Session of 2023
SENATE BILL No. 300
By Committee on Assessment and Taxation
3-7
AN ACT concerning privilege tax; relating to rates; decreasing the
privilege tax rates on banks, trust companies and savings and loan
associations by reducing the normal tax rates; amending K.S.A. 79-
1107 and 79-1108 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 79-1107 is hereby amended to read as follows: 79-
1107. 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) For tax year 2023, the normal tax shall be an amount equal to
2
1
/4% of such net income;
(2) for tax year 2024, the normal tax shall be an amount equal to
1.94% of such net income; and
(3) 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) the surtax shall be an amount equal to 2
1
/8% of such net income
in excess of $25,000.
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. 2. K.S.A. 79-1108 is hereby amended to read as follows: 79-
1108. 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) For tax year 2023, the normal tax on every trust company and
savings and loan association shall be an amount equal to 2
1
/4% of such net
income;
(2) for tax year 2024, the normal tax shall be an amount equal to
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1.93% of such net income; and
(3) for tax year 2025, and all tax years thereafter, the normal tax
shall be an amount equal to 1.61% of such net income; and
(b) the surtax on every trust company and savings and loan
association shall be an amount equal to 2
1
/4% of such net income in excess
of $25,000.
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. 3. K.S.A. 79-1107 and 79-1108 are hereby repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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