BY: ANNA KAMINSKI
Kansas Reflector
TOPEKA — Two tax bills will head to the Kansas governor’s desk after clearing the Senate Thursday, but Republicans and Democrats differed on whether the tax relief made good on their campaign promises to Kansans.
Senate Democrats condemned the legislation in back-to-back debates as lawmakers worked into the night to finalize the remaining legislation of the 2025 regular session.
The Democrats spoke of broken promises as the chamber considered Senate Bill 35, which cuts state property taxes, and Senate Bill 269, which reduces income tax rates.
The House advanced SB 35 bill Wednesday in a 96-26 vote. It passed the Senate unanimously, despite criticism from Democrats, in a 40-0 vote.
The bill eliminates the statewide levy of 1 mills for the state education building fund and the .5 mills levy for the state institution building fund.
“Promises, promises, promises,” said Topeka Democrat Sen. Patrick Schmidt. “And this is what we’re going to get. One-and-a-half mills.”
“Kansans, you get scraps from this majority,” Schmidt added, referring to Republicans.
State General Fund dollars would replace the lost revenue from eliminated tax collections. In fiscal year 2027, which begins June 2026, the state education building fund would receive about $56 million and the institutional building fund would receive about $25 million from the State General Fund.
Sen. Caryn Tyson, a Parker Republican who presented the property tax relief bill, said she was proud of the work the Senate had done in attempting to limit taxable property values, among other tax break measures.
“We can go home and hold our heads high (knowing) that we worked for our constituents,” she said.
SB 269 is designed to reduce the individual and corporate income tax rates to 4% and bank rates could drop as low as 2.6%. However, the cuts are contingent on maintaining the state’s budget stabilization fund.
House lawmakers advanced the bill Wednesday in an 84-38 vote after debate from only Democrats. The Senate approved it in a 30-10 vote, with Republican Sen. Rick Billinger of Goodland joining Democrats in opposition.
Tyson characterized the bill as a way to combat “out-of-control” government spending, although she acknowledged that taxpayers won’t immediately see its impact.
“Instead of continuing to grow government and feed the beast, we’re going to reign that growth in by creating a step-down,” she said.
The changes would go into effect in 2025, and taxpayers could see effects if the State General Fund revenue exceeds the previous fiscal year’s revenue, adjusted for inflation.
The budget director would make that determination by Aug. 15, and the secretary of revenue would calculate tax rate reductions starting with individual income taxes.
Once individual rates in both the lower and higher tax brackets reach 4%, rate reductions for corporations and financial institutions would be triggered. Reductions would continue until the combined rate for corporations reaches 4%, the combined rate for banks reaches 2.6% and the combined rate for other financial institutions reaches 2.62%.
Sen. Ethan Corson, a Fairway Democrat, pushed the point that taxpayers won’t see immediate relief.
In response, Tyson listed a number of income tax reductions, praising the Legislature’s work in recent years. She then turned to Democrats.
“You can’t stand in one breath and say it’s not tax cuts and then in the second breath say ‘Oh, we’re going to lose $260 million of school funding,’ ” Tyson said. “You can’t have it both ways, guys. It’s either tax cuts, or it’s not.”
Corson said that Kansans have been “crying out” for property tax relief. Last year, during the special session, lawmakers passed income tax relief, and then legislators underwent election season campaigning on delivering property tax relief this session, Corson said.
“Well, here we are … on day 74 of the legislative session, and the only property tax relief we delivered is a measly one-and-a-half mills,” he said. “I was frankly surprised, Mr. President, that the majority party was able to even put that bill on the floor with a straight face.”
Harking back to SB 35, he said under the proposal, owners of a $150,000 home would save $25.88, and owners of a $230,000 home would save $39.68.
“You know, as my grandpa used to say, ‘Don’t spend it all in one place,’ ” Corson said.
He compared the Legislature to Charlie Brown’s Lucy with a football.
“We keep promising property tax relief for Kansans, and then we yank it away,” he said.
Tyson pushed back.
“Oh my gosh,” she said. “Turn down your W-I-F-M station: What’s In it For Me. This is for the taxpayers. This is for us stopping government growth. This is absolutely needed.”
The Senate adjourned around 9:40 p.m. and will not meet again until the veto session begins April 10.