Legislative Update by State Senator Caryn Tyson
February 11, 2022
Tax RELIEF – Removing Sales Tax on Shipping
Do you know you pay sales tax charges on postage and shipping in Kansas? Hopefully, not for long. The Senate passed Senate Bill (SB) 327 unanimously, exempting shipping and postage charges from sales tax if the charges are listed separately on a receipt or invoice. It just makes sense, and I was glad to lead this effort. Hopefully, the House will pass it as well.
The Senate Tax Committee passed SB 339, removing all sales tax on food. While working the bill in Committee a couple of amendments were added, removing sales tax on commercial electric, gas, and other utilities (homeowners don’t pay this sales tax), and removing sales tax on theater tickets. It looks like the bill will have a few more amendments when worked on the floor. One of the amendments will be regarding funding to KDOT. Currently, KDOT gets 16.55% of sales tax collected. Since sales tax collection will decrease, KDOT would like the percentage to increase proportionally.
Economic Development – Giving away almost everything, including the kitchen sink
The Governor and the Kansas Secretary of Commerce brought a bill, SB 347, to the legislature for economic development with one company in mind. I opposed the Governor’s efforts to pick winners and losers in business. Instead we should pass tax cuts that help existing businesses and make Kansas a more appealing state for all businesses to come.
SB 347 could have Kansas writing a check to the company for an obscene amount of money – the current estimate is over $60 million a year for 10 years if the company makes a $4 billion investment. I asked, “what would qualify as an investment?” Can you believe the Secretary of Commerce gets to decide? The bill has payroll, income tax, and sales tax incentives and is being touted as the $1 billion giveaway. We have also heard the state and local governments will be giving away possible buildings, land, and abating property taxes.
There have been comments about the secrecy and not knowing the company. As a legislator under these circumstances, I did not sign a non-disclosure. Anyone who did, was told the company name.
SB 347 goes against what I have been fighting for – transparency and to stop the government from picking winners and losers. It has been reported the company is a foreign company, possibly Panasonic to make batteries for electric vehicles. Disappointingly, the bill passed the legislature and was signed into law. My hope is that it doesn’t turn out like the Wisconsin Foxconn “debacle”.
Veto Override Redistricting Map
The legislature voted to override the Governor veto of SB 355, the U.S. Congress redistricting map. Lawsuits have already been filed, likely more to follow – as the minority party has planned all along.
It is an honor and a privilege to serve as your 12th District State Senator.
Caryn