Kansas 2023-2024 Regular Session

Kansas House Bill HB2796

Introduced

2/12/24

Refer

2/12/24

Failed

4/30/24

Caption

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.

Impact

The implementation of HB 2796 is expected to have significant implications on Kansas state revenue collection and the economic landscape. By adopting the single sales factor method, it is anticipated that businesses will benefit from a more equitable tax environment. Proponents argue that this change will encourage economic growth, attract investment, and enhance compliance among businesses operating within Kansas and across state lines. However, there is concern regarding its potential impact on local budgets, particularly if businesses operate at a scale that results in reduced tax contributions to local governments.

Summary

House Bill 2796 pertains to the apportionment of business income in the state of Kansas, requiring the use of a single sales factor as mandated by the Multistate Tax Compact. This legislative proposal aims to streamline how businesses allocate their income for tax purposes, potentially simplifying the tax code and providing a clearer framework for businesses operating in multiple jurisdictions. The bill seeks to amend several sections of the Kansas Statutes Annotated, therefore updating existing laws related to income apportionment and taxation.

Contention

While supporters of HB 2796 advocate for its benefits in taxation clarity and fairness, there are notable points of contention among state legislators and stakeholders. Critics worry that the bill could complicate tax collection for local governance and disadvantage smaller businesses that may struggle to adapt to the new apportionment rules. The debate centers on the balance between streamlining state taxes to attract businesses and ensuring that local jurisdictions do not experience detrimental financial impacts as a result of these changes.

Latest HB2796 Activity

Companion Bills

No companion bills found.

Similar Bills

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 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.