The pandemic induced counties throughout the state to concern various ranges of enterprise shutdown orders meant to gradual the unfold of a life-threatening virus.
Now companies that misplaced their capacity to earn money throughout the pandemic need a tax refund for the time they have been compelled to hold “closed” indicators.
Lawmakers heard competing arguments about property tax rebates this week.
Companies say the closures put them on the point of shutting down for good. Native governments warn they don’t have the sources to offer mass tax refunds.
A pending bill is a primary step in a bigger dialogue looming earlier than lawmakers: Ought to both the state or native governments be required to compensate the companies that public officers ordered to shut throughout the pandemic?
“We’re combating for the survival for our enterprise,” Nick and Jake’s eating places co-owner Kevin Timmons instructed lawmakers.
The laws would require counties to refund taxes paid by property house owners throughout instances the county ordered companies closed.
Timmons mentioned companies like his eating places within the Kansas Metropolis space needed to shut by authorities orders and will get a break on taxes due to it.
“Decreased revenues by way of lockdowns and restrictions have compelled us to make decisions that have been beforehand unthinkable,” he instructed lawmakers. “Will we pay property taxes or will we pay payroll?”
Authorities officers argue it’s not so simple as simply giving companies again the taxes they paid.
“The idea of the laws is we’re sitting on piles of cash,” Sedgwick County Commissioner Jim Howell mentioned. “That’s not true. We’ve really spent these {dollars} offering companies.”
The Kansas Affiliation of Counties mentioned it’s arduous to estimate the total influence of the invoice, however in Johnson County alone the price of the refunds may whole $177 million.
Statewide, KAC Legislative Coverage Director Jay Corridor estimated the invoice may imply counties refunding a half billion {dollars} in property taxes. He mentioned that may trigger a tax shift. The refunds to enterprise property house owners must be paid with taxes on householders.
“That’s going to in the end drive up taxes on our residential taxpayers,” Corridor instructed lawmakers, “as a result of the county goes to must get that cash from someplace.”
Corridor pointed to potential issues with the wording of the invoice. For instance, a restaurant proprietor might lease a constructing and pay the property taxes by way of their hire, however the invoice says the proprietor of the property could be the one to obtain the tax refund.
Republican Rep. Samantha Poetter mentioned lawmakers must take motion or struggling companies may shut for good and take away all of the tax income they generate.
“If one thing isn’t executed to alleviate this concern … the county goes to be out much more,” she mentioned. “I’m taking a look at it as a long-term answer.”
Deborah Shaar of KMUW contributed to this report.
Stephen Koranda is the Statehouse reporter for Kansas Public Radio and the Kansas Information Service. You may comply with him on Twitter @kprkoranda.
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