Kansas tax relief should help local small businesses - KOAM TV 7

Kansas tax relief should help local small businesses

Supporters of a newly signed tax bill in Kansas expect it to create tens of thousands of jobs.

Earlier this week Governor Sam Brownback singed one of the largest tax relief measures in Kansas history.

The new law cuts state income tax for all working Kansans by 14% to 24%, and eliminates state income taxes for more than 191,000 small business owners who meet specific qualifications.

The tax exemptions go into effect December 2013.

Lori Horton owns Celebrations by Lori in Pittsburg and says the elimination of taxes on her business will help her save to expand her business in the long run.

"Federally, they have always qualified a small business that makes $250,000 a year and that is just not realistic to be really considered a small business and especially in this part of the country," says Horton.  "As a very small business I do 90% of the things in my business myself and as much as I can to also help save on expenses and on payroll."

Last year Horton paid about $400 in state income tax.  With the cuts she hopes to save enough to eventually expand her store and possibly hire a new employee.

"This will definitely just be that small boost, that small little bit of help that small businesses always needs.  You never know what tomorrow will bring.  You never know if you open your door customers will come in or not.  So any place you can find savings or find help from anywhere is always going to be beneficial for a small business."

Those opposing the new law have concerns that the cuts in state funding could force increases in local property taxes to maintain city and county services.