TOPEKA - Late yesterday the governor issued a veto of House Bill 2669, establishing a funding mechanism for the State Treasurer's office by charging cash management (banking) fees to state agencies that utilize services. This measure was the culmination of a bi-partisan effort to fund the office. The 2004 Legislative session marked the second year in a row that such a plan has been passed by the Legislature.
"I am extremely disappointed in the governor's decision to veto House Bill 2669. This bill represents the hard work of numerous lawmakers, who have worked for two years to find a common sense solution to funding this office. I remain firmly opposed to the new unclaimed property tax that the governor continues to propose. The business model we began utilizing last year is working well and has eliminated the use of state general fund dollars and avoids the need for a new tax," said Treasurer Jenkins.
Under the governor's plan for the State Treasurer's office, Kansans would be required to pay a new tax on all unclaimed property that is returned to its rightful owner or their heirs. The state currently keeps the interest earned on the unclaimed property fund. Additionally, the governor's plan could amount to a double taxation on certain unclaimed assets. Constructing a budget based on this fluid revenue stream could amount to a tax ranging from 23% to 77%. *
