Online Sales Tax Being Considered In Kansas

Loretta George

6 years ago

Senator Richard Hilderbrand, Republican, Senator from Galena, can be contacted by email richard.hilderbrand@senate.ks.gov or cell phone 417.529.3262 .

The United State Supreme Court ruled recently ruled that states can now collect online sales tax from out-of-state vendors, according to a press release from Richard Hilderbrand (R-Galena).

“Before the Kansas Legislature moves forward, we must look closely to see how this will impact hardworking Kansans,” Hilderbrand said.

“The Supreme Court opinion on online sales taxes would work like this,” he said. ” Any taxing entity in the U.S; can now collect sales tax from any business that sells online to a customer that resides in their taxing jurisdiction.”

“This will put a huge burden on small businesses that currently sell online,” Hilderbrand said. “They will now have to answer to thousands of taxing entities. They will have to know what each sales tax rate is, and will also be subject to audits from those taxing entities.”

“Because this is an interstate commerce issue, it will be up to our U.S. Congress, and U.S. Senate to address this situation,” Hilderbrand said. “The state will have to decide on whether or not to start collecting taxes on out of state businesses that sell online to Kansas citizens. If the state decides to start collecting that sales tax, it will be another tax increase on Kansas citizens.”

“We cannot place another tax hike onto Kansas taxpayers for the third year in a row. An implementation of online sales tax must be coupled with a decrease in the overall sales tax rate. It is an embarrassment that Kansans pay some of the highest sales taxes in the Midwest. Our first priority should be to ease the financial burden on families by making Kansas a more affordable state,” according to the press release.”

“In 2017, the legislators passed a $1.2 billion retroactive income tax increase on the citizens of Kansas,” Hilderbrand said. “In 2018. the legislators failed to pass a tax-reform bill that would have allowed the citizens of Kansas to take advantage of the federal revenue windfall.”

“In failing to pass this legislation a significant number of Kansans, who previously benefited from income tax relief by itemizing deductions on Kansas returns, will no longer be able to do so because they will not be able to itemize at the federal level,” he said.

“The result of not passing this bill, is another income tax increase, specifically on Kansas homeowners who claimed the mortgage interest and property tax deductions in years past,” he said.

“The Senate passed this bill 21-19, but it failed in the house on a 59-59 vote. By not passing this tax-reform bill, it will lead to a tax increase of almost $500 million over the next three years,” Hilderbrand said.

“In 2019 the legislators will now be faced with this U.S. Supreme Court opinion and how it will affect our citizens. There are a lot of legislators that want to collect that extra tax and spend it. If that happens that will make it three years in a row that Kansans’ would have had a tax increase. If we are going to be serious about allowing our business’s in Kansas to be more competitive with our neighboring states, we cannot continue to be the highest sales tax state in the midwest.”

“The sales tax rate must be lowered so Kansans can keep more of their money in their pockets instead of being forced to send more and more money to Topeka,” Hilderbrand said.