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, along with a three-factor test for manufacturers of alcoholic liquor. The legislation aims to reduce corporate income tax rates and mandates that the director of the budget certify corporate income tax revenues starting in fiscal year 2028, which will influence future tax rate adjustments. Key amendments include a new apportionment method for business income effective from 2027, a deferred tax impact deduction for publicly traded companies, and updated definitions related to business income and financial organizations.

Additionally, the bill outlines specific apportionment methods for railroads, interstate motor carriers, and qualifying telecommunications companies, while modifying the timeline for implementing these methods. It introduces a deferred tax deduction that can be carried forward to future tax years, contingent upon filing a statement by July 1, 2027. The legislation also establishes a multistate tax commission to facilitate uniformity in tax laws across participating states, detailing procedures for interstate audits and arbitration for tax disputes. Overall, the bill aims to streamline tax calculations, clarify definitions, and potentially lower tax burdens for businesses operating in Kansas, while repealing certain existing statutes to implement these changes.

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