John Brocker, of Allen County Realty, Inc. and former club president, gave Iola Rotarians a legislative update from information provided by Luke Bell, a lobbyist who monitors goings-on in Topeka for real estate agents.
The rumor mill, Brocker said, has it that some legislators are looking at tax increases of as much as $350 million to help close the state’s budget deficit for fiscal year 2016, which starts July 1. The projection is that the 2016 budget will have a $600 million shortfall. Other means of dealing with the shortage are through cuts, some of which have been made, and taking money from state agencies, such as the Kansas Department of Transportation.
Tax increases for cigarette and alcohol sales, and perhaps fuel, are expected, Brocker said. He said changes in deductions for income taxpayers and possible elimination of the $20,000 residential exemption for the 20-mill statewide property tax to support state aid to public schools were other considerations. If the residential exemption were removed, it would cost home owners an additional $46.
With the upcoming year’s budget having to be in place by July 1, Brocker said he expected the session “to be a long one,” likely extending well into May.
A property tax increase for agricultural land has been mentioned, but Brocker doubts if it will materialize.
Some tax increases likely for FY 2016
