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, while establishing a three-factor test for manufacturers of alcoholic liquor. The bill also mandates deductions from income based on these factors and aims to lower corporate income tax rates. Notably, it modifies the timeline for the certification of corporate income tax receipts and the reduction of corporate tax rates, shifting the timeline from fiscal year 2026 to 2028. Additionally, it outlines new methods for apportioning business income for railroads and interstate motor carriers, as well as various provisions for other taxpayers.

Moreover, the bill amends several sections of the Kansas Statutes Annotated and introduces new definitions related to income allocation and apportionment. It establishes a multistate tax commission to facilitate uniformity in tax laws among participating states, detailing its organization, powers, and financial responsibilities. The commission will oversee interstate audits and dispute resolution processes related to tax apportionments. The bill also clarifies the criteria for determining the location of sales for tax purposes and revises tax rates for individuals and corporations, effective for tax year 2024 and beyond. Overall, the bill aims to streamline tax regulations, enhance compliance, and promote equitable tax liability determination for multistate taxpayers.

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