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While a Senate committee began hearings on bills to increase sales taxes and tobacco taxes, another bill has been advanced that would increase the cost of a 12-ounce can of soda.
The Senate Assessment and Taxation Committee began hearings over raising tobacco taxes by 55 cents and will continue hearings regarding Kansas Gov. Mark Parkinson’s plan to increase the state sales tax by 1 percent from 5.3 percent to 6.3 percent for three years.
The soda tax, which was advanced by Sen. John Vratil, R-Leawood, increases the tax on soda by one penny for every teaspoon of sugar — or an estimated 10 cents — and would raise an estimated $90 million during the next fiscal year, which begins on July 1.
“It is amazing just to see how much can be generated,” said Sen. Les Donovan, R-Wichita, chairman of the Assessment and Taxation Committee. “There is a lot more consumed than I could have ever dreamed.”
Both the tobacco and sales tax increases would constitute an overall increase of just over $377 million in the state general fund receipts in the next fiscal year. Currently, the state is facing a projected $467 million shortfall for FY 2011.
“We're hoping that the gap is not that broad,” Donovan said. “If it is we have bigger problems than we thought.”
Vratil proposed his soda tax during a meeting of the Senate Ways and Means Committee, which agreed to sponsor it. The committee also agreed to sponsor a bill that doubles the per-gallon taxes paid by distributors of beer, wine and liquor and the tax that retail stores pay on their gross receipts. That measure would raise an additional $50 million.
As for the tax increases that the Assessment and Taxation Committee started hearings for Tuesday — in favor of the Governor’s increases — Donovan said that state agencies are warming up to the proposal.
“There are a lot of people that get the funding that are excited about us discussing these tax increases,” Donovan said. “They get the money ... that is a pretty good connection and without the tax increases, they are not going to get the funding they need.”
The testimony came on the same day that advocates for the disabled staged several small protests at the Statehouse.
The tobacco tax proposal would increase the cigarette tax by 55 cents, to $1.34 a pack, and to quadruple the tax on other tobacco products to 40 percent.
Hearings on tax increases will continue today with cigarette tax opponents and Donovan said that hearings are scheduled to continue into next week.
“When we start hearing the other parts of the bill — soft drink tax bill and liquor bill — there will be hearings on each one of those,” Donovan said. “We want to give everyone a fair hearing and exhaust all possibilities to help those that get the funding while trying not to destroy those that are being taxed.”
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
While a Senate committee began hearings on bills to increase sales taxes and tobacco taxes, another bill has been advanced that would increase the cost of a 12-ounce can of soda.
The Senate Assessment and Taxation Committee began hearings over raising tobacco taxes by 55 cents and will continue hearings regarding Kansas Gov. Mark Parkinson’s plan to increase the state sales tax by 1 percent from 5.3 percent to 6.3 percent for three years.
The soda tax, which was advanced by Sen. John Vratil, R-Leawood, increases the tax on soda by one penny for every teaspoon of sugar — or an estimated 10 cents — and would raise an estimated $90 million during the next fiscal year, which begins on July 1.
“It is amazing just to see how much can be generated,” said Sen. Les Donovan, R-Wichita, chairman of the Assessment and Taxation Committee. “There is a lot more consumed than I could have ever dreamed.”
Both the tobacco and sales tax increases would constitute an overall increase of just over $377 million in the state general fund receipts in the next fiscal year. Currently, the state is facing a projected $467 million shortfall for FY 2011.
“We're hoping that the gap is not that broad,” Donovan said. “If it is we have bigger problems than we thought.”
Vratil proposed his soda tax during a meeting of the Senate Ways and Means Committee, which agreed to sponsor it. The committee also agreed to sponsor a bill that doubles the per-gallon taxes paid by distributors of beer, wine and liquor and the tax that retail stores pay on their gross receipts. That measure would raise an additional $50 million.
As for the tax increases that the Assessment and Taxation Committee started hearings for Tuesday — in favor of the Governor’s increases — Donovan said that state agencies are warming up to the proposal.
“There are a lot of people that get the funding that are excited about us discussing these tax increases,” Donovan said. “They get the money ... that is a pretty good connection and without the tax increases, they are not going to get the funding they need.”
The testimony came on the same day that advocates for the disabled staged several small protests at the Statehouse.
The tobacco tax proposal would increase the cigarette tax by 55 cents, to $1.34 a pack, and to quadruple the tax on other tobacco products to 40 percent.
Hearings on tax increases will continue today with cigarette tax opponents and Donovan said that hearings are scheduled to continue into next week.
“When we start hearing the other parts of the bill — soft drink tax bill and liquor bill — there will be hearings on each one of those,” Donovan said. “We want to give everyone a fair hearing and exhaust all possibilities to help those that get the funding while trying not to destroy those that are being taxed.”
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
