The bill amends the Kansas income tax law to establish a mechanism for future tax rate decreases that are contingent upon exceeding revenue estimates. It introduces definitions for terms such as "adjusted consumer price ratio," "adjusted general revenue fund collections," and "excess fiscal year general revenue fund collections." Starting August 15, 2025, the director of the budget will assess whether the previous fiscal year's adjusted general revenue collections exceed inflation-adjusted base year revenues. If they do, the secretary of revenue will calculate and publish the corresponding income tax rate reduction, which will be applied to the next tax year and remain in effect unless further adjustments are made.

Additionally, the bill modifies the income tax brackets and rates for resident individuals, nonresident individuals, and corporations, with specific changes to the tax rates for tax years 2024 and beyond. For instance, the tax rate for married individuals filing jointly with taxable income not exceeding $46,000 will be set at 5.2%, while the rate for income over that amount will be 5.58%. The bill also repeals the existing section of K.S.A. 2024 Supp. 79-32,110, effectively replacing it with the new provisions outlined in the bill.

Statutes affected:
As introduced: 79-32