Kansas Governor Sam Brownback is considering keeping sales tax at the current rate, rather than reducing it in July, 2013, as planned.
New legislation designed to give "a shot of adrenaline into the heart of the Kansas economy" is set to take effect January 1, 2013. HB 2117 will drop Kansas income tax rates for all Kansas taxpayers by 14 to 24 percent and eliminate state income taxes for thousands of small business owners.
The proposed income tax cuts may indeed stimulate the economy, but Governor Brownback has acknowledged that "he is anticipating state revenues will dip temporarily" because of them.
Kansas currently has a state sales tax rate of 6.3 percent, up from its 2010 rate of 5.7 percent. Gov. Mark Parkinson raised the state sales tax in 2010 in order to protect funds for public schools and social services. The hike was intended to be temporary, and the sales tax rate is scheduled to return to 5.7 percent in July of 2013.
Gov.Brownback has said "a sales tax proposal remains a possibility." However, "he won't make a decision until he sees how the budget picture develops." (Associated Press).
Read about October 2012 Kansas sales tax rate changes here.
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