Here are our small business owner’s prioirities when lawmakers return on April 25th.
NFIB, or the National Federation of Independent Business here in Kansas, is urging legislators to get back to the table and finish what they started this legislative session: making sure Kansas small business owners have the resources they need to move forward during the recovery. Earlier this month, the Kansas legislature gaveled out for their spring break without passing important small business legislation.
“What our small business owners need right now is the confidence to know that the legislature has their back while they continue to recover from the pandemic,” said Dan Murray, NFIB State Director in Kansas. “However, when they leave to go on spring break without passing important tax reform for our hard-working mom-and-pop shops, it’s concerning to our job-creating entrepreneurs, many of whom are not out of the woods yet when it comes to the economic implications from the COVID-19 pandemic. NFIB is urging lawmakers and the governor to remember the sector that drives our state’s economy: our small business owners.”
Here are our small business owner’s prioirities when lawmakers return on April 25th:
- Utility Sales Taxes – Eliminate state sales tax on most utilities that small business owners pay. The legislation would bring parity with the residential sector. Tax related costs and compliance have historically created immense anxiety for small business owners. Right now, small businesses are managing challenges including labor shortages, rising inflation, supply chain disruptions, and COVID-19 variants. (See below). This bill would lower tax costs and compliance on businesses still struggling to recover from the pandemic and government-forced shutdowns.
- Sales Tax Remittance – This legislation provides businesses compensation for collecting and remitting sales taxes to the state. Right now, Kansas retailers are required to collect and remit state and local sales taxes to the Department of Revenue. This onerous mandate comes at a cost to our retailers, particularly our small businesses, in both time and technology. Yet, our small businesses are not compensated for serving as the tax collector for the state. Many other states provide a vendor compensation allowance to retailers, allowing them to retain a percentage of the revenue collected as compensation for their administrative costs.
- Plastic Container Ban – This bill would prohibit local municipalities from adopting or enforcing regulations which restricts, taxes, prohibits or regulates the use, disposition or sale of containers used in food consumption or transportation of merchandise. Many small businesses buy these products in large quantities to take advantage of economies of scale. Restricting their ability to purchase certain products drives up material costs which prevents small business owners from investing in capital improvements and increased employer wages and benefits. Additionally, regulatory compliance is costly and burdensome. Small business owners are asking the legislature to override the Governor’s veto of the bill. YOU CAN TAKE ACTION ON THIS BILL HERE.
As the most recent NFIB data shows, small businesses are still trying to get back on their feet after the COVID-19 pandemic.
- About three-quarters (73%) of small business owners have increased their average selling prices due to supply chain disruptions and/or increased compensation due to staffing shortages.
- Over half (51%) of small business owners reported supply chain disruptions had a significant impact on their business. Another 30% of owners reported it had a moderate impact and 14% reported a mild impact.
- 24% percent of owners are currently experiencing a significant staffing shortage and another 18% are currently experiencing a moderate shortage.