Kansas House Passes Income Tax Reform

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TOPEKA, Kan. -- Wednesday the Kansas House of Representative passed legislation that will reduce the income tax rate beginning in 2013 and eventually eliminate it entirely. SB 177 passed final action on a vote of 68-56.

“We are moving in the right direction and I applaud the House for passing legislation that reforms our state’s income tax policy. Earlier this week, the Oklahoma Senate passed legislation dropping their income tax rate - it’s time Kansas does the same,” said Speaker Mike O’Neal (R-Hutchinson). “The House has made tax relief a priority for Kansans and businesses while maintaining support for our hard working, low-income families.”

The House tax plan retains all state tax credits and deductions - including the Earned Income Tax Credit (EITC), and buys down the individual income tax rate starting in 2013. The plan also eliminates individual income tax on non-wage business income at a graduated cap for four years.

The bill also expands the successful Rural Opportunity Zone (ROZ) program to include 23 more counties.