TOPEKA, Kan. (AP) – A Kansas law-approved move combines the renewal of a tax critical to funding public schools with a proposed tax break for businesses that must close in the event of future emergencies or pandemics.
The bill, approved early Saturday, is a response from GOP-controlled legislation to frustrations businesses closed or restricted during the coronavirus pandemic last year and which still owed local property taxes. These taxes are based on the estimated value of a property and are therefore payable even if a business is not making any money.
The votes were 35-0 in the Senate and 108-3 in the House and sent the measure to Democratic Governor Laura Kelly.
Starting next year, counties would have to grant property tax breaks to businesses that are closed or restricted during a declared state of emergency based on the number of days the rules apply.
Local officials fear the discounts will undercut funding for services, especially public safety.
However, this proposal is tied to a statewide property tax that is expected to raise $ 752 million for public schools for 2021-22. The state constitution prohibits the levying of the tax for more than two years.
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