On Monday, a Kansas House committee examined legislation that would stop legislators from granting new exemptions on state sales and property taxes.
“This has no teeth and there is no way we can force them into this without a constitutional amendment,” said State Rep. Julie Menghini, D-Pittsburg, who is the ranking Democrat on the committee. “That is just not the way to go here.”
The legislation would prohibit lawmakers from opening any new programs that divert income taxes withheld from some workers’ income for certain business development projects.
However, Menghini said that testimony on Monday even included some that wanted the Legislature to look into expanding tax exemptions for businesses in the state.
“A lot of the concerns dealt with businesses that did not want us to not look at additional exemptions,” Menghini said.
Some in favor of the proposal have asked lawmakers to raise taxes to help battle the state’s projected $416 million shortfall for fiscal year 2011, which begins July 1. Those opposed, such as educators and advocates for the poor and disabled, are concerned with potential budget cuts and said that legislators have been generous enough in the past with tax exemptions, especially for businesses.
"While the state is working its way out of its financial crisis, we think it only appropriate to have a moratorium on tax exemptions, tax credits or other incentives," Shannon Jones, lobbyist for the Statewide Independent Living Council of Kansas told The Associated Press.
While Menghini said the resolution does not include a forceful arm for lawmakers to enforce a proposed moratorium, the discussion does open up talks about the topic of tax breaks to businesses.
“It does bring to light something we need to think about and that is when you are in a hole, stop digging,” Menghini said. “We cannot continue down this road until we get a set policy that we can all agree with.”
But those in favor of the measure said that passing the resolution could hamper efforts to attract new business to the state. Ashley Sherard, lobbyist for the Lenexa Chamber of Commerce told the AP: “When the states around us are loudly and publicly touting job creation, why would our Legislature want to send the message that Kansas is closed for business?”
Menghini continued to hold firm to the belief that tough budget times for the state require tough budget decisions by lawmakers.
“We just can't continue to give away money that we don't have,” Menghini said. “Hopefully, this is a wake-up call. It is not the only reason we are in this mess, but it is a reason.”
The Taxation Committee held no vote on the measure Monday, but committee chair, State Rep. Richard Carlson, R-St. Marys, said that a vote could happen later this week.
TOPEKA —
