The bill introduces new provisions regarding income and privilege taxes in Kansas, establishing that any future tax rate decreases will be contingent upon exceeding revenue estimates and maintaining a minimum balance in the budget stabilization fund. Specifically, it mandates that starting August 15, 2025, the director of the budget will assess whether the adjusted general revenue fund collections exceed inflation-adjusted base year revenues and if the budget stabilization fund holds at least 15% of the previous fiscal year's state tax receipts. If both conditions are met, the secretary of revenue will calculate and publish the corresponding reductions in income and privilege tax rates.

Additionally, the bill amends existing statutes related to the normal and surtax rates for national banks, state banks, trust companies, and savings and loan associations, while also adjusting the income tax brackets for resident individuals. The normal tax rates for banks will be set at 1.94% and 1.93% for trust companies and savings and loan associations, respectively, with surtax rates of 2.125% and 2.25% on income exceeding $25,000. The bill repeals previous sections of the law that established older tax rates and brackets, thereby updating the tax structure to reflect these changes.

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