This week Gov. Laura Kelly signed three bills relevant to KLA members and vetoed two KLA-supported bills. The Legislature returned Thursday to begin the veto session. The main focus of the veto session is to consider overriding gubernatorial vetoes, but it also will include work on an omnibus budget bill and, potentially, some conference reports not completed during regular session.
Prohibiting eminent domain for solar developments – HB 455, which contains the language originally in KLA-supported SB 457, was signed into law. The legislation will prohibit public utilities from exercising eminent domain for the siting or placement of solar-powered electric generation equipment. The bill adds solar to the existing eminent domain prohibition for the siting and placement of wind-powered electrical generators or turbines.
Personal property tax filings – Gov. Kelly signed SB 410, which contains 22 provisions, including one supported by KLA. The KLA-supported provision will decrease personal property tax penalties associated with late filing of personal property tax rendition statements and eliminate the need to annually file the statements unless there is a change in personal property holdings.
Budget – The governor signed the budget while line-item vetoing 24 provisions included in the legislation. Key items of importance to KLA members in the budget include an additional $50,000 in fiscal year (FY) 2024 and FY 2025 for the state’s two livestock theft investigators and language prohibiting the Kansas Department of Health and Environment, Division of Environment from using funds in FY 2025 to use satellite imagery to identify confined feeding facilities.
Comprehensive tax plan – Gov. Kelly vetoed HB 2036, the comprehensive bill that would reduce the statewide school mill levy from 20 mills to 19.5 mills. A statewide mill levy reduction is supported by KLA. Additional property tax relief for homeowners was included by increasing the residential exemption from the statewide mill levy from $42,094 to $100,000. The bill also proposed to eliminate the lowest income tax bracket and move the state to a two-bracket system with rates at 5.55% and 5.15%. HB 2036 includes a 3% increase in the standard deduction and would increase the personal exemption from $2,250 per person to $9,160 for single filers and $18,320 for joint filers. The exemption would be $2,320 for dependents. Additionally, the bill also would eliminate the income tax on Social Security income, accelerate the elimination of the food sales tax to July 1, 2024, and repeal the statutory transfer of funds to the Local Ad Valorem Tax Reduction Fund and the City County Revenue Sharing Fund. It is anticipated the Legislature will take up a veto override vote as the conference report passed the House unanimously and the Senate 24-9. (While 27 votes are needed for an override, seven members did not cast a vote.)
Sales tax exemption legislation – HB 2098, a bill containing various sales tax exemptions, was vetoed by the governor. The bill included a sales tax exemption for local meat processing services, which was supported by KLA. It is anticipated that the Legislature will take up a veto override vote on the legislation as it previously passed the Senate 34-1 and the House 102-17.
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