The bill amends current taxation laws in Kansas, specifically addressing income and privilege taxes. It establishes that any future decreases in tax rates will be contingent upon exceeding revenue estimates and maintaining a certain balance in the budget stabilization fund. The bill introduces new definitions related to tax revenue calculations, including "adjusted general revenue fund collections" and "excess fiscal year general revenue fund collections." It mandates that starting August 15, 2025, the director of the budget will assess whether revenue collections exceed inflation-adjusted base year revenues and whether the budget stabilization fund meets specified thresholds. If both conditions are met, the secretary of revenue will calculate and publish the corresponding tax rate reductions.

Additionally, the bill modifies the income tax rates for residents and non-residents, with specific adjustments to the tax brackets and rates. For instance, the lower income tax rate is set to decrease to 4%, and the normal tax rates for corporations will also be adjusted downward. The bill repeals the existing section of K.S.A. 2024 Supp. 79-32,110, effectively replacing it with the new provisions outlined in the bill. Overall, the legislation aims to create a more responsive tax system that adjusts based on actual revenue performance while ensuring fiscal stability through the budget stabilization fund.

Statutes affected:
As introduced: 79-32
As Amended by House Committee: 79-1108, 79-32
{As Amended by House Committee of the Whole}: 79-1108, 79-32