Governor Kelly Proposes Alternative Tax Cuts Plan, Vetoes Unsustainable Tax Bills

Apr 24, 2024

Governor Kelly Proposes Alternative Tax Cuts Plan, Vetoes Unsustainable Tax Bills

~~Governor Kelly Vetoes Senate Substitute for House Bill 2036, House Bill 2098,
House Substitute for Senate Bill 271, and Senate Bill 473~~

TOPEKA— Governor Laura Kelly today announced an alternative tax cuts package for the Legislature to consider when it returns to the Statehouse later this week.  

“Kansans need meaningful sales, property, and income tax relief. However, we must ensure that the plan is affordable for the long term,” Governor Laura Kelly said. “We must be mindful of the fiscal mistakes of the previous administration and ensure we can provide tax relief while continuing the progress we have made as a state.” 

Governor Kelly’s plan is $433 million per year, which also accounts for the contents of House Bill 2098 and Senate Bill 96. This plan is considerably less costly than what the Legislature sent to her desk, which was $520 million when considering all tax bills being proposed. The bills sent to the governor’s desk also did not include the child care tax credit that is vital to Kansas families.

The governor’s plan reduces the overall costs of these proposals by nearly $90 million per year while ensuring all taxpayers are provided meaningful and comprehensive tax relief. 

The plan: 

  • Accelerates the elimination of the state’s sales tax on groceries to July 1;

  • Keeps the current three tax brackets in place, but lowers each of the tax rates;

  • Increases the standard deduction, personal exemption, and child care tax credit for dependent care expenses;

  • Immediately eliminates state taxes on all Social Security income; and

  • Cuts property taxes for Kansans by exempting the first $125,000 of all homes from the statewide property tax levy. 

Upon this announcement, Governor Kelly vetoed Senate Substitute for House Bill 2036 and House Bill 2098. 

The following veto message is from Governor Kelly regarding her veto of Senate Substitute for House Bill 2036:  

“While I appreciate the bipartisan effort that went into this tax cut package and support many of the provisions included, I cannot sign into law a bill that jeopardizes our state’s future fiscal stability.   

“I have said repeatedly that I will do everything in my power to prevent our state from the fiscal mismanagement of the previous administration. Since becoming governor, my administration has been laser-focused on getting us back on track, so we don’t go back to the days of four-day school weeks, crumbling roads and bridges, and crippling debt. This bill is too expensive and risks reversing the progress we’ve made. 

“When working on any fiscal package, including tax cuts, legislators must consider the legislation’s affordability beyond their next election. The total fiscal impact of tax relief should stay within the tax plan I released with this veto. I encourage legislators to send me a tax package that gives Kansans the relief they desperately need while not putting the state on the path to bankruptcy.   

“Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto Senate Substitute for House Bill 2036.”

The following veto message is from Governor Kelly regarding her veto of House Bill 2098:  

“The intent of House Bill 2098 is on the right track to provide Kansans with sales tax relief.

“However, the impact these tax cuts would have on the State General Fund cannot be realized without knowing the total cost of all tax bills, including a fair, sustainable, and fiscally responsible tax relief package.   

“Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto House Bill 2098.”


Governor Kelly also vetoed House Substitute for Senate Bill 271 and Senate Bill 473

The following veto message is from Governor Kelly regarding her veto of House Substitute for Senate Bill 271:  

“House Substitute for Senate Bill 271 restricts the purchase of drone technology and “critical components” – including replacement parts – from countries of concern by government agencies and law enforcement entities. While the legislation is well-intentioned, it uses overly broad definitions, which will end up placing significant burdens on these government consumers, including law enforcement organizations that depend on drone technology to provide essential services and keep Kansans safe. The legislation requires these consumers to know what goes into each targeted item, down to the individual component, microchip, and processor.  

“There are, however, ways to achieve the goals of this legislation without placing undue burdens on agencies, local units of government, and law enforcement through avenues like the regular procurement process. This work is underway and will address the underlying concerns of this bill.   

“Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto House Substitute for Senate Bill 271.”

The following veto message is from Governor Kelly regarding her veto of Senate Bill 473:  

“While I support the goal of reforming our criminal justice system in relation to pre-trial release, Senate Bill 473 establishes a minimum amount a person must pay a bail bonding company to be released from jail, regardless of the type or severity of their crime. This requires bond companies charge an appearance bond premium of a minimum of 10% of the face amount of the appearance bond, of which half must be received before posting a bond. After thorough review, I am concerned of the impact that this will have on low income, non-violent offenders’ ability to be released and return to their families and jobs.  

“The Kansas Judicial Branch Pretrial Justice Task Force reviewed these issues extensively and made important recommendations. One of those recommendations is contained in this bill. While I support that component, the remaining provisions of this bill need further refinement.  

“Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto Senate Bill 473.” 

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