The bill amends existing Kansas tax laws to establish conditions under which future tax rate decreases can occur. Specifically, it stipulates that any reductions in income and privilege tax rates will be contingent upon exceeding revenue estimates and maintaining a budget stabilization fund at a minimum of 15% of the previous fiscal year's state tax receipts. The bill introduces new definitions related to tax calculations, including "adjusted consumer price ratio," "adjusted general revenue fund collections," and "excess fiscal year general revenue fund collections." It also outlines the process for determining and certifying tax rate reductions based on these criteria.

Additionally, the bill amends K.S.A. 2024 Supp. 79-1107, 79-1108, and 79-32,110, which govern the tax rates for national banking associations, state banks, trust companies, and savings and loan associations. The normal tax rates for these entities are set at 1.94% and 1.93%, respectively, with surtax rates of 2.125% and 2.25% on income exceeding $25,000. The bill repeals the existing sections of these statutes, effectively replacing them with the new provisions. Overall, the legislation aims to create a more structured approach to tax rate adjustments based on fiscal performance and revenue stability.

Statutes affected:
As introduced: 74-2438a
As Amended by House Committee: 74-2438a
Enrolled: 79-1108, 79-1107, 79-32