Kansas Considers Lottery Tax

The proposal would mean the state could no longer sell Powerball and Mega Millions tickets.

March 08, 2010

TOPEKA, KS - If you consider lottery tickets to be a form of tax, well you may soon see that tax taxed in Kansas. The Kansas House is looking at a measure that would tax lottery tickets, the Lottery Post reports. If approved, the state could no longer offer Mega Millions or Powerball tickets.

The House will vote shortly on the proposal, which also includes increasing taxes on churches and utility bills. Kansas faces a ballooning budget deficit and is trying to head off additional cuts to schools and other state initiatives.

The sales tax on lottery tickets would probably cost the state funds because it would have to withdraw from multi-state games. To participate in Mega Millions and Powerball, the Kansas Lottery consents to keep those ticket prices at a certain level. Adding sales tax to the ticket purchase would void that agreement.

The bill would generate $169 million each year, but that number isn??t close enough to close the budget deficit of nearly $500 million. "It??s got a long way to go," said state Secretary of Revenue Joan Wagnon, who was one of the first to ask the Legislature to look at eliminating some of the sales tax exemptions.

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