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Gov Not Ruling Out Extension on Temporary Sales Tax Hike

Statehouse Flickr photo by Jimmy EmersonFlickr photo by Jimmy Emerson

 

Governor Sam Brownback says extending a temporary sales tax increase to help balance the state budget is a possibility. In 2010, lawmakers passed a 1 percent sales tax to help the state get through the recession, but it was set to expire after three years. As KPR’s Stephen Koranda reports, Brownback wants to see how the budget shapes up before making any decision.


 

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(TRANSCRIPT)

The current 1 percent sales tax increase is mostly set to expire during the middle of next year. Also next year, a big income tax cut takes effect, which could mean a reduction in state revenue. Governor Brownback says keeping the sales tax in effect to help cover the income tax cuts is a possibility. Brownback included an extension of the sales levy in his tax and budget proposals last legislative session.

“I proposed it last year, so I put it in there saying this is what we ought to do in the pay-fors for it. So I’m not opposed to it, It’s just, let’s see where we are in the budget.”

Brownback says there will likely be a dip in state revenues because of the income tax cut taking effect,  but he says tax collections will rebound because of economic growth. Some critics of the income tax cut say it won’t create enough economic growth to offset the revenue loss.

 

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(VERSION 2)

Governor Sam Brownback says extending a temporary sales tax increase to help balance the state budget is a possibility. Most of the increase is set to expire next year, but an income tax cut taking effect in January could mean a drop in state revenues. Brownback says he wants to see the effect of the income tax cut before making any decision.


“That’s the nature of these, when you cut taxes, if you cut them right, you get growth on the other side, but there’s a dip first. Let’s see where we are budgetarily before there’d be any discussion of that.”

Some critics of the income tax cut say it won’t create enough economic growth to offset the revenue loss.

 

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