The bill amends existing tax legislation in Kansas, specifically regarding 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 and calculations related to adjusted general revenue fund collections and inflation-adjusted base year revenues. It mandates that starting August 15, 2025, the director of the budget will assess whether the previous fiscal year's revenue exceeds the 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 the excess revenue, with adjustments to the income tax brackets and thresholds accordingly.

Additionally, the bill amends specific sections of the Kansas Statutes Annotated (K.S.A.) related to the normal and surtax rates for banks, trust companies, and savings and loan associations. For tax year 2024 and beyond, the normal tax rates for these entities are set at 1.94% and 1.93%, respectively, with corresponding surtax rates. The bill repeals existing sections of K.S.A. that are replaced by these amendments, ensuring that the new tax structures are clearly defined and implemented. Overall, the legislation aims to create a more responsive tax system that adjusts based on actual revenue performance while providing clarity on tax obligations for various entities.

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