On April 16, 2021, Governor Laura Kelly vetoed S.B. 50, which would require sales and use tax collection by marketplace facilitators and would set a remote seller tax collection threshold. Marketplace facilitators would be required to collect and remit these taxes if, during the current or immediately preceding calendar year: (1) the marketplace facilitator made taxable sales in Kansas exceeding $100,000; or (2) made or facilitated taxable sales, on its own behalf or on behalf of marketplace sellers, for delivery into Kansas in an amount exceeding $100,000. The bill would implement tax changes in addition to the marketplace facilitator and economic nexus rules, and the Governor’s message regarding the veto mentioned concerns over economic development and a self-inflicted budget crisis. The Kansas legislature can override the governor’s veto with a two-thirds majority vote but when the Kansas House passed S.B. 50, it was three votes short of a two-thirds majority.
