(April 25, 2024) – Yesterday, Gov. Laura Kelly vetoed Substitute for House Bill 2036, the tax reform legislation. The fiscal note related to the bill is $520 million annually, and the governor pointed to a new proposal on taxes estimated to be $433 million annually and includes the following components:

• Accelerates the elimination of state tax on groceries
• Keeps the current three tax brackets but lowers each
• Increases the standard deduction, personal exemption and dependent care expenses credit
• Eliminates the state taxes on all Social Security income
• Cuts property taxes by exempting the first $125,000 of all homes from the statewide property tax levy

The legislation, which previously passed the House on a vote of 119-0, and the Senate on a vote of 24-9, may see a veto override attempt when legislators return next week.