Sebelius signs tax relief for Kansas businesses
Laid-off workers to also benefit from bill signed today

Kansas businesses will receive $175.8 million in tax relief over the next two years thanks to a bill signed today by Governor Kathleen Sebelius.

Sebelius’ signature lowers the unemployment insurance tax for businesses, something she proposed in December as a way to help continue the state’s economic growth.

“Kansas businesses have been growing and creating jobs, and we want to continue that progress.  This tax relief will help keep Kansas one of the best states in the nation in which to do business,” said Sebelius.

The tax relief is made possible thanks to a surplus in the fund used to pay unemployment benefits to workers.  The relief will be retroactive to January 1 of this year.

In addition to the tax relief, Kansas workers who have lost their jobs will receive additional help.  Workers who are part of a large layoff will not have to wait to receive benefits, unlike the current system which requires them to wait one week after being declared eligible. Workers who are not part of a large layoff will still wait one week, but will receive a check for that first week if they are unemployed for three consecutive weeks.  These changes will take effect July 1, 2007.

“Kansas’ first unemployment insurance bill was signed into law 70 years ago this month.  This new help for laid-off workers is a continuation of our commitment to the men and women who are the backbone of every business, large and small, throughout our state,” Sebelius said.          Under the bill, if the Employment Security Trust Fund balance falls below a prescribed amount, in any subsequent years, tax rates would return to the previous percentages.

The bill, SB 83, will take effect after its publication in the statute book.

Additionally, HB 2168, which was originally reported as having been signed Friday, was signed today.  To date, Governor Sebelius has signed 17 bills during the 2007 Legislative Session.

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