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, such as "adjusted general revenue fund collections" and "excess fiscal year general revenue fund collections," which will be used to determine if tax rate reductions can be implemented. The bill also specifies that the director of the budget will assess revenue collections annually, starting August 15, 2025, to certify any excess revenue that could lead to tax rate reductions.

Additionally, the bill modifies the income tax rates for both resident and nonresident individuals, as well as corporations. It sets new tax brackets and rates, including a reduction of the lower income tax rate to 4% and adjustments to corporate tax rates. 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 structured approach to tax rate adjustments based on 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