HOUSE BILL No. 2284
AN ACT concerning taxation; relating to income tax; providing a 5.25% tax rate for
individuals; eliminating the income limitation to receive the subtraction modification
exempting social security benefits; increasing the Kansas standard deduction by a
cost-of-living adjustment; increasing the Kansas personal exemption; relating to
privilege tax; decreasing the normal tax rate; relating to property tax; increasing the
extent of exemption for residential property from the statewide school levy;
concerning sales and compensating use tax; relating to sales of food and food
ingredients; reducing the rate of tax imposed; modifying the percent credited to the
state highway fund from revenue collected; amending K.S.A. 79-1107 and 79-1108
and K.S.A. 2023 Supp. 79-201x, 79-32,110, 79-32,117, 79-32,119, 79-32,121, 79-
3603, 79-3603d, 79-3620, 79-3703 and 79-3710 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2023 Supp. 79-201x is hereby amended to read
as follows: 79-201x. (a) For taxable year 2022 2024, and all taxable
years thereafter, the following described property, to the extent herein
specified, shall be and is hereby exempt from the property tax levied
pursuant to the provisions of K.S.A. 72-5142, and amendments thereto:
Property used for residential purposes to the extent of $40,000
$100,000 of its appraised valuation.
(b) For taxable year 2023 2025, and all taxable years thereafter,
the dollar amount of the extent of appraised valuation that is exempt
pursuant to subsection (a) shall be adjusted to reflect the average
percentage change in statewide residential valuation of all residential
real property for the preceding 10 years. Such average percentage
change shall not be less than zero. The director of property valuation
shall calculate the average percentage change for purposes of this
annual adjustment and calculate the dollar amount of the extent of
appraised valuation that is exempt pursuant to this section each year.
Sec. 2. K.S.A. 79-1107 is hereby amended to read as follows: 79-
1107. (a) Every national banking association and state bank located or
doing business within the state shall pay to the state for the privilege of
doing business within the state a tax according to or measured by its net
income for the next preceding taxable year to be computed as provided
in this act. Such tax shall consist of a normal tax and a surtax and shall
be computed as follows:
(a)(1) (A) For tax year 2024, the normal tax shall be an amount
equal to 2
1
/4% 2.25% of such net income; and
(B) for tax year 2025, and all tax years thereafter, the normal tax
shall be an amount equal to 1.63% of such net income; and
(b)(2) the surtax shall be an amount equal to 2
1
/8% 2.125% of
such net income in excess of $25,000.
(b) The tax levied shall be in lieu of ad valorem taxes which might
otherwise be imposed by the state or political subdivisions thereof upon
shares of capital stock or the intangible assets of national banking
associations and state banks.
Sec. 3. K.S.A. 79-1108 is hereby amended to read as follows: 79-
1108. (a) Every trust company and savings and loan association located
or doing business within the state shall pay to the state for the privilege
of doing business within the state a tax according to or measured by its
net income for the next preceding taxable year to be computed as
provided in this act. Such tax shall consist of a normal tax and a surtax
and shall be computed as follows:
(a)(1) (A) For tax year 2024, the normal tax on every trust
company and savings and loan association shall be an amount equal to
2
1
/4% 2.25% of such net income; and
(B) for tax year 2025, and all tax years thereafter, the normal tax
on every trust company and savings and loan association shall be an
amount equal to 1.61% of such net income; and
(b)(2) the surtax on every trust company and savings and loan
association shall be an amount equal to 2
1
/4% 2.25% of such net
income in excess of $25,000.
(b) The tax levied shall be in lieu of ad valorem taxes which might
otherwise be imposed by the state or political subdivision thereof upon
shares of capital stock or other intangible assets of trust companies and
savings and loan associations.
Sec. 4. K.S.A. 2023 Supp. 79-32,110 is hereby amended to read as HOUSE BILL No. 2284—page 2
follows: 79-32,110. (a) Resident individuals. Except as otherwise
provided by K.S.A. 79-3220(a), and amendments thereto, a tax is
hereby imposed upon the Kansas taxable income of every resident
individual, which tax shall be computed in accordance with the
following tax schedules:
(1) Married individuals filing joint returns.
(A) For tax year 2012:
If the taxable income is: The tax is:
Not over $30,000 3.5% of Kansas taxable
income
Over $30,000 but not over $60,000 $1,050 plus 6.25% of
excess over $30,000
Over $60,000 $2,925 plus 6.45% of
excess over $60,000
(B) For tax year 2013:
If the taxable income is: The tax is:
Not over $30,000 3.0% of Kansas taxable
income
Over $30,000 $900 plus 4.9% of
excess over $30,000
(C) For tax year 2014:
If the taxable income is: The tax is:
Not over $30,000 2.7% of Kansas taxable
income
Over $30,000 $810 plus 4.8% of excess
over $30,000
(D) For tax years 2015 and 2016:
If the taxable income is: The tax is:
Not over $30,000 2.7% of Kansas taxable
income
Over $30,000 $810 plus 4.6% of
excess over $30,000
(E) For tax year 2017:
If the taxable income is: The tax is:
Not over $30,000 2.9% of Kansas taxable
income
Over $30,000 but not over $60,000 $870 plus 4.9% of
excess over $30,000
Over $60,000 $2,340 plus 5.2% of excess
over $60,000
(F) For tax year years 2018, and all tax years thereafter through
2024:
If the taxable income is: The tax is:
Not over $30,000 3.1% of Kansas taxable
income
Over $30,000 but not over $60,000$930 plus 5.25% of excess
over $30,000
Over $60,000 $2,505 plus 5.7% of excess
over $60,000
(2) All other individuals.
(A) For tax year 2012:
If the taxable income is: The tax is:
Not over $15,000 3.5% of Kansas taxable
income
Over $15,000 but not over $30,000 $525 plus 6.25% of excess
over $15,000
Over $30,000 $1,462.50 plus 6.45% of
excess over $30,000
(B) For tax year 2013: HOUSE BILL No. 2284—page 3
If the taxable income is: The tax is:
Not over $15,000 3.0% of Kansas taxable
income
Over $15,000 $450 plus 4.9% of excess
over $15,000
(C) For tax year 2014:
If the taxable income is: The tax is:
Not over $15,000 2.7% of Kansas taxable
income
Over $15,000 $405 plus 4.8% of excess
over $15,000
(D) For tax years 2015 and 2016:
If the taxable income is: The tax is:
Not over $15,000 2.7% of Kansas taxable
income
Over $15,000 $405 plus 4.6% of excess
over $15,000
(E) For tax year 2017:
If the taxable income is: The tax is:
Not over $15,000 2.9% of Kansas taxable
income
Over $15,000 but not over $30,000 $435 plus 4.9% of excess
over $15,000
Over $30,000 $1,170 plus 5.2% of excess
over $30,000
(F) For tax year years 2018, and all tax years thereafter through
2024:
If the taxable income is: The tax is:
Not over $15,000 3.1% of Kansas taxable
income
Over $15,000 but not over $30,000$465 plus 5.25% of excess
over $15,000
Over $30,000 $1,252.50 plus 5.7% of
excess over $30,000
(3) All resident individuals. For tax year 2025, and all tax years
thereafter, for all individuals regardless of filing status, the tax shall be
in an amount equal to 5.25% of the Kansas taxable income that is in
excess of:
(A) $12,300 for married individuals filing joint returns; and
(B) $6,150 for all other individuals.
(b) Nonresident individuals. A tax is hereby imposed upon the
Kansas taxable income of every nonresident individual, which tax shall
be an amount equal to the tax computed under subsection (a) as if the
nonresident were a resident multiplied by the ratio of modified Kansas
source income to Kansas adjusted gross income.
(c) Corporations. A tax is hereby imposed upon the Kansas
taxable income of every corporation doing business within this state or
deriving income from sources within this state. Such tax shall consist of
a normal tax and a surtax and shall be computed as follows unless
otherwise modified pursuant to K.S.A. 2023 Supp. 74-50,321, and
amendments thereto:
(1) The normal tax shall be in an amount equal to 4% of the
Kansas taxable income of such corporation; and
(2) the surtax shall be in an amount equal to 3% of the Kansas
taxable income of such corporation in excess of $50,000.
(d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable
income of estates and trusts at the rates provided in subsection (a)(2)
hereof for tax years 2018 through 2024 and at the rate provided in
subsection (a)(3) for tax year 2025, and all tax years thereafter. HOUSE BILL No. 2284—page 4
(e) Notwithstanding the provisions of subsections (a) and (b): (1)
For tax years 2016 and 2017, married individuals filing joint returns
with taxable income of $12,500 or less, and all other individuals with
taxable income of $5,000 or less, shall have a tax liability of zero; and
(2), for tax year years 2018, and all tax years thereafter through 2024,
married individuals filing joint returns with taxable income of $5,000
or less, and all other individuals with taxable income of $2,500 or less,
shall have a tax liability of zero.
(f) No taxpayer shall be assessed penalties and interest arising
from the underpayment of taxes due to changes to the rates in
subsection (a) that became law on July 1, 2017, so long as such
underpayment is rectified on or before April 17, 2018.
Sec. 5. K.S.A. 2023 Supp. 79-32,117 is hereby amended to read as
follows: 79-32,117. (a) The Kansas adjusted gross income of an
individual means such individual's federal adjusted gross income for
the taxable year, with the modifications specified in this section.
(b) There shall be added to federal adjusted gross income:
(i) Interest income less any related expenses directly incurred in
the purchase of state or political subdivision obligations, to the extent
that the same is not included in federal adjusted gross income, on
obligations of any state or political subdivision thereof, but to the
extent that interest income on obligations of this state or a political
subdivision thereof issued prior to January 1, 1988, is specifically
exempt from income tax under the laws of this state authorizing the
issuance of such obligations, it shall be excluded from computation of
Kansas adjusted gross income whether or not included in federal
adjusted gross income. Interest income on obligations of this state or a
political subdivision thereof issued after December 31, 1987, shall be
excluded from computation of Kansas adjusted gross income whether
or not included in federal adjusted gross income.
(ii) Taxes on or measured by income or fees or payments in lieu of
income taxes imposed by this state or any other taxing jurisdiction to
the extent deductible in determining federal adjusted gross income and
not credited against federal income tax. This paragraph shall not apply
to taxes imposed under the provisions of K.S.A. 79-1107 or 79-1108,
and amendments thereto, for privilege tax year 1995, and all such years
thereafter.
(iii) The federal net operating loss deduction, except that the
federal net operating loss deduction shall not be added to an
individual's federal adjusted gross income for tax years beginning after
December 31, 2016.
(iv) Federal income tax refunds received by the taxpayer if the
deduction of the taxes being refunded resulted in a tax benefit for
Kansas income tax purposes during a prior taxable year. Such refunds
shall be included in income in the year actually received regardless of
the method of accounting used by the taxpayer. For purposes hereof, a
tax benefit shall be deemed to have resulted if the amount of the tax
had been deducted in determining income subject to a Kansas income
tax for a prior year regardless of the rate of taxation applied in such
prior year to the Kansas taxable income, but only that portion of the
refund shall be included as bears the same proportion to the total refund
received as the federal taxes deducted in the year to which such refund
is attributable bears to the total federal income taxes paid for such year.
For purposes of the foregoing sentence, federal taxes shall be
considered to have been deducted only to the extent such deduction
does not reduce Kansas taxable income below zero.
(v) The amount of any depreciation deduction or business expense
deduction claimed on the taxpayer's federal income tax return for any
capital expenditure in making any building or facility accessible to the HOUSE BILL No. 2284—page 5
handicapped, for which expenditure the taxpayer claimed the credit
allowed by K.S.A. 79-32,177, and amendments thereto.
(vi) Any amount of designated employee contributions picked up
by an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-
4965, and amendments thereto.
(vii) The amount of any charitable contribution made to the extent
the same is claimed as the basis for the credit allowed pursuant to
K.S.A. 79-32,196, and amendments thereto.
(viii) The amount of any costs incurred for improvements to a
swine facility, claimed for deduction in determining federal adjusted
gross income, to the extent the same is claimed as the basis for any
credit allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
(ix) The amount of any ad valorem taxes and assessments paid and
the amount of any costs incurred for habitat management or
construction and maintenance of improvements on real property,
claimed for deduction in determining federal adjusted gross income, to
the extent the same is claimed as the basis for any credit allowed
pursuant to K.S.A. 79-32,203, and amendments thereto.
(x) Amounts received as nonqualified withdrawals, as defined by
K.S.A. 75-643, and amendments thereto, if, at the time of contribution
to a family postsecondary education savings account, such amounts
were subtracted from the federal adjusted gross income pursuant to
subsection (c)(xv) or if such amounts are not already included in the
federal adjusted gross income.
(xi) The amount of any contribution made to the same extent the
same is claimed as the basis for the credit allowed pursuant to K.S.A.
74-50,154, and amendments thereto.
(xii) For taxable years commencing after December 31, 2004,
amounts received as withdrawals not in accordance with the provisions
of K.S.A. 74-50,204, and amendments thereto, if, at the time of
contribution to an individual development account, such amounts were
subtracted from the federal adjusted gross income pursuant to
subsection (c)(xiii), or if such amounts are not already included in the
federal adjusted gross income.
(xiii) The amount of any expenditures claimed for deduction in
determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to K.S.A. 79-
32,217 through 79-32,220 or 79-32,222, and amendments thereto.
(xiv) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
thereto.
(xv) The amount of any expenditures claimed for deduction in
determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to K.S.A. 79-
32,223 through 79-32,226, 79-32,228 through 79-32,231, 79-32,233
through 79-32,236, 79-32,238 through 79-32,241, 79-32,245 through
79-32,248 or 79-32,251 through 79-32,254, and amendments thereto.
(xvi) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
(xvii) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
thereto.
(xviii) For taxable years commencing after December 31, 2006,
the amount of any ad valorem or property taxes and assessments paid to
a state other than Kansas or local government located in a state other HOUSE BILL No. 2284—page 6
than Kansas by a taxpayer who resides in a state other than Kansas,
when the law of such state does not allow a resident of Kansas who
earns income in such other state to claim a deduction for ad valorem or
property taxes or assessments paid to a political subdivision of the state
of Kansas in determining taxable income for income tax purposes in
such other state, to the extent that such taxes and assessments are
claimed as an itemized deduction for federal income tax purposes.
(xix) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any: (1) Loss from
business as determined under the federal internal revenue code and
reported from schedule C and on line 12 of the taxpayer's form 1040
federal individual income tax return; (2) loss from rental real estate,
royalties, partnerships, S corporations, except those with wholly owned
subsidiaries subject to the Kansas privilege tax, estates, trusts, residual
interest in real estate mortgage investment conduits and net farm rental
as determined under the federal internal revenue code and reported
from schedule E and on line 17 of the taxpayer's form 1040 federal
individual income tax return; and (3) farm loss as determined under the
federal internal revenue code and reported from schedule F and on line
18 of the taxpayer's form 1040 federal income tax return; all to the
extent deducted or subtracted in determining the taxpayer's federal
adjusted gross income. For purposes of this subsection, references to
the federal form 1040 and federal schedule C, schedule E, and schedule
F, shall be to such form and schedules as they existed for tax year 2011,
and as revised thereafter by the internal revenue service.
(xx) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for self-
employment taxes under section 164(f) of the federal internal revenue
code as in effect on January 1, 2012, and amendments thereto, in
determining the federal adjusted gross income of an individual
taxpayer, to the extent the deduction is attributable to income reported
on schedule C, E or F and on line 12, 17 or 18 of the taxpayer's form
1040 federal income tax return.
(xxi) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for
pension, profit sharing, and annuity plans of self-employed individuals
under section 62(a)(6) of the federal internal revenue code as in effect
on January 1, 2012, and amendments thereto, in determining the federal
adjusted gross income of an individual taxpayer.
(xxii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for health
insurance under section 162(l) of the federal internal revenue code as in
effect on January 1, 2012, and amendments thereto, in determining the
federal adjusted gross income of an individual taxpayer.
(xxiii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for
domestic production activities under section 199 of the federal internal
revenue code as in effect on January 1, 2012, and amendments thereto,
in determining the federal adjusted gross income of an individual
taxpayer.
(xxiv) For taxable years commencing after December 31, 2013,
that portion of the amount of any expenditure deduction claimed in
determining federal adjusted gross income for expenses paid for
medical care of the taxpayer or the taxpayer's spouse or dependents
when such expenses were paid or incurred for an abortion, or for a
health benefit plan, as defined in K.S.A. 65-6731, and amendments
thereto, for the purchase of an optional rider for coverage of abortion in
accordance with K.S.A. 40-2,190, and amendments thereto, to the
extent that such taxes and assessments are claimed as an itemized HOUSE BILL No. 2284—page 7
deduction for federal income tax purposes.
(xxv) For taxable years commencing after December 31, 2013,
that portion of the amount of any expenditure deduction claimed in
determining federal adjusted gross income for expenses paid by a
taxpayer for health care when such expenses were paid or incurred for
abortion coverage, a health benefit plan, as defined in K.S.A. 65-6731,
and amendments thereto, when such expenses were paid or incurred for
abortion coverage or amounts contributed to health savings accounts
for such taxpayer's employees for the purchase of an optional rider for
coverage of abortion in accordance with K.S.A. 40-2,190, and
amendments thereto, to the extent that such taxes and assessments are
claimed as a deduction for federal income tax purposes.
(xxvi) For all taxable years beginning after December 31, 2016,
the amount of any charitable contribution made to the extent the same
is claimed as the basis for the credit allowed pursuant to K.S.A. 72-
4357, and amendments thereto, and is also claimed as an itemized
deduction for federal income tax purposes.
(xxvii) For all taxable years commencing after December 31,
2020, the amount deducted by reason of a carryforward of disallowed
business interest pursuant to section 163(j) of the federal internal
revenue code of 1986, as in effect on January 1, 2018.
(xxviii) For all taxable years beginning after December 31, 2021,
the amount of any contributions to, or earnings from, a first-time home
buyer savings account if distributions from the account were not used
to pay for expenses or transactions authorized pursuant to K.S.A. 2023
Supp. 58-4904, and amendments thereto, or were not held for the
minimum length of time required pursuant to K.S.A. 2023 Supp. 58-
4904, and amendments thereto. Contributions to, or earnings from,
such account shall also include any amount resulting from the account
holder not designating a surviving payable on death beneficiary
pursuant to K.S.A. 2023 Supp. 58-4904(e), and amendments thereto.
(c) There shall be subtracted from federal adjusted gross income:
(i) Interest or dividend income on obligations or securities of any
authority, commission or instrumentality of the United States and its
possessions less any related expenses directly incurred in the purchase
of such obligations or securities, to the extent included in federal
adjusted gross income but exempt from state income taxes under the
laws of the United States.
(ii) Any amounts received which are included in federal adjusted
gross income but which are specifically exempt from Kansas income
taxation under the laws of the state of Kansas.
(iii) The portion of any gain or loss from the sale or other
disposition of property having a higher adjusted basis for Kansas
income tax purposes than for federal income tax purposes on the date
such property was sold or disposed of in a transaction in which gain or
loss was recognized for purposes of federal income tax that does not
exceed such difference in basis, but if a gain is considered a long-term
capital gain for federal income tax purposes, the modification shall be
limited to that portion of such gain which is included in federal
adjusted gross income.
(iv) The amount necessary to prevent the taxation under this act of
any annuity or other amount of income or gain which was properly
included in income or gain and was taxed under the laws of this state
for a taxable year prior to the effective date of this act, as amended, to
the taxpayer, or to a decedent by reason of whose death the taxpayer
acquired the right to receive the income or gain, or to a trust or estate
from which the taxpayer received the income or gain.
(v) The amount of any refund or credit for overpayment of taxes
on or measured by income or fees or payments in lieu of income taxes HOUSE BILL No. 2284—page 8
imposed by this state, or any taxing jurisdiction, to the extent included
in gross income for federal income tax purposes.
(vi) Accumulation distributions received by a taxpayer as a
beneficiary of a trust to the extent that the same are included in federal
adjusted gross income.
(vii) Amounts received as annuities under the federal civil service
retirement system from the civil service retirement and disability fund
and other amounts received as retirement benefits in whatever form
which were earned for being employed by the federal government or
for service in the armed forces of the United States.
(viii) Amounts received by retired railroad employees as a
supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
228c(a)(1) et seq.
(ix) Amounts received by retired employees of a city and by
retired employees of any board of such city as retirement allowances
pursuant to K.S.A. 13-14,106, and amendments thereto, or pursuant to
any charter ordinance exempting a city from the provisions of K.S.A.
13-14,106, and amendments thereto.
(x) For taxable years beginning after December 31, 1976, the
amount of the federal tentative jobs tax credit disallowance under the
provisions of 26 U.S.C. § 280C. For taxable years ending after
December 31, 1978, the amount of the targeted jobs tax credit and work
incentive credit disallowances under 26 U.S.C. § 280C.
(xi) For taxable years beginning after December 31, 1986,
dividend income on stock issued by Kansas venture capital, inc.
(xii) For taxable years beginning after December 31, 1989,
amounts received by retired employees of a board of public utilities as
pension and retirement benefits pursuant to K.S.A. 13-1246, 13-1246a
and 13-1249, and amendments thereto.
(xiii) For taxable years beginning after December 31, 2004,
amounts contributed to and the amount of income earned on
contributions deposited to an individual development account under
K.S.A. 74-50,201 et seq., and amendments thereto.
(xiv) For all taxable years commencing after December 31, 1996,
that portion of any income of a bank organized under the laws of this
state or any other state, a national banking association organized under
the laws of the United States, an association organized under the
savings and loan code of this state or any other state, or a federal
savings association organized under the laws of the United States, for
which an election as an S corporation under subchapter S of the federal
internal revenue code is in effect, which accrues to the taxpayer who is
a stockholder of such corporation and which is not distributed to the
stockholders as dividends of the corporation. For taxable years
beginning after December 31, 2012, and ending before January 1, 2017,
the amount of modification under this subsection shall exclude the
portion of income or loss reported on schedule E and included on line
17 of the taxpayer's form 1040 federal individual income tax return.
(xv) For all taxable years beginning after December 31, 2017, the
cumulative amounts not exceeding $3,000, or $6,000 for a married
couple filing a joint return, for each designated beneficiary that are
contributed to: (1) A family postsecondary education savings account
established under the Kansas postsecondary education savings program
or a qualified tuition program established and maintained by another
state or agency or instrumentality thereof pursuant to section 529 of the
internal revenue code of 1986, as amended, for the purpose of paying
the qualified higher education expenses of a designated beneficiary; or
(2) an achieving a better life experience (ABLE) account established
under the Kansas ABLE savings program or a qualified ABLE program
established and maintained by another state or agency or HOUSE BILL No. 2284—page 9
instrumentality thereof pursuant to section 529A of the internal revenue
code of 1986, as amended, for the purpose of saving private funds to
support an individual with a disability. The terms and phrases used in
this paragraph shall have the meaning respectively ascribed thereto by
the provisions of K.S.A. 75-643 and 75-652, and amendments thereto,
and the provisions of such sections are hereby incorporated by
reference for all purposes thereof.
(xvi) For all taxable years beginning after December 31, 2004,
amounts received by taxpayers who are or were members of the armed
forces of the United States, including service in the Kansas army and
air national guard, as a recruitment, sign up or retention bonus received
by such taxpayer as an incentive to join, enlist or remain in the armed
services of the United States, including service in the Kansas army and
air national guard, and amounts received for repayment of educational
or student loans incurred by or obligated to such taxpayer and received
by such taxpayer as a result of such taxpayer's service in the armed
forces of the United States, including service in the Kansas army and
air national guard.
(xvii) For all taxable years beginning after December 31, 2004,
amounts received by taxpayers who are eligible members of the Kansas
army and air national guard as a reimbursement pursuant to K.S.A. 48-
281, and amendments thereto, and amounts received for death benefits
pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
such death benefits are included in federal adjusted gross income of the
taxpayer.
(xviii) For the taxable year beginning after December 31, 2006,
amounts received as benefits under the federal social security act which
are included in federal adjusted gross income of a taxpayer with federal
adjusted gross income of $50,000 or less, whether such taxpayer's filing
status is single, head of household, married filing separate or married
filing jointly; and (1) For all taxable years beginning after December
31, 2007, and ending before January 1, 2024, amounts received as
benefits under the federal social security act which are included in
federal adjusted gross income of a taxpayer with federal adjusted gross
income of $75,000 or less, whether such taxpayer's filing status is
single, head of household, married filing separate or married filing
jointly; and
(2) for all taxable years beginning after December 31, 2023,
amounts received as benefits under the federal social security act that
are included in federal adjusted gross income of a taxpayer.
(xix) Amounts received by retired employees of Washburn
university as retirement and pension benefits under the university's
retirement plan.
(xx) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any: (1) Net profit from
business as determined under the federal internal revenue code and
reported from schedule C and on line 12 of the taxpayer's form 1040
federal individual income tax return; (2) net income, not including
guaranteed payments as defined in section 707(c) of the federal internal
revenue code and as reported to the taxpayer from federal schedule K-
1, (form 1065-B), in box 9, code F or as reported to the taxpayer from
federal schedule K-1, (form 1065) in box 4, from rental real estate,
royalties, partnerships, S corporations, estates, trusts, residual interest
in real estate mortgage investment conduits and net farm rental as
determined under the federal internal revenue code and reported from
schedule E and on line 17 of the taxpayer's form 1040 federal
individual income tax return; and (3) net farm profit as determined
under the federal internal revenue code and reported from schedule F
and on line 18 of the taxpayer's form 1040 federal income tax return; HOUSE BILL No. 2284—page 10
all to the extent included in the taxpayer's federal adjusted gross
income. For purposes of this subsection, references to the federal form
1040 and federal schedule C, schedule E, and schedule F, shall be to
such form and schedules as they existed for tax year 2011 and as
revised thereafter by the internal revenue service.
(xxi) For all taxable years beginning after December 31, 2013,
amounts equal to the unreimbursed travel, lodging and medical
expenditures directly incurred by a taxpayer while living, or a
dependent of the taxpayer while living, for the donation of one or more
human organs of the taxpayer, or a dependent of the taxpayer, to
another person for human organ transplantation. The expenses may be
claimed as a subtraction modification provided for in this section to the
extent the expenses are not already subtracted from the taxpayer's
federal adjusted gross income. In no circumstances shall the subtraction
modification provided for in this section for any individual, or a
dependent, exceed $5,000. As used in this section, "human organ"
means all or part of a liver, pancreas, kidney, intestine, lung or bone
marrow. The provisions of this paragraph shall take effect on the day
the secretary of revenue certifies to the director of the budget that the
cost for the department of revenue of modifications to the automated
tax system for the purpose of implementing this paragraph will not
exceed $20,000.
(xxii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of net gain from the sale of:
(1) Cattle and horses, regardless of age, held by the taxpayer for draft,
breeding, dairy or sporting purposes, and held by such taxpayer for 24
months or more from the date of acquisition; and (2) other livestock,
regardless of age, held by the taxpayer for draft, breeding, dairy or
sporting purposes, and held by such taxpayer for 12 months or more
from the date of acquisition. The subtraction from federal adjusted
gross income shall be limited to the amount of the additions recognized
under the provisions of subsection (b)(xix) attributable to the business
in which the livestock sold had been used. As used in this paragraph,
the term "livestock" shall not include poultry.
(xxiii) For all taxable years beginning after December 31, 2012,
amounts received under either the Overland Park, Kansas police
department retirement plan or the Overland Park, Kansas fire
department retirement plan, both as established by the city of Overland
Park, pursuant to the city's home rule authority.
(xxiv) For taxable years beginning after December 31, 2013, and
ending before January 1, 2017, the net gain from the sale from
Christmas trees grown in Kansas and held by the taxpayer for six years
or more.
(xxv) For all taxable years commencing after December 31, 2020,
100% of global intangible low-taxed income under section 951A of the
federal internal revenue code of 1986, before any deductions allowed
under section 250(a)(1)(B) of such code.
(xxvi) For all taxable years commencing after December 31, 2020,
the amount disallowed as a deduction pursuant to section 163(j) of the
federal internal revenue code of 1986, as in effect on January 1, 2018.
(xxvii) For taxable years commencing after December 31, 2020,
the amount disallowed as a deduction pursuant to section 274 of the
federal internal revenue code of 1986 for meal expenditures shall be
allowed to the extent such expense was deductible for determining
federal income tax and was allowed and in effect on December 31,
2017.
(xxviii) For all taxable years beginning after December 31, 2021:
(1) The amount contributed to a first-time home buyer savings account
pursuant to K.S.A. 2023 Supp. 58-4903, and amendments thereto, in an HOUSE BILL No. 2284—page 11
amount not to exceed $3,000 for an individual or $6,000 for a married
couple filing a joint return; or (2) amounts received as income earned
from assets in a first-time home buyer savings account.
(d) There shall be added to or subtracted from federal adjusted
gross income the taxpayer's share, as beneficiary of an estate or trust, of
the Kansas fiduciary adjustment determined under K.S.A. 79-32,135,
and amendments thereto.
(e) The amount of modifications required to be made under this
section by a partner which relates to items of income, gain, loss,
deduction or credit of a partnership shall be determined under K.S.A.
79-32,131, and amendments thereto, to the extent that such items affect
federal adjusted gross income of the partner.
Sec. 6. K.S.A. 2023 Supp. 79-32,119 is hereby amended to read as
follows: 79-32,119. (a) The Kansas standard deduction of an individual,
including a husband and wife who are either both residents or who file
a joint return as if both were residents, shall be equal to the sum of the
standard deduction amount allowed pursuant to this section, and the
additional standard deduction amount allowed pursuant to this section
for each such deduction allowable to such individual or to such
husband and wife under the federal internal revenue code.
(b) For tax year 1998, and all tax years thereafter, the additional
standard deduction amount shall be as follows: Single individual and
head of household filing status, $850; and married filing status, $700.
(c) (1) For tax year 2013 through tax year 2020, the standard
deduction amount of an individual, including husband and wife who
are either both residents or who file a joint return as if both were
residents, shall be as follows: Single individual filing status, $3,000;
married filing status, $7,500; and head of household filing status,
$5,500.
(2) For tax year 2021, and all tax years thereafter, the standard
deduction amount of an individual, including husband and wife who
are either both residents or who file a joint return as if both were
residents, shall be as follows: Single individual filing status, $3,500;
married filing status, $8,000; and head of household filing status,
$6,000.
(3) In the case of tax year 2024, and all tax years thereafter, the
amounts prescribed in paragraph (2) shall be increased by an amount
equal to such amount multiplied by the cost-of-living adjustment
determined under section 1(f)(3) of the federal internal revenue code
for the calendar year in which the taxable year commences.
(d) For purposes of this section, the federal standard deduction
allowable to a husband and wife filing separate Kansas income tax
returns shall be determined on the basis that separate federal returns
were filed, and the federal standard deduction of a husband and wife
filing a joint Kansas income tax return shall be determined on the basis
that a joint federal income tax return was filed.
Sec. 7. K.S.A. 2023 Supp. 79-32,121 is hereby amended to read as
follows: 79-32,121. (a) For tax year 2024, and all tax years thereafter,
an individual shall be allowed a Kansas exemption of $2,250 $2,300
for each exemption for which such individual is entitled to a deduction
for the taxable year for federal income tax purposes.
(b) In addition to the exemptions provided in subsection (a), any
individual who has been honorably discharged from active service in
any branch of the armed forces of the United States and who is certified
by the United States department of veterans affairs or its successor to
be in receipt of disability compensation at the 100% rate, if the
disability is permanent and was sustained through military action or
accident or resulted from disease contracted while in such active
service, such individual shall be allowed an additional Kansas HOUSE BILL No. 2284—page 12
exemption of $2,250 in the amount prescribed in subsection (a)
including any increases provided for pursuant to subsection (c) for tax
year 2023 2024 and all tax years thereafter.
(c) In the case of tax year 2025, and all tax years thereafter, the
amount prescribed in subsection (a) shall be increased by an amount
equal to such amount multiplied by the cost-of-living adjustment
determined under section 1(f)(3) of the federal internal revenue code
for the calendar year in which the taxable year commences.
Sec. 8. K.S.A. 2023 Supp. 79-3603 is hereby amended to read as
follows: 79-3603. For the privilege of engaging in the business of
selling tangible personal property at retail in this state or rendering or
furnishing any of the services taxable under this act, there is hereby
levied and there shall be collected and paid a tax at the rate of 6.5%. On
and after January 1, 2023, 17% and on and after January 1, 2025 April
1, 2024, 18% of the tax rate imposed pursuant to this section and the
rate provided in K.S.A. 2023 Supp. 79-3603d, and amendments thereto,
shall be levied for the state highway fund, the state highway fund
purposes and those purposes specified in K.S.A. 68-416, and
amendments thereto, and all revenue collected and received from such
tax levy shall be deposited in the state highway fund.
Within a redevelopment district established pursuant to K.S.A. 74-
8921, and amendments thereto, there is hereby levied and there shall be
collected and paid an additional tax at the rate of 2% until the earlier of
the date the bonds issued to finance or refinance the redevelopment
project have been paid in full or the final scheduled maturity of the first
series of bonds issued to finance any part of the project.
Such tax shall be imposed upon:
(a) The gross receipts received from the sale of tangible personal
property at retail within this state;
(b) the gross receipts from intrastate, interstate or international
telecommunications services and any ancillary services sourced to this
state in accordance with K.S.A. 79-3673, and amendments thereto,
except that telecommunications service does not include: (1) Any
interstate or international 800 or 900 service; (2) any interstate or
international private communications service as defined in K.S.A. 79-
3673, and amendments thereto; (3) any value-added nonvoice data
service; (4) any telecommunication service to a provider of
telecommunication services which will be used to render
telecommunications services, including carrier access services; or (5)
any service or transaction defined in this section among entities
classified as members of an affiliated group as provided by section
1504 of the federal internal revenue code of 1986, as in effect on
January 1, 2001;
(c) the gross receipts from the sale or furnishing of gas, water,
electricity and heat, which sale is not otherwise exempt from taxation
under the provisions of this act, and whether furnished by municipally
or privately owned utilities, except that, on and after January 1, 2006,
for sales of gas, electricity and heat delivered through mains, lines or
pipes to residential premises for noncommercial use by the occupant of
such premises, and for agricultural use and also, for such use, all sales
of propane gas, the state rate shall be 0%; and for all sales of propane
gas, LP gas, coal, wood and other fuel sources for the production of
heat or lighting for noncommercial use of an occupant of residential
premises, the state rate shall be 0%, but such tax shall not be levied and
collected upon the gross receipts from: (1) The sale of a rural water
district benefit unit; (2) a water system impact fee, system enhancement
fee or similar fee collected by a water supplier as a condition for
establishing service; or (3) connection or reconnection fees collected by
a water supplier; HOUSE BILL No. 2284—page 13
(d) the gross receipts from the sale of meals or drinks furnished at
any private club, drinking establishment, catered event, restaurant,
eating house, dining car, hotel, drugstore or other place where meals or
drinks are regularly sold to the public;
(e) the gross receipts from the sale of admissions to any place
providing amusement, entertainment or recreation services including
admissions to state, county, district and local fairs, but such tax shall
not be levied and collected upon the gross receipts received from sales
of admissions to any cultural and historical event which occurs
triennially;
(f) the gross receipts from the operation of any coin-operated
device dispensing or providing tangible personal property, amusement
or other services except laundry services, whether automatic or
manually operated;
(g) the gross receipts from the service of renting of rooms by
hotels, as defined by K.S.A. 36-501, and amendments thereto, or by
accommodation brokers, as defined by K.S.A. 12-1692, and
amendments thereto, but such tax shall not be levied and collected upon
the gross receipts received from sales of such service to the federal
government and any agency, officer or employee thereof in association
with the performance of official government duties;
(h) the gross receipts from the service of renting or leasing of
tangible personal property except such tax shall not apply to the renting
or leasing of machinery, equipment or other personal property owned
by a city and purchased from the proceeds of industrial revenue bonds
issued prior to July 1, 1973, in accordance with the provisions of
K.S.A. 12-1740 through 12-1749, and amendments thereto, and any
city or lessee renting or leasing such machinery, equipment or other
personal property purchased with the proceeds of such bonds who shall
have paid a tax under the provisions of this section upon sales made
prior to July 1, 1973, shall be entitled to a refund from the sales tax
refund fund of all taxes paid thereon;
(i) the gross receipts from the rendering of dry cleaning, pressing,
dyeing and laundry services except laundry services rendered through a
coin-operated device whether automatic or manually operated;
(j) the gross receipts from the rendering of the services of washing
and washing and waxing of vehicles;
(k) the gross receipts from cable, community antennae and other
subscriber radio and television services;
(l) (1) except as otherwise provided by paragraph (2), the gross
receipts received from the sales of tangible personal property to all
contractors, subcontractors or repairmen for use by them in erecting
structures, or building on, or otherwise improving, altering, or repairing
real or personal property.
(2) Any such contractor, subcontractor or repairman who
maintains an inventory of such property both for sale at retail and for
use by them for the purposes described by paragraph (1) shall be
deemed a retailer with respect to purchases for and sales from such
inventory, except that the gross receipts received from any such sale,
other than a sale at retail, shall be equal to the total purchase price paid
for such property and the tax imposed thereon shall be paid by the
deemed retailer;
(m) the gross receipts received from fees and charges by public
and private clubs, drinking establishments, organizations and
businesses for participation in sports, games and other recreational
activities, but such tax shall not be levied and collected upon the gross
receipts received from: (1) Fees and charges by any political
subdivision, by any organization exempt from property taxation
pursuant to K.S.A. 79-201 Ninth, and amendments thereto, or by any HOUSE BILL No. 2284—page 14
youth recreation organization exclusively providing services to persons
18 years of age or younger which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue
code of 1986, for participation in sports, games and other recreational
activities; and (2) entry fees and charges for participation in a special
event or tournament sanctioned by a national sporting association to
which spectators are charged an admission which is taxable pursuant to
subsection (e);
(n) the gross receipts received from dues charged by public and
private clubs, drinking establishments, organizations and businesses,
payment of which entitles a member to the use of facilities for
recreation or entertainment, but such tax shall not be levied and
collected upon the gross receipts received from: (1) Dues charged by
any organization exempt from property taxation pursuant to K.S.A. 79-
201 Eighth and Ninth, and amendments thereto; and (2) sales of
memberships in a nonprofit organization which is exempt from federal
income taxation pursuant to section 501(c)(3) of the federal internal
revenue code of 1986, and whose purpose is to support the operation of
a nonprofit zoo;
(o) the gross receipts received from the isolated or occasional sale
of motor vehicles or trailers but not including: (1) The transfer of motor
vehicles or trailers by a person to a corporation or limited liability
company solely in exchange for stock securities or membership interest
in such corporation or limited liability company; (2) the transfer of
motor vehicles or trailers by one corporation or limited liability
company to another when all of the assets of such corporation or
limited liability company are transferred to such other corporation or
limited liability company; or (3) the sale of motor vehicles or trailers
which are subject to taxation pursuant to the provisions of K.S.A. 79-
5101 et seq., and amendments thereto, by an immediate family member
to another immediate family member. For the purposes of paragraph
(3), immediate family member means lineal ascendants or descendants,
and their spouses. Any amount of sales tax paid pursuant to the Kansas
retailers sales tax act on the isolated or occasional sale of motor
vehicles or trailers on and after July 1, 2004, which the base for
computing the tax was the value pursuant to K.S.A. 79-5105(a), (b)(1)
and (b)(2), and amendments thereto, when such amount was higher
than the amount of sales tax which would have been paid under the law
as it existed on June 30, 2004, shall be refunded to the taxpayer
pursuant to the procedure prescribed by this section. Such refund shall
be in an amount equal to the difference between the amount of sales tax
paid by the taxpayer and the amount of sales tax which would have
been paid by the taxpayer under the law as it existed on June 30, 2004.
Each claim for a sales tax refund shall be verified and submitted not
later than six months from the effective date of this act to the director
of taxation upon forms furnished by the director and shall be
accompanied by any additional documentation required by the director.
The director shall review each claim and shall refund that amount of
tax paid as provided by this act. All such refunds shall be paid from the
sales tax refund fund, upon warrants of the director of accounts and
reports pursuant to vouchers approved by the director of taxation or the
director's designee. No refund for an amount less than $10 shall be paid
pursuant to this act. In determining the base for computing the tax on
such isolated or occasional sale, the fair market value of any motor
vehicle or trailer traded in by the purchaser to the seller may be
deducted from the selling price;
(p) the gross receipts received for the service of installing or
applying tangible personal property which when installed or applied is
not being held for sale in the regular course of business, and whether or HOUSE BILL No. 2284—page 15
not such tangible personal property when installed or applied remains
tangible personal property or becomes a part of real estate, except that
no tax shall be imposed upon the service of installing or applying
tangible personal property in connection with the original construction
of a building or facility, the original construction, reconstruction,
restoration, remodeling, renovation, repair or replacement of a
residence or the construction, reconstruction, restoration, replacement
or repair of a bridge or highway.
For the purposes of this subsection:
(1) "Original construction" means the first or initial construction
of a new building or facility. The term "original construction" shall
include the addition of an entire room or floor to any existing building
or facility, the completion of any unfinished portion of any existing
building or facility and the restoration, reconstruction or replacement of
a building, facility or utility structure damaged or destroyed by fire,
flood, tornado, lightning, explosion, windstorm, ice loading and
attendant winds, terrorism or earthquake, but such term, except with
regard to a residence, shall not include replacement, remodeling,
restoration, renovation or reconstruction under any other
circumstances;
(2) "building" means only those enclosures within which
individuals customarily are employed, or which are customarily used to
house machinery, equipment or other property, and including the land
improvements immediately surrounding such building;
(3) "facility" means a mill, plant, refinery, oil or gas well, water
well, feedlot or any conveyance, transmission or distribution line of any
cooperative, nonprofit, membership corporation organized under or
subject to the provisions of K.S.A. 17-4601 et seq., and amendments
thereto, or municipal or quasi-municipal corporation, including the land
improvements immediately surrounding such facility;
(4) "residence" means only those enclosures within which
individuals customarily live;
(5) "utility structure" means transmission and distribution lines
owned by an independent transmission company or cooperative, the
Kansas electric transmission authority or natural gas or electric public
utility; and
(6) "windstorm" means straight line winds of at least 80 miles per
hour as determined by a recognized meteorological reporting agency or
organization;
(q) the gross receipts received for the service of repairing,
servicing, altering or maintaining tangible personal property which
when such services are rendered is not being held for sale in the regular
course of business, and whether or not any tangible personal property is
transferred in connection therewith. The tax imposed by this subsection
shall be applicable to the services of repairing, servicing, altering or
maintaining an item of tangible personal property which has been and
is fastened to, connected with or built into real property;
(r) the gross receipts from fees or charges made under service or
maintenance agreement contracts for services, charges for the providing
of which are taxable under the provisions of subsection (p) or (q);
(s) on and after January 1, 2005, the gross receipts received from
the sale of prewritten computer software and the sale of the services of
modifying, altering, updating or maintaining prewritten computer
software, whether the prewritten computer software is installed or
delivered electronically by tangible storage media physically
transferred to the purchaser or by load and leave;
(t) the gross receipts received for telephone answering services;
(u) the gross receipts received from the sale of prepaid calling
service and prepaid wireless calling service as defined in K.S.A. 79- HOUSE BILL No. 2284—page 16
3673, and amendments thereto;
(v) all sales of bingo cards, bingo faces and instant bingo tickets
by licensees under K.S.A. 75-5171 et seq., and amendments thereto,
shall be exempt from taxes imposed pursuant to this section;
(w) all sales of charitable raffle tickets in accordance with K.S.A.
75-5171 et seq., and amendments thereto, shall be exempt from taxes
imposed pursuant to this section; and
(x) commencing on January 1, 2023, and thereafter, the state rate
on the gross receipts from the sale of food and food ingredients shall be
as set forth in K.S.A. 2023 Supp. 79-3603d, and amendments thereto.
Sec. 9. K.S.A. 2023 Supp. 79-3603d is hereby amended to read as
follows: 79-3603d. (a) There is hereby levied and there shall be
collected and paid a tax upon the gross receipts from the sale of food
and food ingredients. The rate of tax shall be as follows:
(1) Commencing on January 1, 2023, at the rate of 4%;
(2) commencing on January 1, 2024, at the rate of 2%; and
(3) commencing on January 1, 2025 April 1, 2024, and thereafter,
at the rate of 0%.
(b) The provisions of this section shall not apply to prepared food
unless sold without eating utensils provided by the seller and described
below:
(1) Food sold by a seller whose proper primary NAICS
classification is manufacturing in sector 311, except subsector 3118
(bakeries);
(2) (A) food sold in an unheated state by weight or volume as a
single item; or
(B) only meat or seafood sold in an unheated state by weight or
volume as a single item;
(3) bakery items, including bread, rolls, buns, biscuits, bagels,
croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins,
bars, cookies and tortillas; or
(4) food sold that ordinarily requires additional cooking, as
opposed to just reheating, by the consumer prior to consumption.
(c) The provisions of this section shall be a part of and
supplemental to the Kansas retailers' sales tax act.
Sec. 10. K.S.A. 2023 Supp. 79-3620 is hereby amended to read as
follows: 79-3620. (a) All revenue collected or received by the director
of taxation from the taxes imposed by this act shall be remitted to the
state treasurer in accordance with the provisions of K.S.A. 75-4215,
and amendments thereto. Upon receipt of each such remittance, the
state treasurer shall deposit the entire amount in the state treasury, less
amounts withheld as provided in subsection (b) and amounts credited
as provided in subsections (c), (d) and (e), to the credit of the state
general fund.
(b) A refund fund, designated as "sales tax refund fund" not to
exceed $100,000 shall be set apart and maintained by the director from
sales tax collections and estimated tax collections and held by the state
treasurer for prompt payment of all sales tax refunds. Such fund shall
be in such amount, within the limit set by this section, as the director
shall determine is necessary to meet current refunding requirements
under this act. In the event such fund as established by this section is, at
any time, insufficient to provide for the payment of refunds due
claimants thereof, the director shall certify the amount of additional
funds required to the director of accounts and reports who shall
promptly transfer the required amount from the state general fund to the
sales tax refund fund, and notify the state treasurer, who shall make
proper entry in the records.
(c) (1) On January 1, 2023, the state treasurer shall credit 17% of
the revenue collected and received from the tax imposed by K.S.A. 79- HOUSE BILL No. 2284—page 17
3603, and amendments thereto, at the rates provided in K.S.A. 79-3603,
and amendments thereto, and K.S.A. 2023 Supp. 79-3603d, and
amendments thereto, and deposited as provided by subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the state
highway fund.
(2) On January 1, 2025 April 1, 2024, and thereafter, the state
treasurer shall credit 18% of the revenue collected and received from
the tax imposed by K.S.A. 79-3603, and amendments thereto, at the
rates provided in K.S.A. 79-3603, and amendments thereto, and K.S.A.
2023 Supp. 79-3603d, and amendments thereto, and deposited as
provided by subsection (a), exclusive of amounts credited pursuant to
subsection (d), in the state highway fund.
(d) The state treasurer shall credit all revenue collected or received
from the tax imposed by K.S.A. 79-3603, and amendments thereto, as
certified by the director, from taxpayers doing business within that
portion of a STAR bond project district occupied by a STAR bond
project or taxpayers doing business with such entity financed by a
STAR bond project as defined in K.S.A. 12-17,162, and amendments
thereto, that was determined by the secretary of commerce to be of
statewide as well as local importance or will create a major tourism
area for the state or the project was designated as a STAR bond project
as defined in K.S.A. 12-17,162, and amendments thereto, to the city
bond finance fund, which fund is hereby created. The provisions of this
subsection shall expire when the total of all amounts credited hereunder
and under K.S.A. 79-3710(d), and amendments thereto, is sufficient to
retire the special obligation bonds issued for the purpose of financing
all or a portion of the costs of such STAR bond project.
(e) All revenue certified by the director of taxation as having been
collected or received from the tax imposed by K.S.A. 79-3603(c), and
amendments thereto, on the sale or furnishing of gas, water, electricity
and heat for use or consumption within the intermodal facility district
described in this subsection, shall be credited by the state treasurer to
the state highway fund. Such revenue may be transferred by the
secretary of transportation to the rail service improvement fund
pursuant to law. The provisions of this subsection shall take effect upon
certification by the secretary of transportation that a notice to proceed
has been received for the construction of the improvements within the
intermodal facility district, but not later than December 31, 2010, and
shall expire when the secretary of revenue determines that the total of
all amounts credited hereunder and pursuant to K.S.A. 79-3710(e), and
amendments thereto, is equal to $53,300,000, but not later than
December 31, 2045. Thereafter, all revenues shall be collected and
distributed in accordance with applicable law. For all tax reporting
periods during which the provisions of this subsection are in effect,
none of the exemptions contained in K.S.A. 79-3601 et seq., and
amendments thereto, shall apply to the sale or furnishing of any gas,
water, electricity and heat for use or consumption within the intermodal
facility district. As used in this subsection, "intermodal facility district"
shall consist of an intermodal transportation area as defined by K.S.A.
12-1770a(oo), and amendments thereto, located in Johnson county
within the polygonal-shaped area having Waverly Road as the eastern
boundary, 191
st
Street as the southern boundary, Four Corners Road as
the western boundary, and Highway 56 as the northern boundary, and
the polygonal-shaped area having Poplar Road as the eastern boundary,
183
rd
Street as the southern boundary, Waverly Road as the western
boundary, and the BNSF mainline track as the northern boundary, that
includes capital investment in an amount exceeding $150 million for
the construction of an intermodal facility to handle the transfer, storage
and distribution of freight through railway and trucking operations. HOUSE BILL No. 2284—page 18
Sec. 11. K.S.A. 2023 Supp. 79-3703 is hereby amended to read as
follows: 79-3703. (a) There is hereby levied and there shall be collected
from every person in this state a tax or excise for the privilege of using,
storing, or consuming within this state any article of tangible personal
property. Such tax shall be levied and collected in an amount equal to
the consideration paid by the taxpayer multiplied by the rate of 6.5%.
(b) Commencing on January 1, 2023, and thereafter, the state rate
on the amount equal to the consideration paid by the taxpayer from the
sale of food and food ingredients as provided in K.S.A. 79-3603, and
amendments thereto, shall be as set forth in K.S.A. 2023 Supp. 79-
3603d, and amendments thereto.
(c) On and after January 1, 2023, 17% and on and after January 1,
2025 April 1, 2024, 18% of the tax rate imposed pursuant to this section
and the rate provided in K.S.A. 2023 Supp. 79-3603d, and amendments
thereto, shall be levied for the state highway fund, the state highway
fund purposes and those purposes specified in K.S.A. 68-416, and
amendments thereto, and all revenue collected and received from such
tax levy shall be deposited in the state highway fund.
(d) Within a redevelopment district established pursuant to K.S.A.
74-8921, and amendments thereto, there is hereby levied and there shall
be collected and paid an additional tax of 2% until the earlier of: (1)
The date the bonds issued to finance or refinance the redevelopment
project undertaken in the district have been paid in full; or (2) the final
scheduled maturity of the first series of bonds issued to finance the
redevelopment project.
(e) All property purchased or leased within or without this state
and subsequently used, stored or consumed in this state shall be subject
to the compensating tax if the same property or transaction would have
been subject to the Kansas retailers' sales tax had the transaction been
wholly within this state.
Sec. 12. K.S.A. 2023 Supp. 79-3710 is hereby amended to read as
follows: 79-3710. (a) All revenue collected or received by the director
under the provisions of this act shall be remitted to the state treasurer in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury, less amounts set apart as
provided in subsection (b) and amounts credited as provided in
subsection (c), (d) and (e), to the credit of the state general fund.
(b) A revolving fund, designated as "compensating tax refund
fund" not to exceed $10,000 shall be set apart and maintained by the
director from compensating tax collections and estimated tax
collections and held by the state treasurer for prompt payment of all
compensating tax refunds. Such fund shall be in such amount, within
the limit set by this section, as the director shall determine is necessary
to meet current refunding requirements under this act.
(c) (1) On January 1, 2023, the state treasurer shall credit 17% of
the revenue collected and received from the tax imposed by K.S.A. 79-
3703, and amendments thereto, at the rates provided in K.S.A. 79-3703,
and amendments thereto, and K.S.A. 2023 Supp. 79-3603d, and
amendments thereto, and deposited as provided by subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the state
highway fund.
(2) On January 1, 2025 April 1, 2024, and thereafter, the state
treasurer shall credit 18% of the revenue collected and received from
the tax imposed by K.S.A. 79-3703, and amendments thereto, at the
rates provided in K.S.A. 79-3703, and amendments thereto, and K.S.A.
2023 Supp. 79-3603d, and amendments thereto, and deposited as
provided by subsection (a), exclusive of amounts credited pursuant to
subsection (d), in the state highway fund. HOUSE BILL No. 2284—page 19
(d) The state treasurer shall credit all revenue collected or received
from the tax imposed by K.S.A. 79-3703, and amendments thereto, as
certified by the director, from taxpayers doing business within that
portion of a redevelopment district occupied by a redevelopment
project that was determined by the secretary of commerce to be of
statewide as well as local importance or will create a major tourism
area for the state as defined in K.S.A. 12-1770a, and amendments
thereto, to the city bond finance fund created by K.S.A. 79-3620(d),
and amendments thereto. The provisions of this subsection shall expire
when the total of all amounts credited hereunder and under K.S.A. 79-
3620(d), and amendments thereto, is sufficient to retire the special
obligation bonds issued for the purpose of financing all or a portion of
the costs of such redevelopment project.
This subsection shall not apply to a project designated as a special
bond project as defined in K.S.A. 12-1770a(z), and amendments
thereto.
(e) All revenue certified by the director of taxation as having been
collected or received from the tax imposed by K.S.A. 79-3603(c), and
amendments thereto, on the sale or furnishing of gas, water, electricity
and heat for use or consumption within the intermodal facility district
described in this subsection, shall be credited by the state treasurer to
the state highway fund. Such revenue may be transferred by the
secretary of transportation to the rail service improvement fund
pursuant to law. The provisions of this subsection shall take effect upon
certification by the secretary of transportation that a notice to proceed
has been received for the construction of the improvements within the
intermodal facility district, but not later than December 31, 2010, and
shall expire when the secretary of revenue determines that the total of
all amounts credited hereunder and pursuant to K.S.A. 79-3620(e), and
amendments thereto, is equal to $53,300,000, but not later than
December 31, 2045. Thereafter, all revenues shall be collected and
distributed in accordance with applicable law. For all tax reporting
periods during which the provisions of this subsection are in effect,
none of the exemptions contained in K.S.A. 79-3601 et seq., and
amendments thereto, shall apply to the sale or furnishing of any gas,
water, electricity and heat for use or consumption within the intermodal
facility district. As used in this subsection, "intermodal facility district"
shall consist of an intermodal transportation area as defined by K.S.A.
12-1770a(oo), and amendments thereto, located in Johnson county
within the polygonal-shaped area having Waverly Road as the eastern
boundary, 191
st
Street as the southern boundary, Four Corners Road as
the western boundary, and Highway 56 as the northern boundary, and
the polygonal-shaped area having Poplar Road as the eastern boundary,
183
rd
Street as the southern boundary, Waverly Road as the western
boundary, and the BNSF mainline track as the northern boundary, that
includes capital investment in an amount exceeding $150 million for
the construction of an intermodal facility to handle the transfer, storage
and distribution of freight through railway and trucking operations.
Sec. 13. K.S.A. 79-1107 and 79-1108 and K.S.A. 2023 Supp. 79-
201x, 79-32,110, 79-32,117, 79-32,119, 79-32,121, 79-3603, 79-3603d,
79-3620, 79-3703 and 79-3710 are hereby repealed. HOUSE BILL No. 2284—page 20
Sec. 14. This act shall take effect and be in force from and after its
publication in the Kansas register.
I hereby certify that the above BILL originated in the
HOUSE, and was adopted by that body
HOUSE adopted
Conference Committee Report
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
SENATE adopted
Conference Committee Report
President of the Senate.
Secretary of the Senate.
APPROVED
Governor.