TOPEKA, Kansas (AP) – A new plan from the Kansas House Taxation Committee’s chairman would stabilize the state budget over the next five years by raising the sales tax and suspending the state’s “march to zero” on income taxes.
Republican Rep. Marvin Kleeb of Overland Park outlined the plan during negotiations Thursday between the House and Senate.
Lawmakers must erase a projected $406 million budget shortfall for the fiscal year beginning July 1.
The gap arose after lawmakers cut income taxes in 2012 and 2013 and committed to eventually phasing out income taxes.
Kleeb’s plan would boost the sales tax to 6.6 percent from 6.15 percent in July but drop it to 6.5 percent in July 2016.
His plan would allow income tax rate cuts in 2019 and 2020 but not after that.