Topeka — The House Taxation Committee on Wednesday killed a proposed tax increase on wholesale alcoholic beverages, which was aimed at helping fund programs for Kansans with disabilities, but approved a bill that provides tax credits for renovation of historic properties.
The actions come as legislators confront a $500 million revenue shortfall in the next fiscal year, and amid crticism from Gov. Mark Parkinson on tax cuts that the Legislature has approved in the past and continues to propose.
House Bill 2593 would have doubled the gallonage tax on alcoholic beverages and divided the $22 million increase between community mental health centers and toward reducing a waiting list for Kansans with disabilities for home- and community-based services. Both areas have suffered significant budget cuts.
“I believe this population is one we need to help almost more than anyone,” said state Rep. Kay Wolf, R-Prairie Village, who was a co-author of the proposal with state Rep. Pat Colloton, R-Leawood.
But state Rep. Arlen Siegfreid, R-Olathe, described the bill as a “feel-good vote,” because, he said, the House Appropriations Committee could earmark the funds for any purpose.
State Rep. Stan Frownfelter, D-Kansas City, moved to table the bill, saying that there were many deserving causes that needed funds, such as senior citizens. “There’s a lot of people that need this money,” he said. The measure was defeated on a voice vote. It had also been opposed by the liquor industry, which said it would increase the cost of business.
Siegfreid then pushed for passage of Senate Bill 430, which would remove a cap on the amount of money available for historic preservation tax credits. The Kansas Department of Revenue says the legislation will reduce tax receipts to the state by $5.7 million.
But Siegfreid disagreed with that assessment.
He said the tax credit will create jobs by increasing historic preservation activity. “This is definitely a positive,” he said. The committee recommended approval of that bill by voice vote with no one voting against it.
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AreUNorml (anonymous) says…
"The liquor industry opposed the increase, saying it would increase their cost of doing business."
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the liquor industry opposes a lot of things that are detrimental to their killing & violence machine.
Jimo (anonymous) says…
Their killing & violence machine? Whether hyperbole or sarcasm, this characterization is hardly accurate. About as murderous as the Pepsi-Fruit Loops corn syrup complex.
matchbox81 (anonymous) says…
Service cuts all over the state, declining revenues. etc. But instead of fixing it, let's do the same thing that we've been doing for the past 10 years which is give more tax credits and bypass revenue opportunities. I feel like State legislators don't understand how we got into the mess.
Graczyk (anonymous) says…
I don't think I understand the politicians in Kansas. I Republican sponsored the tax on liquor but a Democrat (along with other Republicans) opposed it. That's about the exact opposite of what I would expect to happen.
Also, they can raise the tax pretty much all they want and I am still going to buy booze.