A bill that would phase out the state's business franchise tax over three years cleared the Kansas House on Wednesday, backed by Republicans who say the change would eliminate a penalty placed on businesses for making investments.
The measure, on a 91-30 vote, went to the Senate with strong Republican support. But some Democrats said legislators should consider other priorities.
The bill eventually would provide businesses with a $45 million break by eliminating the tax, which represents a fee for doing business in Kansas and is based on the value of the businesses' assets.
Gov. Kathleen Sebelius proposed a less-ambitious approach, which would eliminate the tax for 16,000 small businesses, part of her plan to cut business taxes by $30 million over two years.