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Legislature Considers Eliminating Sales Tax Exemptions
The Kansas House Taxation committee is looking into eliminating sales tax exemptions as a way to help balance the budget.
Reporter: Abby Barnett Email Address: abby.barnett@kake.com |
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February 3, 2010
The Kansas House Taxation committee is looking into eliminating sales tax exemptions as a way to help balance the state budget.
Areas effected would be non-profit organizations, faith based organizations, and churches.
Currently, most of these organizations are at least partially exempt from paying sales tax, but if those exemptions are eliminated, these groups will be taxed like any other person or company.
"Overall, the impact could be 100 million dollars for non-profits across the state," said Perry Schuckman, Executive Director of Nonprofit Chamber Services.
Schuckman said, if this is passed, the overall fiscal impact for nonprofits would be major, and organizations would suffer. He said Habitat for Humanity is predicting they will have to cut back on the number of homes they build if their tax exemption status is taken away.
Those with the state said, the projected budget shortfall for the fiscal year beginning July 1 is 400 million dollars. Legislators said they have to do something to correct the problem, and at this point, this is an option they are looking into.
Another proposal legislators are looking into is imposing a sales tax on Kansas lottery tickets.
All of these tax issues will be discussed next week in house taxation meetings.
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