Antiquated law causes problems for small business
Greg Shondell was shocked when he prepared to file his Kansas income return. Normally he would pay Kansas taxes based on 85 percent of his revenue and pay Missouri based on 15 percent of revenue.
Unfortunately, Kansas is one of only a few states that would force Shondell’s company, Heathwood Oil, to pay Kansas taxes based on 130 percent of revenue.
Shondell told of his dilemma at a meeting of the Legislative Committee of the Kansas City, Kansas, Area Chamber of Commerce Friday, April 9 via ZOOM. Shondell is a longtime member of the Chamber and its Legislative Committee. Heathwood Oil can trace its roots to 1926. The family owned company in Kansas City, Kansas, spans four generations.
Mike Smallwood, the chairman of the Legislative Committee, said unfortunately it was too late to do anything during this session of the Kansas Legislature. However, he assured Shondell that the Legislative Committee would include this issue in its 2022 agenda.
One of the major concerns of the Kansas Legislature. has been the problems that have besieged the Kansas Department of Labor. A 1970s computer system has failed as thousands of Kansans have complained they cannot receive payments from legitimate claims. In the meantime, fraudulent claims from unknown sources estimated at more than $600 million have been paid out to those who hacked KDOL files. The Kansas House and Senate approved a compromised bill aimed at correcting the problems at KDOL.
The Legislature has failed to pass a major overhaul of Kansas Education which included about $5.8 billion in funding for schools. The measure narrowly passed the Kansas House, but failed on a tie vote in the Kansas Senate. Critics of the bill, including the Kansas State Board of Education and the National Education Association, charged that the bill would divert public funds to private schools. Legislators will face the issue when they return next month.
Murrel Bland is the former editor of The Wyandotte West and The Piper Press. He is executive director of Business West.