Kansas Senate President Ty Masterson has derailed a new dual-rate tax plan just hours after it passed unanimously in the House.
As the Senate got ready to adjourn Wednesday afternoon, Masterson declared the bill materially altered and sent the bill to committee.
The procedural move is considered by political insiders as a “nuclear option” that essentially kills the bill. In short, it’s a shot across the bow of the House.
Masterson’s ruling can be overturned with a two-thirds vote of the Senate.
The vote to appeal his ruling is not subject to a roll call and is not debatable.
“The Senate established a strong position in favor of a single rate and large exemptions for low income Kansans with a bipartisan supermajority,” Masterson said.
“The decision removes the games and reflects our intent to negotiate a bill that delivers the best possible tax relief for all Kansans.”
A little more than a week ago, the Senate voted 29-11 to approve a $1.7 billion tax bill with the help of Republican state Sen. Dennis Pyle of Hiawatha flipping sides and Democratic Sen. David Haley of Kansas City saying that he was mistakenly recorded as voting for the bill.
House Speaker Dan Hawkins said the move in the Senate was “disappointing.”
“But this is part of the legislative process,” he said in a statement.
Three years ago, Masterson used the same procedural maneuver to sideline a medical marijuana bill that passed the House.
In that case, Masterson ruled that because the House had dropped the contents of the medical marijuana bill into an unrelated Senate measure, it was “materially altered.”
For its tax plan, the House had used a bill that originally cut privilege tax rates on banks, trust companies and savings and loan associations.
Vic Miller, the top Democrat in the House, said he hopes that Senate Republicans will see that the House plan is a “great bipartisan package.”
“I’m not sure what their interest is in terms of improving it,” Miller said.
“They can do what they do,” he said. “I hope they accept this one as the bipartisan package it is. It’s got relief in all directions for all people.”
Less than 24 hours earlier, Miller had warned that the plan could be rejected by the Senate, which passed a bill moving the state to single tax rate.
“If this plan passes tomorrow, hang tight,” Miller told the chamber Tuesday night.
“I think this may be what people out across the state have been looking for. Hang tight, if this goes to conference,” he said.
Democratic state Rep. John Carmichael of Wichita sounded a similar theme.
“We have to stand fast in the face of what may be attempts by our colleagues from across the rotunda,” Carmichael said.
“If we can make what we’ve done here tonight stick, we will have all earned our pay.”
