the state, to $2 for every $1,000 of corporate shareholders' equity attributable to Kansas or every $1,000 of a limited liability corporation's net capital accounts located in Kansas. Minimum fee goes to $40 and maximum to $5,000. Raises $18 million.
Changes income tax laws to give the Waddell & Reed Inc. financial services firm an incentive to stay in Johnson County. Costs state $2 million.
Permits state to issue up to $10 million in bonds to tire manufacturers to modernize or retool their plants, to help Goodyear Tire & Rubber's Topeka site. Repayment of bonds would begin in fiscal 2004.
Increases income tax credits businesses receive to offset the property taxes they pay on machinery and equipment, to 20 percent from 15 percent for 2005 and 2006 and to 25 percent for 2007 and beyond.
Changes formula used in valuing agricultural land, starting in 2003. Costs state $161,000, but local governments more, starting in fiscal 2004.
Starting in 2003, machinery, equipment, materials and supplies costing less than $400 would be exempt from property taxes. Current exemption is for items costing less than $250.
Allows Douglas County to impose a quarter-percent sales tax if the revenue is used to preserve open space for use in an industrial park or for economic development purposes.
Permits Anderson County to impose a sales tax for jail improvements.