Senators aim to delay sales tax law
Topeka ? Two state senators said Friday they would introduce a bill to give merchants more time to deal with a new Kansas sales tax law and predicted most senators would support it.
Sens. Derek Schmidt, R-Independence, and John Vratil, R-Leawood, said their proposal would delay the law from taking effect until July 1, 2004. It has been on the books since July 1 but Gov. Kathleen Sebelius has declared an indefinite “period of lax enforcement,” while businesses adjust to the change.
The law changes the way merchants calculate the sales tax, from charging the rates in effect where their stores are located to charging the rates in effect where their goods are delivered. Some merchants dislike the change because they must deal with rates in multiple locations.
Sebelius and legislative leaders acknowledge the problems but say the law will help the state collect taxes on Internet and catalog sales. Some officials believe the state is losing $100 million or more in potential sales tax revenue each year.
“We’re committed to putting the breaks on until we can fix it,” Schmidt said in an interview.
Sebelius spokeswoman Nicole Corcoran said the governor expected legislators to consider several proposals next year on the sales tax law.
“The governor has made it clear that we are not going to act until the Legislature has had a chance to look at it,” Corcoran said.
Schmidt said 21 of the 40 senators have committed to sponsoring the measure he and Vratil will propose in the 2004 legislative session.
Schmidt expressed concern about the the law’s effect on cities and counties that add their own sales tax levies to the state’s 5.3 percent. Some local governments have worried that they will lose revenues to other local governments.
The law should not be implemented until legislators have a better idea of the effects, Schmidt said.




