KS
Kansas House Bill HB2110

Kansas 2023-2024 Regular Session

Kansas House Bill HB2110

Introduced
1/19/23  
Refer
1/19/23  

Caption

Allowing single sales factor apportionment of business income for certain taxpayers.

Impact

The bill is expected to have a substantial impact on various state taxation statutes, particularly K.S.A. 79-3271 and K.S.A. 79-3279, as it replaces the existing provisions with a focus on sales factor apportionment. Supporters argue that adopting a single sales factor will lower the tax burden for businesses heavily invested in their workforce, particularly those in manufacturing and service industries, which could lead to increased job creation and economic growth in Kansas. Conversely, opponents have raised concerns about the potential revenue losses for the state, as some may fear that such tax incentives could dilute the overall tax base if not balanced with broader fiscal strategies.

Summary

House Bill 2110 introduces significant amendments to income taxation in Kansas, specifically regarding the apportionment of business income. The bill allows certain taxpayers the option to elect for a single sales factor apportionment method. This transition from the traditional three-factor apportionment (which considers property, payroll, and sales) to a single sales factor apportionment is aimed at making it easier for businesses to calculate their tax liabilities. By simplifying the apportionment process, the bill seeks to enhance the business climate in Kansas and attract more companies to the state.

Contention

Key points of contention surrounding HB 2110 center on its potential long-term implications for state revenue and equitable tax practice. Critics argue that while the goal of attracting businesses is commendable, a sole emphasis on sales factor apportionment could disadvantage industries that have significant property or payroll costs. The question remains whether this approach will foster sustainable economic growth or simply shift tax burdens. Some lawmakers are concerned about the size of businesses that will benefit from this new structure, as it may disproportionately favor larger corporations while overlooking smaller local businesses.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2796

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

KS SB507

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

KS HB2336

Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor, the decrease in corporate income tax rates determining when sales other than tangible personal property are made in the state and excluding sales of a unitary business group of electric and natural gas public utilities.

KS HB2798

Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor and the decrease in corporate income tax rates.

KS HB2231

Providing an additional personal exemption for head of household tax filers and increasing the personal exemption for certain disabled veterans for purposes of income tax, modifying the definition of household income related to increased property tax homestead refund claims, providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, providing for the apportionment pursuant to the three-factor test of a manufacturer who sells alcoholic liquor, requiring the use of single sales factor pursuant to the multistate tax compact, establishing deductions from income when using the single sales factor and receipts factor, providing for the decrease in corporate income tax rates, determining when sales other than tangible personal property are made in the state, excluding sales of a unitary business group of electric and natural gas public utilities, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers.

KS SB1702

Income tax; modifying the sales apportionment factor to determine certain corporate income to exclude certain out of state shipments. Effective date.

KS SB60

Income tax; modifying certain apportionment factors for determining Oklahoma taxable income for certain tax years. Effective date.

KS HB3849

Revenue and taxation; Oklahoma taxable income; apportionment factors; effective date.

KS SB124

Revise corporate income tax apportionment

KS A3102

Allows taxpayers to deduct cost of certain depreciable assets under corporation business and gross income taxes.

Similar Bills

KS HB2798

Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor and the decrease in corporate income tax rates.

KS HB2336

Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor, the decrease in corporate income tax rates determining when sales other than tangible personal property are made in the state and excluding sales of a unitary business group of electric and natural gas public utilities.

KS HB2231

Providing an additional personal exemption for head of household tax filers and increasing the personal exemption for certain disabled veterans for purposes of income tax, modifying the definition of household income related to increased property tax homestead refund claims, providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, providing for the apportionment pursuant to the three-factor test of a manufacturer who sells alcoholic liquor, requiring the use of single sales factor pursuant to the multistate tax compact, establishing deductions from income when using the single sales factor and receipts factor, providing for the decrease in corporate income tax rates, determining when sales other than tangible personal property are made in the state, excluding sales of a unitary business group of electric and natural gas public utilities, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers.

MO SB1212

Modifies provisions relating to the apportionment of income for financial institutions

KS SB507

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

KS HB2796

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

AZ HB2850

Corporate tax; business income; allocation

AZ SB1682

Corporate tax; business income; allocation