Gov. Kelly vetoes Senate Bill 50

(Kansas Office of the Governor)
Published: Apr. 16, 2021 at 1:56 PM CDT
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TOPEKA, Kan. (WIBW) - Governor Laura Kelly has vetoed Senate Bill 50, which would require marketplace facilitators to collect and remit sales, transient and guest taxes, as well as 911 fees.

Governor Laura Kelly says despite COVID-19, Kansas experienced a record-setting $2.5 billion in new business investments. She said she remains committed to fiscal responsibility and therefore has vetoed Senate Bill 50.

“Last year, despite COVID-19, Kansas experienced a record-setting $2.5 billion in new investment from businesses. These companies chose to make Kansas home in large part due to the state’s recent investments in our economic development tools, prioritizing funding for infrastructure improvements, and reinvesting in our students,” said Gov. Kelly. “As many of you with whom I served well remember, in order to provide sustainable funding for essential government services, we cannot return to the era of perennial, self-inflicted budget crises that undermine the very fabric and foundation of our state.”

Kansas Democrats said the Bill would have blown a hole in the state’s general fund and undo the progress made during the COVID-19 pandemic.

“SB 50 is a fiscally irresponsible proposal which would have blown a $307.7 million hole in our state general fund and undo much of the progress we have made to accelerate out of the COVID-19 pandemic,” said Kansas Democratic Party Chairwoman Vicki Hiatt. “Thanks to Governor Laura Kelly, the devastating tax cuts proposed by Kansas Republicans won’t come into fruition. Kansas families and communities couldn’t afford another round of devastating cuts to our roads and bridges, and our schools, especially as they are trying to recover from COVID-19.”

Kansas Republicans said the veto shows Gov. Kelly’s insistence on higher taxes.

“Sadly Governor Kelly seems confused about which administration we are living in. She is now governor and her continued insistence on higher taxes, depriving Kansans of the benefits of federal tax cuts and increasing the tax burden on Kansas employers is the only experiment we are suffering through,” said Kansas House Republican Speaker Ron Ryckman, Majority Leader Dan Hawkins and Speaker Pro Tem Blaine Finch. “Kansas continues to lag behind its neighbors in our economic recovery because of actions like this veto. We stand ready to take up an override vote for the good of hardworking Kansans.”

The Kansas Chamber said while it appreciates working with Gov. Kelly, it is unfortunate that she vetoed a bill that would have brought tax relief to Kansans.

“It’s unfortunate Governor Kelly again vetoed a bill that provides tax relief for all Kansas families and Kansas businesses. Senate Bill 50 was a responsible tax reform bill with a total impact on 1% of state annual revenues. To say this was irresponsible or unaffordable is simply dishonest,” said Kansas Chamber President and CEO Alan Cobb. “We appreciate working with Governor Kelly where we can, but it’s clear that there’s no serious interest in creating a climate to attract new investment for Kansans to obtain access high-quality, private sector jobs. In baseball terms, Kansas has the best farm system in the nation. We train the best, brightest and most hard-working, only to lose them to free agency to states where those jobs exist.”

To read Senate Bill 50, click HERE.

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