Sen. Dennis Pyle, R-Hiawatha, waves a 00 bill and says This

Topeka ? In late-night action Tuesday, the Kansas Senate passed a tax bill that would have raised about $600 million a year in new taxes, but moments later the bill failed in the House by a wide margin.

The bill would reinstate a third, higher income tax bracket and raise individual tax rates. It would also repeal the so-called LLC exemption that allows more than 330,000 farmers and business owners to pay no state taxes on their nonwage business income.

Conservatives in the Senate were forceful in their opposition. Sen. Dennis Pyle, R-Hiawatha, tried unsuccessfully to use a procedural maneuver to kill the measure. Then, speaking out against the bill, he reached into his wallet and pulled out a $100 bill, waving it to the chamber and saying, “This is my property.”

Sen. Dennis Pyle, R-Hiawatha, waves a 00 bill and says This

The Senate had been in the middle of a marathon debate on a school finance bill but put that debate on hold to take up the tax bill in hopes that the House could vote on it before midnight.

The House has a rule prohibiting debate after midnight.

The bill arrived on the House floor shortly before 11:30 p.m. House members then broke to meet in their respective caucuses to receive an explanation of the bill.

The bill is larger than one lawmakers passed in early February, which Brownback vetoed. The House voted to override that veto, but the override attempt failed in the Senate, where Majority Leader Jim Denning and Senate President Susan Wagle both voted against the measure.

Denning voted for the larger bill Tuesday night, but Wagle, who is said to be considering a bid for the 4th District congressional race next year, continued to vote no.

The bill passed the Senate, 26-14, which was one vote short of the two-thirds majority it would need to overcome a virtually certain veto.

Moments later, the House took up the bill, and after only a brief debate voted the bill down, 37-85.

Democrats had tried to postpone the debate until Wednesday morning, but Republican leaders in the House insisted on moving forward Tuesday night.

Rep. Tom Sawyer of Wichita, the ranking Democrat on the House committee who said he supported the bill, said many House members were angry they were being asked to vote on such a large tax bill shortly before midnight.