A Kansas House committee is exploring whether the state should cap sales tax exemptions. A bill would require the elimination of an old exemption any time lawmakers wanted to spare something new from the tax.
State law includes more than 100 sales tax exemptions. They include everything from farm machinery to products bought and sold by many nonprofit groups. Republican Representative Steven Johnson says the long list is costing state government money, and capping the number of exemptions is one strategy for limiting the impact.
“I think it’s useful to start asking that question," he says. "What are our priorities in these exemptions, and could that lead us to setting a clear criteria?”
It’s an issue lawmakers have reviewed repeatedly in recent years, but removing exemptions can be politically difficult. Johnson says many of the groups that receive them are doing important work.
Stephen Koranda has more: