The bill amends existing tax laws 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 related to tax calculations, such as "adjusted consumer price ratio" 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 amends specific sections of the Kansas Statutes Annotated (K.S.A.) related to the normal tax and surtax for banks, trust companies, and savings and loan associations, establishing fixed rates for these taxes starting in tax year 2024. It also modifies the income tax brackets for resident and nonresident individuals, adjusting the rates and thresholds for taxable income. The existing sections of K.S.A. 79-1107, 79-1108, and 79-32,110 are repealed, and the new provisions will take effect upon publication in the statute book.

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