KANSAS HOUSE TOYS WITH TAX INCREASES

     KLA is monitoring the potential impact on livestock producers as state legislators develop a budget in the face of declining tax revenues. The House Tax Committee advanced a bill last week proposing a repeal of sales tax exemptions to determine the willingness of the full House of Representatives to raise taxes this session. HB 2549 would repeal the sales tax exemptions for residential utilities and purchases made by churches. The residential utility tax repeal is estimated to generate $140 million a year for the state’s general fund.

     Before advancing HB 2549, the committee removed a provision, opposed by KLA, which would have imposed a sales tax on some services purchased by feedyards. It’s anticipated a host of amendments to repeal additional sales tax exemptions will be offered when HB 2549 is debated by the full House.

     Also last week, the Senate Natural Resources Committee held a hearing on a resolution urging Congress and the Environmental Protection Agency to continue to allow prescribed burning in the Flint Hills with minimal regulation. KLA testified in favor of SCR 1623 and informed the committee about the ecological and economic benefits that prescribed burning provides in the Flint Hills.

     KLA Senior Vice President Mike Beam analyzes the budget and burning issues in this week’s video report from the state Capitol. Scroll down and hit play to watch.