Rep. Henry Helgerson, D-Wichita, failed to win backing for an amendment elevating the state’s per-pack tax on cigarettes from $1.29 to $2.79. His plan was to create more financial incentive for people to stop smoking and to generate new revenue to help reduce the long-term unfunded liability in the Kansas Public Employees Retirement System. (File photo illustration/The Capital-Journal)
Members of the Kansas House rejected Monday amendments to bills that would more than double the state’s sales tax on cigarettes and eliminate a handful of sales tax exemptions to find $56 million to pay for a 1 cent reduction in the state’s tax on food.
House members also granted final approval to legislation upgrading regulation of amusement park facilities in wake of a fatality during 2016 at Schlitterbahn Waterpark in Kansas City, Kan. Caleb Schwab, the son of Rep. Scott Schwab, eid while riding the park’s 168-foot-tall Verruckt slide.
The water slide bill was sent to the Senate on a vote of 124-1, with the dissenting vote cast by Rep. Jack Thimesch, R-Cunningham.
On tax policy, Rep. Henry Helgerson, D-Wichita, failed to win backing for an amendment elevating the state’s per-pack tax on cigarettes from $1.29 to $2.79. His plan was to create financial incentive for people to stop smoking and to generate revenue to reduce the long-term unfunded liability in the Kansas Public Employees Retirement System.
“If someone has a better way to reduce KPERS, I’d like them to bring it down,” Helgerson said.
Rep. Steven Johnson, an Assaria Republican who chairs the House Tax Committee, and Rep. John Carmichael, D-Wichita, spoke in opposition to Helgerson’s plan. Johnson said another tobacco tax hike might be on the horizon, but Senate Bill 96 was the wrong vehicle. Carmichael said hitting Kansas with one more sales tax increase would be improper, despite indirect health benefits of a higher tax on cigarettes.
“Do I want to raise a terribly regressive tax?” Carmichael said. “I suggest that is terribly wrong.”
In January, Gov. Sam Brownback recommended the 2017 Legislature approve tax increases on tobacco and liquor to help contain a budget deficit. He proposed a $1 increase in the per-pack tax rate on cigarettes. To close a 2015 budget deficit, the Legislature and Brownback agreed on a 50-cent-a-pack increase on cigarettes.
Rep. John Whitmer, R-Wichita, offered an amendment — defeated 32-85 — to reduce the state’s sales tax on food to 5.5 percent. In 2015, Brownback and legislators hoisted the sales tax to 6.5 percent to generate operating revenue.
Whitmer said $56 million needed to finance shrinkage of the food sales tax would come from deleting sales tax exemptions on lottery tickets, bingo cards, custom computer software, dues paid zoo organizations, drill bits and explosives used for energy exploration, and other sales.
“I’ve tried to pick the ones that were low-hanging fruit,” Whitmer said. “Sales tax on food is regressive.”
Rep. Tom Sawyer, D-Wichita, said the state’s unreasonably long list of sales tax exemptions should be overhauled by legislative committees sorting through implications of each change. Adjusting tax exemptions on the House floor without input from Kansans isn’t prudent, he said.
Members of the Kansas House rejected Monday amendments to bills that would more than double the state’s sales tax on cigarettes and eliminate a handful of sales tax exemptions to find $56 million to pay for a 1 cent reduction in the state’s tax on food.
House members also granted final approval to legislation upgrading regulation of amusement park facilities in wake of a fatality during 2016 at Schlitterbahn Waterpark in Kansas City, Kan. Caleb Schwab, the son of Rep. Scott Schwab, eid while riding the park’s 168-foot-tall Verruckt slide.
The water slide bill was sent to the Senate on a vote of 124-1, with the dissenting vote cast by Rep. Jack Thimesch, R-Cunningham.
On tax policy, Rep. Henry Helgerson, D-Wichita, failed to win backing for an amendment elevating the state’s per-pack tax on cigarettes from $1.29 to $2.79. His plan was to create financial incentive for people to stop smoking and to generate revenue to reduce the long-term unfunded liability in the Kansas Public Employees Retirement System.
“If someone has a better way to reduce KPERS, I’d like them to bring it down,” Helgerson said.
Rep. Steven Johnson, an Assaria Republican who chairs the House Tax Committee, and Rep. John Carmichael, D-Wichita, spoke in opposition to Helgerson’s plan. Johnson said another tobacco tax hike might be on the horizon, but Senate Bill 96 was the wrong vehicle. Carmichael said hitting Kansas with one more sales tax increase would be improper, despite indirect health benefits of a higher tax on cigarettes.
“Do I want to raise a terribly regressive tax?” Carmichael said. “I suggest that is terribly wrong.”
In January, Gov. Sam Brownback recommended the 2017 Legislature approve tax increases on tobacco and liquor to help contain a budget deficit. He proposed a $1 increase in the per-pack tax rate on cigarettes. To close a 2015 budget deficit, the Legislature and Brownback agreed on a 50-cent-a-pack increase on cigarettes.
Rep. John Whitmer, R-Wichita, offered an amendment — defeated 32-85 — to reduce the state’s sales tax on food to 5.5 percent. In 2015, Brownback and legislators hoisted the sales tax to 6.5 percent to generate operating revenue.
Whitmer said $56 million needed to finance shrinkage of the food sales tax would come from deleting sales tax exemptions on lottery tickets, bingo cards, custom computer software, dues paid zoo organizations, drill bits and explosives used for energy exploration, and other sales.
“I’ve tried to pick the ones that were low-hanging fruit,” Whitmer said. “Sales tax on food is regressive.”
Rep. Tom Sawyer, D-Wichita, said the state’s unreasonably long list of sales tax exemptions should be overhauled by legislative committees sorting through implications of each change. Adjusting tax exemptions on the House floor without input from Kansans isn’t prudent, he said.
Resource :http://cjonline.com/news/local/state-government/2017-04-02/cigarette-tax-hike-food-sales-tax-cut-fail-pass-muster-kansas
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