Taxes Delay Road Projects


TOPEKA, Kan. (AP) Kansas’ transportation secretary says a key part of a legislative proposal to lower sales and income taxes will force the state to delay highway projects.

Transportation Secretary Mike King issued a statement Monday about a provision of a tax bill before the Kansas House that diverts $382 million in revenues over two years from highway projects.

The House bill would follow up on last year’s income tax cuts by allowing further reductions in rates if state revenues grow by more than 2 percent. It also would allow the state sales tax to drop in July, as scheduled by law.

Lawmakers also must stabilize the budget, and so the House plan diverts highway funds.

Gov. Sam Brownback wants to cancel the sales tax reduction to stabilize the budget.


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AP Wire

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