A report issued Tuesday by the Kansas Chamber and the Tax Foundation found the Kansas tax code needs significant changes to help improve the business climate and grow the state’s economy.
“Removing international income from the state tax base is something we’ve been advocating for the last two years,” said Eric Stafford, VP of Government Affairs for the Kansas Chamber. “The Governor vetoed two bills last year. Kansas has not taxed international income historically, until the Tax Cuts and Jobs Act passed. That’s why we’ve been asking the Legislature to decouple from those provisions.”
There are also individual tax consequences that come with a failure to decouple.
“On the individual income tax side, we have advocated for allowing individuals to itemize when they use the standard deduction at the federal level,” said Stafford. “There is such a discrepancy between the state standard deduction and the federal standard deduction.”
The new report also asks the state to remove barriers to interstate commerce, especially as it pertains to internet sales. In addition, the report wants current law to be followed in the taxation of big box stores.
“Have the state Property Valuation Division essentially, educate and give direction on how these big box retail properties should be appraised,” said Stafford. “You’re wasting the taxpayer time and resources by fighting and litigating and losing, but then you’re also really hurting the retailer and taxpayer from that side, in that they’re seeing 100 to 108% increases in their valuations.”
The full text of the report and its recommendations can be found at the following link: www.KansasChamber.org/TaxReport.