The bill proposes comprehensive changes to the taxation framework for businesses and financial institutions in Kansas, primarily focusing on the apportionment of income. It introduces a single sales factor for business income and a receipts factor for financial institution income, with a three-factor test specifically for manufacturers of alcoholic liquor. Starting from tax years commencing on or after January 1, 2027, all business income will be apportioned solely by the receipts factor, while the bill also establishes a deferred tax impact deduction for publicly traded companies. Additionally, it modifies the apportionment method for railroads and interstate motor carriers for tax years before January 1, 2027, and allows taxpayers to claim other available tax credits before utilizing a deferred tax deduction.

Moreover, the bill amends various sections of the Kansas Statutes Annotated related to income and privilege taxes, including definitions for terms such as "financial organization" and "nonbusiness income." It establishes a multistate tax commission to oversee tax administration and ensure uniformity across jurisdictions, with the authority to adopt regulations and manage audits. The bill also outlines procedures for interstate audits and arbitration for tax disputes, while clarifying that it does not affect states' power to set tax rates. Overall, the legislation aims to streamline tax calculations, enhance compliance, and provide tax relief for businesses in Kansas.

Statutes affected:
As introduced: 79-1129, 79-3271, 79-3279, 79-3287, 79-32
As Amended by House Committee: 79-1129, 79-3271, 79-3279, 79-3287, 79-32
{As Amended by House Committee of the Whole}: 79-1129, 79-3271, 79-3279, 79-3287, 79-32, 79-4301