What can you expect from Kansas’s new tax cuts?

TOPEKA (KSNT) – Kansas Gov. Laura Kelly has approved major tax cuts Friday, ending a political stalemate with state lawmakers.

The new legislation:

• Moves Kansas from three personal income tax rates to two and cuts the highest rate from 5.7% to 5.58%.
• Decreases what homeowners will pay to the state to help finance public schools. The 15.6% cut in that tax for the owner of a $250,000 home amounts to $76 a year.
• Increases the income automatically exempted from taxes so that a married couple filing jointly will not pay any tax until they earn more than $25,000, whether they have children or not.
• Stops taxing retirees' Social Security benefits instead of taxing the entire amount once someone earns more than $75,000.
• Doubles an income tax credit for childcare expenses.
• Provides a 14% cut in the tax paid by banks, savings and loans and other financial institutions instead of the corporate income tax, mirroring past cuts for other businesses.

The Democratic governor and the Republican-controlled legislature reached a compromise totaling $1.23 billion in cuts over the next three years. Kelly had vetoed three previous plans.

The governor also signed a plan to lure the Super Bowl champion Kansas City Chiefs and Major League Baseball's Royals to Kansas. The legislation authorizes Kansas to issue bonds to help pay for new stadiums.

The Associated Press contributed to this report.