Kansas 2025-2026 Regular Session

Kansas Senate Bill SB259 Compare Versions

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1	1	Session of 2025
2	2	SENATE BILL No. 259
3	3	By Committee on Assessment and Taxation
4	4	2-11
5	5	AN ACT concerning taxation; relating to income tax; providing that future
6	6	tax rate decreases be contingent on exceeding revenue estimates;
7	7	amending K.S.A. 2024 Supp. 79-32,110 and repealing the existing
8	8	section.
9	9	Be it enacted by the Legislature of the State of Kansas:
10	10	New Section 1. (a) As used in this section:
11	11	(1) "Adjusted consumer price ratio" means the fiscal year consumer
12	12	price index divided by the base year consumer price index.
13	13	(2) "Adjusted general revenue fund collections" means actual tax
14	14	receipt revenues to the state general fund.
15	15	(3) "Base year revenues" means actual tax receipt revenues to the
16	16	state general fund for fiscal year 2024 in the amount of $10,003,833,599.
17	17	(4) "Base year consumer price index" means a 12-month average of
18	18	the not seasonally adjusted consumer price index for all urban consumers
19	19	for fiscal year 2024.
20	20	(5) "Excess fiscal year general revenue fund collections" means the
21	21	positive difference from subtracting the inflation adjusted base year
22	22	revenues from the adjusted general revenue fund collections from the
23	23	immediately preceding fiscal year.
24	24	(6) "Fiscal year consumer price index" means a 12-month average of
25	25	the not seasonally adjusted consumer price index for all urban consumers
26	26	for the immediately preceding fiscal year.
27	27	(7) "Inflation adjusted base year revenues" means the base year
28	28	revenues multiplied by the adjusted consumer price ratio.
29	29	(b) Commencing on August 15, 2025, and every August 15 thereafter,
30	30	the director of the budget, in consultation with the director of legislative
31	31	research, shall determine whether the total fiscal year adjusted general
32	32	revenue fund collections from the immediately preceding fiscal year are in
33	33	excess of the inflation adjusted base year revenues. If the total fiscal year
34	34	adjusted general revenue fund collections from the immediately preceding
35	35	fiscal year are in excess of the inflation adjusted base year revenues, the
36	36	director of the budget shall certify to the secretary of revenue the existence
37	37	of such excess and the amount of the excess.
38	38	(c) In the event that the secretary of revenue certifies that the adjusted
39	39	general revenue fund collections from the immediately preceding fiscal
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76	76	year are in excess of the inflation adjusted base year revenues, the
77	77	secretary shall calculate and publish the income tax rate reduction as a
78	78	result of the excess. In calculating the income tax rate reduction, the
79	79	excess fiscal year general revenue fund collections shall be computed that
80	80	would result in the reduction of the income tax rates pursuant to subsection
81	81	(d) in an amount approximately equal to the rate reductions down to the
82	82	nearest 0.01% to go into effect for the next tax year. Such rate reductions
83	83	shall remain in effect unless further reduced pursuant to this section. The
84	84	income tax brackets and taxable income thresholds prescribed in K.S.A.
85	85	79-32,110(a), and amendments thereto, shall be adjusted to reflect the
86	86	changes in income tax rates.
87	87	(d) The secretary shall first compute the reduction of the income tax
88	88	rates pursuant to K.S.A. 79-32,110(a), and amendments thereto, that
89	89	decreases proportionally all tax rates in effect. Once the lower income tax
90	90	rate is decreased to 4.5%, there shall be no further reductions to the lower
91	91	income tax rate and further reductions shall only be applied to reduce the
92	92	higher income tax rate in effect. Upon the higher income tax rate being
93	93	decreased to 4.5%, no further reductions shall occur to K.S.A. 79-
94	94	32,110(a), and amendments thereto. The secretary shall then compute
95	95	decreases to the surtax imposed pursuant to K.S.A. 79-32,110(c), and
96	96	amendments thereto. The surtax shall be decreased until the combined
97	97	normal and surtax rates equal 4.5% that are imposed pursuant to K.S.A.
98	98	79-32,110(c), and amendments thereto. Once the combined normal and
99	99	surtax rates pursuant to K.S.A. 79-32,110(a), and amendments thereto,
100	100	equal 4.5%, no further reductions shall occur.
101	101	Sec. 2. K.S.A. 2024 Supp. 79-32,110 is hereby amended to read as
102	102	follows: 79-32,110. (a) Resident individuals. Except as otherwise provided
103	103	by K.S.A. 79-3220(a), and amendments thereto, a tax is hereby imposed
104	104	upon the Kansas taxable income of every resident individual, which tax
105	105	shall be computed in accordance with the following tax schedules unless
106	106	otherwise modified pursuant to section 1, and amendments thereto:
107	107	(1) Married individuals filing joint returns.
108	108	(A) For tax years 2018 through 2023:
109	109	If the taxable income is: The tax is:
110	110	Not over $30,000…..............................3.1% of Kansas taxable
111	111	income
112	112	Over $30,000 but not over $60,000…..$930 plus 5.25% of excess
113	113	over $30,000
114	114	Over $60,000........................................$2,505 plus 5.7% of excess
115	115	over $60,000
116	116	(B) For tax year 2024, and all tax years thereafter:
117	117	If the taxable income is: The tax is:
118	118	Not over $46,000…...............................5.2% of Kansas taxable
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162	162	income
163	163	Over $46,000........................................$2,392 plus 5.58% of excess
164	164	over $46,000
165	165	(2) All other individuals.
166	166	(A) For tax years 2018 through 2023:
167	167	If the taxable income is: The tax is:
168	168	Not over $15,000..................................3.1% of Kansas taxable
169	169	income
170	170	Over $15,000 but not over $30,000.....$465 plus 5.25% of excess
171	171	over $15,000
172	172	Over $30,000........................................$1,252.50 plus 5.7% of
173	173	excess over $30,000
174	174	(B) For tax year 2024, and all tax years thereafter:
175	175	If the taxable income is: The tax is:
176	176	Not over $23,000….............................5.2% of Kansas taxable
177	177	income
178	178	Over $23,000........................................$1,196 plus 5.58% of excess
179	179	over $23,000
180	180	(b) Nonresident individuals. A tax is hereby imposed upon the Kansas
181	181	taxable income of every nonresident individual, which tax shall be an
182	182	amount equal to the tax computed under subsection (a) as if the
183	183	nonresident were a resident multiplied by the ratio of modified Kansas
184	184	source income to Kansas adjusted gross income.
185	185	(c) Corporations. A tax is hereby imposed upon the Kansas taxable
186	186	income of every corporation doing business within this state or deriving
187	187	income from sources within this state. Such tax shall consist of a normal
188	188	tax and a surtax and shall be computed as follows unless otherwise
189	189	modified pursuant to K.S.A. 2024 Supp. 74-50,321 or section 1, and
190	190	amendments thereto:
191	191	(1) The normal tax shall be in an amount equal to 4% of the Kansas
192	192	taxable income of such corporation; and
193	193	(2) the surtax shall be in an amount equal to 3% of the Kansas taxable
194	194	income of such corporation in excess of $50,000.
195	195	(d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable
196	196	income of estates and trusts at the rates provided in subsection (a)(2).
197	197	(e) Notwithstanding the provisions of subsections (a) and (b), for tax
198	198	years 2018 through 2023, married individuals filing joint returns with
199	199	taxable income of $5,000 or less, and all other individuals with taxable
200	200	income of $2,500 or less, shall have a tax liability of zero.
201	201	Sec. 3. K.S.A. 2024 Supp. 79-32,110 is hereby repealed.
202	202	Sec. 4. This act shall take effect and be in force from and after its
203	203	publication in the statute book.
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