The proposed bill seeks to amend Kansas income taxation laws, particularly enhancing personal exemptions and property tax regulations. It introduces an additional personal exemption for head of household tax filers and increases the exemption for certain disabled veterans. The bill also modifies the definition of household income and transitions to a single sales factor for most businesses in apportioning business income, while establishing a receipts factor for financial institutions. Additionally, it mandates a reduction in corporate income tax rates based on increased corporate tax receipts, with new rates to be published by October 1, 2028. The bill also provides specific property tax exemptions for personal property such as off-road vehicles and marine equipment, effective for taxable years starting after December 31, 2025, and streamlines the exemption request process for property owners.

Moreover, the bill introduces a framework for calculating deferred tax impact deductions for unitary business groups, allowing deductions from net business income before apportionment. It amends existing laws regarding the apportionment of business income for railroads and interstate motor carriers, removing the term "for-hire," and establishes new rules for various taxpayers. The bill also modifies the criteria for determining sales locations for tax purposes and includes provisions for the multistate tax compact to facilitate equitable tax apportionment. It outlines the structure and powers of the multistate tax commission, including the authority to adjust tax thresholds and manage finances. Additionally, the bill exempts all watercraft from property taxes starting January 1, 2026, and repeals several existing statutes related to property taxation, ensuring a more efficient tax structure in Kansas.

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