Kansas State Victories
The following NFIB victories will make a real difference for your business.
Recent NFIB/Kansas victories:
Secured business machinery and equipment tax exemptions
All business machinery and equipment acquired after June 30, 2006, will be exempt from property tax. Starting Jan. 1, 2007, all existing business machinery and equipment costing $1,500 or less, when purchased new, will be exempt from property tax and annual reporting to county appraisers.
Achieved a phase-out of Kansas estate tax
Estates with a total value of less than $1 million will be totally exempt from the Kansas estate tax, effective for decedents dying after Jan. 1, 2007. Estates valued over $1 million will be taxed on a sliding scale, comparable to the federal estate tax. The tax will sunset, effective for the estates of decedents dying on and after Jan. 1, 2010, completely eliminating the state estate tax.
Protected small business from tax increases
NFIB/Kansas was part of a coalition that opposed any increase in sales, income or property taxes to fund increases for K-12 education financing. In the face of a Kansas Supreme Court order, NFIB held fast, arguing that the money could be found within the state's existing revenues.
Led efforts to restrict government's use of eminent domain
NFIB testified before the legislature and worked to pass legislation that prohibits government from using eminent domain to seize private property for economic development purposes, unless a detailed plan can gain approval of the Legislature. The bill will be fully implemented by July 1, 2007.
Enacted health-care tax credit: The existing health-care tax credit was doubled from $35 per month, per employee to $70 for the first year, for employers who have not provided health care for their employees in the past two years. Contributions to employee health savings accounts also qualify for the credit.
Protected small business from tax increases: NFIB/Kansas was part of a coalition that opposed any increase in sales, income or property taxes to fund increases for K-12 education. In the face of a Supreme Court order, NFIB held fast, arguing that the money could be found within the state's existing revenues.
Strengthened workers' compensation law: Legislation was enacted dictating how the date of an accident must be determined. This may lessen the employer liability for payment of claims related to long-term physical "aging" or aggravation of old injuries.
Improved unemployment law: S.B. 107 prohibits an employer's account under the employment security law from being charged unemployment benefits if the employee is a part-time employee, defined as less than 20 hours per week or less than $2,500 in base period wages.
Reduced franchise tax: NFIB/Kansas members called for a reduction of the franchise tax from $2 to $1 per $1,000 and for an increase in the maximum if possible. NFIB championed this important tax issue and achieved a tremendous victory by passing legislation that will lower taxes for about 31,000 Kansas small businesses. SB 147 rolled back the rate to $1.25 per $1,000 and the maximum was raised to $20,000. Businesses with under $100,000 in net worth are now completely exempt from the franchise tax. However, a separate $40 franchise fee, or registration fee, must be paid by all businesses.
Health Savings Accounts approved for Kansas: A critical issue to small-business owners is the rising cost of health care insurance. An important part of the solution to defray health insurance costs is Health Savings Accounts (HSAs). Congress recently passed HSAs, but Kansas law did not allow them. NFIB endorsed HSAs and successfully lobbied for passage of HB 2545, which brought Kansas law into conformity with federal law.
Stopped health insurance mandates: NFIB/Kansas members strongly expressed their desire to defeat any new health insurance mandates. NFIB/Kansas has been successful in stopping any new mandates for two years. As a result of NFIB's strong opposition, no new mandates even made it to any committee for consideration this past year.
Destination sourcing rule enforcement delayed: NFIB was part of a coalition that successfully delayed enforcement of destination sourcing rule as it relates to reporting Kansas sales tax. While enforcement has been delayed until January 2005, the state Revenue Secretary was granted authority to waive penalties and interest charges related to errors in reporting. NFIB will continue to seek another delay in enforcement of this rule.
Helped elect 30 candidates to the state legislature and four to the U.S. House and Senate: The NFIB/Kansas Political Action Committee endorsed 36 candidates during the 2004 election year for the state House and Senate. Thirty of NFIB/Kansas' endorsed candidates won their races for state office. NFIB's federal Political Action Committee endorsed five candidates in races for seats in the U.S. House and Senate and four won their races.
2000:
In the 2000 session, NFIB was successful in blocking the enactment of an increase in the Kansas minimum wage and a change that would have removed the exclusive remedy provision of the Kansas workers' compensation law.
NFIB opposed and helped block enactment of SB255 and HB2401, legislation that would have required non-union employees in a union shop to pay a "fair share representation fee" to a union, in lieu of dues. NFIB argued that Kansas is a "right-to-work" state, and employees who choose not to join a union should not be required by law to pay an "in lieu of dues fee" to be able to work.
NFIB opposed and helped block enactment of prevailing wage legislation, SB256 and HB 2402, which would have required contractors bidding on state projects to pay the prevailing area (union scale) to all employees. This bill would have effectively blocked many small businesses from bidding on state projects.
NFIB opposed and helped block enactment of legislation, HB2113, which would have diluted current law giving immunity to employers who provide truthful and factual information about present or former employees to prospective employers.
NFIB opposed and helped block enactment of SB 265, which would have increased the Kansas minimum wage to $5 an hour.
NFIB opposed and helped block enactment of HB 2602, which would have required contractors doing work for the state of Kansas or any political subdivision of the state to pay all employees a minimum wage of $9.37 an hour, provide paid leave (vacation), unpaid leave, and health insurance. The bill also would have imposed the same provisions on all cities, counties, school districts, and any other subdivisions of the state with taxing authority.
1999:
Corporations Allowed Access to Small Claims Procedure: In 1999 NFIB testified in support of legislation to allow corporations access to small claims court. SB97 defines a "person" as an individual, partnership, limited liability company or other association of persons for purposes of access to small claims court. NFIB supported enactment of SB97.
Reduced Unemployment Compensation Tax Rates: With the end of the moratorium on the collection of unemployment compensation scheduled for December 31, 1999, NFIB supported legislation to reduce the tax rates to less than half the pre-moratorium rate. SB270 also provides that excessive unexcused absenteeism is misconduct and a cause for termination of employment. NFIB testified in favor of and supported enactment of SB270.
Duplicate Employee Reports Eliminated: HB2050 is a paperwork reduction act. It eliminated the requirement for employers to report newly hired employees on their quarterly wage report to the Kansas Department of Human Resources. Employers no longer are required to question newly-hired workers about their child support obligations, which was a form attached to their federal I-9 report. NFIB testified in favor and supported enactment of HB2050.
1998:
Income Tax Credit: Providing an income tax credit equal to 15 percent of property tax paid on machinery and equipment will result in additional millions of dollars remaining in the Kansas economy to enable businesses to expand. NFIB endorsed and supported enactment of this tax credit for business.
1997:
Property Tax: Legislation reduced property taxes and provided a residential exemption.
Sales Tax: Legislation relieved retailers from sales tax remittance responsibilities for sales to purchasers with faulty tax exemption certificates.
Paperwork Reduction: Legislation eliminated the requirement for inclusion of balance sheet information with corporate annual report filings.
Workers' Compensation: NFIB helped block legislation creating 24-hour coverage pilot projects for workers' comp, which could have led to mandatory 24-hour health insurance.
1996:
Personal Property: Passed a $250 threshold exemption for commercial and industrial personal property.
Unemployment: Enacted the unemployment compensation tax moratorium.
Minimum Wage: Defeated bills to increase the minimum wage to $5.25 an hour.
