University Daily Kansan, April 7, 1983
Page 7
Joint committee to discuss oil tax again
By DIANE LUBER Staff Reporter
TOPEKA — A conference committee picked up the severance tax issue yesterday that House Speaker Mike Hayden called the "political turbaby" and decided to meet again today for more debate.
The conference committee, made up of three House and three Senate members, was created to work out the House and Senate severance tax plans.
After legislative staff reviewed those differences, the committee tentatively agreed to go along with the House version of the severance tax on three counts before adjourning for more discussion today at noon.
THE COMMITTEE AGREED to mit a session, included in the Senate version, that would have provided $1 million of emergency energy assistance plan for the elderly.
The committee is tentatively assigning the $20,000 to the first payment of the loan. The Senate
originally wanted the first payment made July 31.
But they could not agree on the tax rates, the distribution of severance tax revenues, the total revenues they hoped to collect from the tax, what production should be discontinued, and the tax on whether the severance tax should be discontinued on July 1, 1986.
Both the House and Senate set a tax rate of 8 percent on oil and natural gas production. The Senate also included an 8 percent tax on production of coal and
STATE SEN, CHARLIE Angel, R-Plains, said he was unwilling to begin discussion with the rates because the committee might want to readjust the rates after they had made other changes in the plan.
So they tried for an agreement on the revenue the tax would produce.
"Let's just agree on a figure," House Speaker Hayden said. "No bottom. No top.
op.
"Make us an offer."
Make an offer — $93 million as their bottom line for revenue from a tax on oil and gas.
Hayden criticized the senators for not compromising.
"You want both pieces of the cake," he said. He accused the senators of holding on to coal and salt while not increasing the revenues they expected
"We'll split the difference with you — $105,45 million," Hayden said.
THE HOUSE VERSION of the tax would have produced revenues of $109.9 million; The Senate version, including the tax on coal and salt, would have produced $101 million.
When the senators said they could not accept Hayden's offer, the committee discussed the distribution of the tax revenues.
State Sen. Joseph Norvell, D-Hays, offered to set the amount of the tax revenue that would be returned to counties and school districts at 7 percent of the tax revenue produced.
The Senate version would have returned 8 percent, and the House version would have returned 6 percent to counties and school districts, where the oil and gas were produced.
The remainder of the severance tax
revenue would go to the state general fund.
But Hayden said that the House members could not agree on the distribution of the revenue until the budget had reached agreement on the tax rate.
State Sen, Jim Allen, R-Ottawa, said the sunset date was probably one of the priorities in the Senate.
They finally discussed the sunset date in the Senate version of the tax, the provision that would call for review the severance tax on July 1, 1986.
One of the largest taxes in state history should be reviewed in two or three years, he said.
SO THEY TRIED TO reach agreement on the oil and gas production that would be exempted from the tax, but failed.
But Hayden objected to the sunset provision.
The severance tax would be a major source of revenue for the state, he said. The state would need that source to be dependable so that it could plan its budget based on severance tax revenue.
Industries balk at Carlin's tax plan
By DIANE LUBER Staff Reporter
Representatives of several Kansas industries told a House committee yesterday that Gov. John Carlin's proposal to increase some corporations' state income taxes discriminated against those industries that the state should want to attract.
The governor's proposal discriminates against capital-intensive industries, including heavy manufacturing industries and utilities, said Ron Hall, chief accountant for the Southwestern Bell Company.
BUT THOSE INDUSTRIES are desirable to the state because their capital investment indicates a company is doing business that businesses don't have to make, he said.
"A service industry can close its doors tomorrow," he said.
Hall testified before the House Assessment and Taxation Committee on a bill containing Carlin's proposal to reduce by 15 percent the deductions for depreciation that corporations could claim against their state income tax.
Mark Beshears, director of taxation for the Kansas Department of Revenue, said the proposal would yield $15
million in fiscal year 1984, which begins July 1.
"Since fiscal year 1981, corporate income tax collections in actual dollar receipts and as a percentage of general fund receipts have declined steadily," he said. "A major cause of this decline has been Kansas' conformity to the organized depreciation provisions of the Economic Recovery Tax Act of 1981."
THE STATE ALLOWS corporations to follow the same depreciation deduction schedules that the federal government established in the tax act.
State Rep. Bill Reardon, D-Kansas City, said that because Kansas followed the same schedules, corporate income tax payments had decreased.
This bill is an attempt to recoup some of the losses the state has suffered because the federal schedules were followed, he said.
California has experienced an explosion of high-technology development, Reardon said. Kansas has expressed an interest in attracting high-technology
But California is one of ten states that does not employ the depreciation deduction schedules established by the federal government, he said.
"In the true sense, utilities are not taxpayers but are simply tax collectors. Public policy allows public utilities to recover in their cost of service taxes which have been assessed upon them," he said. "An increase in taxes upon us puts more pressure on the citizens of Kansas burden in their electric bills."
secretary and assistant treasurer for Kansas Power and Light Company, said the proposal would increase the cost of electricity and gas in the state
JERRY COURINGTON, assistant
KP&L's primary tax deduction is depreciation, he said, and if this bill passes, the utility's state income taxes would increase by $700,000.
"THIS MEANS THAT our company alone in one year would be providing 5 percent of the governor's projected $15 billion in revenue, expected to generate." Corrion said.
Ron Gaches, spokesman for the Ron Gaches, spokesman for the Kansas Association for Commerce and Industry, called the proposal 'another step in the wrong direction' on the backs of the state's businessman. $^{10}$
The Legislature during this session has already approved measures that would force the state's businessmen to provide $270 million in accelerated or additional tax revenues during fiscal years 1983 and 1984, be said.
KC police chief requests firings
By United Press International
KANSAS CITY, Mo. — The Board of Police Commissioners will act on a request April 19 to fire four police officers who allegedly beat and paralyzed a man stopped for traffic violations.
Police Chief Norman A. Caron yesterday asked the board to fire Sgt. Lowell Fundum, Sgt. Richard Steffen, Stm. James Jordan, and officer David Williams. His recommendation came following a six-week internal investigation that Omar Guilley Feb. 26, 1983, involving Albert Gulley, 4 of Kansas City, Mo.
GULLEY FILED A $5.5 million lawsuit in late March against two unidentified officers, the police board, and former officer Michael Holmes.
in the suit, Gulley alleged he was beaten at the Central Patrol division, then taken to the City Jail where he was denied medical treatment for 20 hours.
Gulley said he was stopped by police Feb. 26 for suspected traffic violations. He was in fair condition yesterday at Truman Medical Center with a spinal cord injury that has left him paralyzed from the neck down.
Senate committee OKs plan for state lottery referendum
By DIANE LUBER Staff Reporter
TOPEKA — Members of the Senate Federal and State Affairs Committee cannot seem to get alcohol and gambling off their minds — or their agendas.
The committee, which two weeks ago approved resolutions on pari-mutuel betting and liquor by the drink, yesterday approved and sent a resolution to the Senate that would give Kansans an opportunity to vote for or against a state-owned and operated lottery.
But that was after they had heard testimony on a bill that would provide for the licensing of farm wineries — wineries that produce wine from agricultural products grown in the state.
"We are going to have to find other sources of revenue for the state," Reilly said. "Until we bite the bullet and decide where the money is coming from, we're not going to be able to do business as
Committee Chairman Edward Reilly Jr., R-Leavenworth, broke a tie vote in the committee to pass the lottery resolution.
STATE SEN. BILL Morris, R-Wichita, one of the sponsors of the resolution, told the committee dur-
ing a discussion that he would lottery could add between $50
million and $70 million to state funds during the first year of operation.
The Rev. Richard Taylor, spokesman for Kansans for Life at Its Best, opposed the lottery resolution, saying that the state should look to traditional methods, such as increased sales, property, gasoline and income taxes, to increase state revenues.
"The most alcoholic nation in the world is France," he said.
Taylor also opposed the winery bill.
Farmers in France are so entrenched in wine production that the French government has been unable to restrict production in its attempts to deal with the problem of alcoholism, he said.
ROBERT RIZZA, a doctor from Halastad who has 10 acres of land in grape production, was more enthusiastic about the bill.
"It beats wheat," he said after telling the committee about a grape grower in the eastern United States who earns $40,500 an acre from his farm.
Until 1900. Kansas was one of the top 10 grape-producing states in the Union, he said. And now it is last.
Under the bill, farm wineries would be allowed to produce and sell domestic wines to consumers for off-premei consumption and would be permitted to serve free samples of wines at the winery.
House OKs natural gas freeze
Democratic lawmakers made a double-barreled attempt yesterday to pass Gov. John Carlin's proposal to freeze the price of natural gas sold in the state and the House overwhelmingly approved the measure.
But in the Senate, Sen. Jack Steineger, D-Kansas City, failed in his attempt to get the Senate president to transfer him to the impeachment proposal, from the committee which killed it Tuesday to another committee.
House lawmakers voted 104-18 to approve and send a bill, which had earlier in the day been amended to allow price-freeze proposal, to the Senate.
State Rep. George Dean, D-Wichita, said he proposed the amendment
because the Legislature had complained for too long about the high price of natural gas without taking steps to correct the problem.
OTHER SUPPORTERS of the proposal said it would save Kansas consumers $100 million. The bill would freeze the price of natural gas sold within the state for the next year.
State Rep. Keith Farrar, R-Hugoten,
opposed the bill, saying, "You go ahead
and vote this in because you think it's
good for you and you think it's going
to cost you more in the end."
Gas suppliers are unwilling to supply gas at low prices, he said. As a result some utilities have been forced to go underground to buy gas at a fee for a thousand cubic feet.
CLASS OF 1983! Did you know that your KU Alumni Association—
Is your best way of keeping informed of major activities on the Hill (Reunions, Homecoming, etc,)
It's our 100th Birthday and you're our Centennial Class! Take advantage of this and many more benefits by joining the KU Alumni Association at special discount rates exclusively for May '83 graduates
And join in the fun at the 6th Annual Senior Open House and Party
Wednesday, April 13
7:30-11:00 p.m.
403 Kansas Union
★ Free Refreshments (beer)
and soft drinks Giveaways
- and so much more
Come by the KU Alumni Association Office, 403 Kansas Union and register for great prizes and more. April 11-13 from 8:00-12:00 and 1:00-5:00 daily.
Prize Drawings
- Campus and Alumni
Class of 1983-Be a part of history
--and
NAME
Mailing Address
City
State      Zip
For every $12 membership, the Alumni Association will contribute $2 toward the 1983 Senior Class gift, Mail or hand your check and this coupon to the Alumni Association.
Gifts and prizes contributed by KU Endowment Association, Kansas Union Bendout ACA Illustrations by Paul Color
"The World's Master of Chamber Music"
The University of Kansas School of Fine Arts Chamber Music Series closes out its 1982-83 season with
3:30 p.m. Sunday, April 10, 1983 Crafton-Preyer Theatre/Murphv Hall
guarneri STRING QUARTET
ARNOLD STEINHARDT,Violin
Quartet in 6 minor, op. 74, no. 3
"The Rider"
Quartet, no. 11
River in E Flat
JOHN DALLEY, Violin
Haydn
Piano Quintet in E Flat
Barber
MICHAEL TREE, Viola DAVID SOYER, Cello with LYDIA ARTYMIW, Piano
Tickets on sale in the Murphy Hall Box Office
All seats reserved/For reservations, call 913/864-3982
Public prices: $8/$7; special discounts for students and senior citizens
Schumann
K
Partially funded by the Kansas Arts Commission, the National Endowment for the Arts, and the KU Student Activity Fee.
The Artis
We've found the only way to make cotton clothing more appealing in spring.
We've put it on sale.
All men's cotton sweaters
Twenty-five percent off.
Selected men's indian madras shirts
$14.88.
Selected men's cotton knit shirts
Twenty-five percent off.
All ladies' cotton sweaters
Thirty percent off.
All Polo ladies' knit shirts
$17.50.
Thursday, Friday and Saturday.
Thursday, Friday and Saturday
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841 Massachusetts