- Associated Press - Wednesday, May 27, 2015

TOPEKA, Kan. (AP) - The Kansas Senate has rejected a proposal that would overhaul how the state taxes cars, pickups and SUVs.

Senators voted 27-5 on Wednesday to strip the proposal from a plan for raising taxes to close a projected $406 million budget shortfall for the fiscal year beginning July 1.

The proposal was included in the plan by the Senate tax committee at the urging of Chairman and Wichita Republican Les Donovan. He is a car dealer.

The proposal lowers the property taxes collect annually on vehicles by changing how they’re valued. Critics said the proposal would reduce revenues for local governments.

The state also collects its 6.15 percent sales tax each time a vehicle is sold. Donovan contends the property tax decreases would encourage extra sales, boosting revenues.


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