Kansans to see effects of tax hike on paychecks this month

The Kansas Statehouse in Topeka.

? Kansans will see the bite from an income tax increase with their first paychecks this month, and the state is advising business owners who legally can avoid the bill until next year to start paying up this fall.

Legislators enacted an income tax increase over Republican Gov. Sam Brownback’s veto to raise $1.2 billion over two years, help balance the budget and provide additional money for public schools. The law took effect Saturday, but its changes apply retroactively to the beginning of this year to get the new revenue flowing faster.

The new law largely rolls back past income tax cuts championed by Brownback. It increases rates, restores a third tax rate for the state’s wealthiest filers and ends an exemption for nonwage income earned by more than 330,000 farmers and business owners.

The state Department of Revenue has revised tables that tell employers how much to withhold from workers’ paychecks for taxes. Revenue Secretary Sam Williams said workers should check to see that adjustments have been made.

Farmers and business owners face no penalties for waiting until next year to settle their taxes on nonwage income, but the department is encouraging them to make quarterly payments, as they did before the exemption was enacted in 2012.

“Nobody should come to April 17th next year and be surprised, if we can help it,” Williams said during an interview, referring to the filing deadline.

Brownback and his aides have strongly criticized the tax increase, and Williams emphasized its broad effects, including for working-class families.

The governor and some of his aides have been scathing on social media, with one, Ian Fury, tweeting that lawmakers boosted taxes so they could pay for “pet projects” — though the administration has yet to produce a specific list of objectionable spending.

State Sen. Laura Kelly, a Topeka Democrat, sees the department as being far more vocal about the coming changes than when, for example, the state increased sales and cigarette taxes in 2015 to plug previous budget holes.

“Clearly, they’re doing this to rile up folks as a prelude, probably, to the 2018 elections,” Kelly said.

But Williams said many taxpayers live outside “the Topeka bubble” and are not fully aware of the coming changes.