TOPEKA - In a move now familiar to the State Treasurer's office, the governor issued a veto of Senate Bill 123, which would have established a permanent 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 and marked the third 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 Senate Bill 123. This bill represents the hard work of numerous lawmakers, who have worked for three years to find a common sense solution to funding this office," Treasurer Jenkins said. "I remain firmly opposed to the new unclaimed property tax that the governor continues to propose. The business model we have used for the past two years is working well and has eliminated the use of state general fund dollars and avoids the need for a new tax."
Under the governor's plan for funding 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. The governor's plan would require a tax as high as 25 percent to be placed on unclaimed property being claimed by citizens where as other states who tax unclaimed property do not exceed five percent.
"If we were to move forward with the governor's proposed funding method, nearly $2 million would be stripped from Kansans pockets," Treasurer Jenkins said. "That simply is not right."
