Kansas State Legislature Considers Sales Tax Exemptions, Workers Comp

While we monitor all states for legislation that could effect our members, our Association has retained a lobbyist to protect our interests in Kansas for the 2015 session. We have not yet seen any proposed legislation related to dealer buyback, warranty or lemon laws, but we did note some other relevant activity.

Sales Tax Exemptions: On Feb. 19, the Senate Tax Committee introduced several bills, including one that would eliminate the farm machinery and equipment sales tax, one to eliminate property tax exemption for 20 mills, one to eliminate the exemption for wind generation, and one to eliminate the sales tax exemption on utilities. Sen. Steve Abrams also is working on a bill to review all exemptions.

Workers Compensation: The Senate Commerce Committee on Feb. 18 heard SB 167, which would move from the recently adopted 6th edition back to the 4th edition of the American Medical Association’s guidelines for evaluation of injuries. Three years ago, the Legislature authorized a move from AMA 4th edition guide to the 6th edition guide. The newer edition, published in 2007, includes a guide for evaluating impairments that adopts 20 years of medical improvements in treating injuries, which means workers with permanent impairments receive less in compensation payments from employers for job-related injuries. The older edition was based on 1992 medical procedures.

Secretary of State Kris Kobach testified in support of the bill and said the new guide may not provide enough benefits for injured workers to be constitutional. He said, if the new version of the AMA guide is determined in Kansas to not provide compensation to an injured worker in a reasonable manner, courts could allow civil lawsuits against employers by injured workers. Several lawyers also testified in support of the bill. Employers and the Kansas Chamber of Commerce testified against the bill. Chairman Julia Lynn said the committee wouldn’t advance legislation on returning to the 4th edition during the 2015 session.

If you would like to stay abreast of these issues, please contact Vernon Schmidt at vernon@FarmEquip.org and ask him to send you updated information as it becomes available.