Kansas 2023-2024 Regular Session

Kansas House Bill HB2061

Introduced
1/18/23  
Refer
1/18/23  

Caption

Providing an income tax rate of 5% for individuals and corporations, decreasing the surtax for entities subject to the privilege tax and providing that future income tax rate decreases be contingent on exceeding revenue estimates.

Impact

The passage of HB 2061 would enact significant changes to the state’s income tax landscape. By instituting a flat income tax rate, the bill seeks to simplify tax obligations for residents and businesses alike. Notably, the proposed surtax adjustments are designed to alleviate financial burdens on affected entities, thereby aiming to stimulate economic activity. However, the requirement for revenue benchmarks before any further tax rate reductions introduces a safeguard to maintain fiscal health, which may appease concerns regarding possible revenue loss.

Summary

House Bill 2061 introduces an income tax rate of 5% applicable to both individuals and corporations. This legislation aims to standardize income taxation while simultaneously proposing a decrease in the surtax that affects entities subject to the privilege tax. The bill presents a structured approach to future tax rate adjustments by making any potential decreases contingent upon exceeding predetermined revenue estimates. This strategic framework is intended to ensure that tax cuts do not compromise state funding needs.

Contention

Debate surrounding HB 2061 reflects a mixture of support and opposition. Proponents argue that the introduction of a flat income tax rate would enhance fairness and transparency in the tax system, potentially attracting new businesses and individuals to the state. Critics, however, highlight concerns regarding the reliance on revenue estimates to dictate future tax policy, fearing that it may lead to unstable financial planning for residents and businesses over time. Additionally, there are worries that such tax reforms might disproportionately disadvantage low-income individuals if not carefully structured.

Notable_points

In summary, while HB 2061 aims to create a more streamlined and equitable tax framework, it also opens the floor for critical discussions surrounding sustainable fiscal policies and the implications of tax dependency on fluctuating revenue estimates. The bill’s interactions with existing tax laws will require careful monitoring to ensure equitable outcomes across various demographic sectors.

Companion Bills

No companion bills found.

Previously Filed As

KS SB61

Providing an income tax rate of 5% for individuals and corporations, decreasing the surtax for entities subject to the privilege tax and providing that future income tax rate decreases be contingent on exceeding revenue estimates.

KS SB259

Providing that future personal and corporate income tax rate and privilege tax rate decreases be contingent on exceeding tax receipt revenues.

KS HB2318

Providing that future income and privilege tax rate decreases be contingent on exceeding tax receipt revenues.

KS SB269

Providing that future income tax and privilege tax rate decreases be contingent on exceeding revenue estimates and retaining a certain amount in the budget stabilization fund.

KS HB2457

Providing an income tax rate of 4.95% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income and providing that all social security income qualifies for the subtraction modification commencing in tax year 2026, increasing the Kansas standard deduction for individuals and further increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax surtax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2023, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS SB169

House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS SB300

House Substitute for SB 300 by Committee on Taxation - Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, providing for certain transfers to the special city and county highway fund and decreasing the rate of ad valorem tax imposed by a school district.

KS HB2175

Providing for future decreased income tax rates contingent on retention of a 7.5% state general fund ending balance.

KS HB2844

Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and decreasing the rate of ad valorem tax imposed by a school district.

KS HB2284

Providing an income tax rate of 5.25% for individuals, exempting all social security benefits from Kansas income tax, increasing the standard deduction by a cost-of-living adjustment, increasing the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on April 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

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