The bill amends existing tax legislation in Kansas, specifically addressing income and privilege taxes. It establishes that any future decreases in tax rates will be contingent upon exceeding revenue estimates. The bill introduces new definitions related to tax calculations, such as "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 the previous fiscal year's revenue exceeds inflation-adjusted base year revenues, which will trigger potential tax rate reductions. The bill also specifies that income tax and privilege tax rate reductions will be calculated based on this excess revenue.

Additionally, the bill modifies the tax rates for corporations, trust companies, and savings and loan associations, establishing specific normal tax and surtax rates for these entities. It repeals previous sections of the law that governed these taxes, effectively updating the tax structure to reflect the new provisions. The income tax brackets and thresholds are also adjusted to align with the new rates, ensuring that the tax system remains responsive to revenue changes while providing clarity on tax liabilities for individuals and businesses in Kansas.

Statutes affected:
As introduced: 79-32
As Amended by Senate Committee: 79-1108, 79-1107, 79-32