This bill amends K.S.A. 2025 Supp. 79-3279 to implement a single sales factor approach for apportioning business income for manufacturers of alcoholic liquor, effective for tax years starting on or after January 1, 2027. It allows taxpayers who previously chose a different apportionment method to transition to the new single sales factor. Additionally, the bill introduces a deferred tax impact deduction specifically for publicly traded companies, which will be calculated based on changes in net deferred tax liabilities or assets due to the new apportionment method.

The bill also includes several deletions from existing law, such as the removal of provisions related to the ten-year election period for certain apportionment methods and criteria for distressed area taxpayers. It clarifies that only publicly traded companies are eligible for the deferred tax impact deduction and outlines the calculation process for this deduction. Furthermore, the bill introduces a new definition for "Net deferred tax asset" and repeals a section concerning the taxation of manufacturers selling to distributors, which previously involved a more complex apportionment method. Overall, the bill aims to simplify tax calculations for manufacturers of alcoholic liquor and provide tax relief for qualifying companies.

Statutes affected:
As introduced: 79-3279