Bill Would Lower Sales Tax on Food, Drop Business Tax Break
Associated Press - March 14, 2016 1:42 pm
A Wichita lawmaker’s bill would roll back a tax exemption for business owners in order to reduce sales tax on groceries.
Republican Rep. Mark Hutton’s bill is scheduled for a hearing Tuesday before the House Taxation Committee. It would remove the income tax break for owners of limited liability companies and other pass-through businesses.
The Kansas Department of Revenue says that action would raise about $261 million. That would allow the state to lower the sales tax on groceries between 2.6 percent and 2.9 percent.
The Wichita Eagle reports Hutton led a coalition last year that tried to remove the same income tax exemption. That effort stalled when Gov. Sam Brownback threatened to veto any bill that contained that provision. Brownback has made similar comments this session.