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The Kansas state capitol. Credit: Adobe Stock

Financial Planning > Tax Planning

Kansas House Votes to Override Veto of Income Tax Overhaul Bill

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Gov. Laura Kelly of Kansas is clashing with lawmakers in her state over how to update the state’s tax rules.

She moved Wednesday to veto a version of state House Bill 2036, a state income tax restructuring bill. State House members followed up today by voting 104-15 to override the veto.

Kelly is a Democrat, and Republicans control both the state House and the state Senate, but state House Democrats joined state House Republicans in supporting the veto override. The vote for the override was 81-0 for House Republicans and 23-15 for House Democrats.

The Senate substitute version of House Bill 2036 would exempt Social Security benefits from state income taxes; increase the standard deduction and personal exemption amounts; reduce the number of individual income tax brackets to two, from three; reduce the individual income tax rates; and make other tax rule changes.

Kelley also vetoed state House Bill 2098, which would have created a motor vehicle sales tax transaction exemption and other state sales tax exemptions.

House members voted 99-20 to override that bill. Just two Republicans rejected that override, but Democrats opposed that override by a vote of 18 to 20.

Those two bills and a third bill that Kelly vetoed, the House substitute for the Senate Bill 96 child care center regulation bill, would cost the state $520 million in revenue per year, Kelly said in a veto announcement.

What it means: Clients in Kansas who were counting on getting state income tax breaks might not necessarily get those breaks, but state lawmakers seem inclined to override the vetoes.

The thinking: Kelly wants lawmakers to pass an alternative tax change package that she has proposed. She predicted that her package would reduce state revenue by just $433 million per year.

Kansas expects to spend $23.8 billion this year, according to the Kansas Policy Institute.

Veto overrides: Lawmakers need a two-thirds majority in both the House and Senate to overturn a veto.

In 2023, lawmakers overturned eight of Kelly’s 17 vetoes, according to the Topeka Capital-Journal.

The final version of the Senate substitute for House Bill 2036 passed 24-9 in the state Senate and 119-0 in the state House.

The final version of House Bill 2098 passed by a 34-1 vote in the Senate and a 102-17 vote in the House.

The Kansas state capitol, in Topeka, Kansas. Credit: Adobe Stock


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