The proposed bill seeks to amend Kansas income taxation laws, focusing on personal exemptions, property tax regulations, and the apportionment of business income. It introduces an additional personal exemption for head of household tax filers and increases the exemption for certain disabled veterans. The bill modifies the definition of household income and transitions to a single sales factor for most businesses, while establishing deductions based on these new methods. It also reduces corporate income tax rates linked to certified revenue increases. Additionally, the bill provides specific property tax exemptions for off-road vehicles, motorized bicycles, trailers, and marine equipment, effective for taxable years starting after December 31, 2025, and requires property owners to file detailed requests for exemptions.

Moreover, the bill outlines a framework for deferred tax impact deductions for taxpayers, particularly those in unitary groups, and modifies the criteria for determining sales locations for tax purposes. It introduces provisions for the multistate tax compact to facilitate equitable tax apportionment and establishes a multistate tax commission to oversee these regulations. The bill also clarifies the taxation of watercraft, stating that all watercraft will be exempt from property taxes starting January 1, 2026, and repeals several existing statutes related to property taxation. Overall, the legislation aims to streamline tax processes, provide financial relief to specific groups, and enhance cooperative tax administration among states.

Statutes affected:
As introduced: 79-32
As Amended by House Committee: 79-32
As Amended by Senate Committee: 79-32, 79-4508a
Enrolled: 79-213, 79-1129, 79-3279, 79-3287, 79-32, 79-4301, 79-4508a, 79-5501