6
University Daily Kansan
Campus/Area
Wednesday, Feb. 26, 1986
Tax increase gets support of committee
TOPEKA — The Senate's tax committee yesterday recommended passage of Gov. John Carlin's proposed 1-cent sales tax increase bill, which had been delayed a day because Democrats on the committee were not prepared to vote.
United Press International
The bill was endorsed by the Assessment and Taxation Committee on a 6-5 show of hands that revealed both Republicans and Democrats were divided on the issue.
Increasing the sales tax to 4 percent from the current 3 percent is expected to raise $190.7 million in fiscal year 1987. The increase is a cornerstone of Carlin's budget.
Senate Majority Leader Paul Burke, R-Leawood, made a motion to endorse the bill, with a second from Sen. Leroy Hayden, D-Satanta, the ranking Democrat on the committee.
The committee amended the bill to allow retailers to keep part of the sales tax they collect, to compensate them for the cost of collecting and sending the tax to the state. Now retailers must collect the tax at their own expense.
The amendment would allow retailers to keep 2 percent of the tax they collect, up to $50 per month. Revenue Secretary Harley Duncan said that would cost the state $5.9 million per year.
The committee rejected an amendment that would have exempted sales of food from the sales tax.
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Plan would aid small business
The Associated Press
Bargain Show
TOPEKA - Small companies dominate the Kansas business scene, but still need all the support they can get. A Senate committee was told yesterday.
A Kansas Small Business Development Center official told the panel that her agency was requesting $300,000 for the next fiscal year to keep working to keep small business in Kansas afloat.
"Numerous studies have shown that businesses are particularly vulnerable in the first five years of life and that failure comes most often from lack of capital and an absence of sound management and planning practices," Susan Osborne-Howes, director of the center, told the Senate Labor, Industry and Small Business committee.
Osborne-Howes said the headquarters of her agency was in the College of Business Administration at
Wichita State University and oversaw other centers sponsored by Kansas's six state universities, Washburn University of Topeka and Johnson County Community College.
Only 145 businesses in the state are not classified as small, said Osborne-Howes. That means 99.8 percent of all Kansas businesses are in the small category, which includes all companies that employ under 500 workers.
Officials of small businesses that have problems go to the center for counseling in areas such as bookkeeping and marketing, she said. The center has also helped some farmers with business decisions.
The center has requested that the Kansas Legislature approve the money for the coming budget year as part of the State Board of Regents budget. The money would then go to Wichita State to be distributed between the various centers, Osborne-Howes said.
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