KLA: Immigration, taxes top legislative discussions

State immigration policy and reform of the state’s income tax law were center stage issues in packed hearing rooms at the Capitol last week in Topeka. The House and Senate Federal State Affairs Committee held six hearings on various immigration bills, including the KLA-supported “Kansas Workers and Community Partnership Act.” This proposal, provided in SB 399 and HB 2712, would enable the state of Kansas to support undocumented persons in their efforts to gain work authorization from the U. S. Department of Homeland Security (DHS). Eligible participants could not have a felony conviction, must not be on the DHS priority deportation list and must provide proof of presence in Kansas since 2007. 

“We strongly believe a proactive solution, which offers the chance to gain work authorization status is the best approach for Kansas and its residents,” said Eric Stafford with the Kansas Chamber of Commerce.

SB 399 and HB 2712 is supported by a business coalition, of which KLA and the Kansas Chamber are members, as an alternative and preferable approach to pending legislation that mandates employers participate in E-Verify and bills that create new penalties and local law enforcement mechanisms that have proven to decimate a state’s economy. To date, the Kansas Legislature has not acted on these immigration proposals.

Gov. Sam Brownback’s income tax legislation, SB 339, was scrutinized last week during a two-day hearing in the Senate Assessment and Taxation committee. The bill would lower income tax rates, reduce the tax brackets from three to two and eliminate most state income tax deductions and credits. In addition, the legislation would eliminate the Kansas individual income tax on non-wage business income for LLCs, subchapter S corporations and sole proprietorships. The House Republican’s tax bill, HB 2747, proposes to phase down income tax rates, while retaining the current deductions and tax credits. Furthermore, the bill allows .6% of the state sales tax rate to expire in 2013 and requires that state general fund growth above 2% at year’s end be directed to further reduce income tax rates in subsequent years. HB 2747 also targets reductions and phase-outs of non-wage income for LLCs’, subchapter S corporations and sole proprietorships.

At this stage of the session, water conservation bills are moving through the Legislature with ease. The House passed SB 272 last week. This bill would amend the state’s multi-year flex water usage law by giving users more latitude to use increased water in certain years, while prohibiting overall water use during a five-year period. SB 272 passed the Senate earlier and likely will go to the governor this week. The Senate gave their unanimous approval to the repeal of the “use-it-or-lose-it” bill last week. This measure, HB 2451, previously passed the House. KLA supports SB 272 and HB 2451.

For more information visit www.kla.org.