Archive for Tuesday, May 30, 2006

Practical step

A new property tax exemption for new business equipment should pay off handily for the state.

May 30, 2006

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Repealing property taxes on new business machinery and equipment is a sensible and practical way to support business in Kansas.

After voicing her support for the repeal in December, Gov. Kathleen Sebelius completed the circle last week by signing legislation that will put the measure in force on July 1. The exemption applies to new machinery and equipment including office fixtures, such as desks and computers.

Officials of the Kansas Chamber of Commerce point out that the exemption will help large businesses in the state but is especially important to small businesses, which create 80 percent of the state's new jobs. In signing the bill, Sebelius hailed the measure as an incentive for Kansas businesses to invest in new technologies, which, in turn, allows those businesses to retain and create jobs in the state.

When the state faces so many important demands on its tax funds, it can be uncomfortable to voluntarily give up a whole class of tax revenue. But eliminating the property tax on new equipment and machinery is an important investment in Kansas business that should pay a significant return in terms of bolstering the state's economy.

Comments

xenophonschild 8 years, 11 months ago

Another reason to re-elect Kathleen. My company bought new laser machines for almost 1.1 million; we can write off about 20% now and put the money back into the business.

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