Kansas 2025-2026 Regular Session

Kansas Senate Bill SB283

Introduced
3/3/25  

Caption

Decreasing individual income tax rates, discontinuing tax credits of the high performance incentive program and the Kansas affordable housing tax credit act, discontinuing payroll withholding tax benefits of the promoting employment across Kansas act, discontinuing the crediting of certain amounts to the job creation program fund and repealing certain tax credits.

Impact

The bill's impact on state laws includes the repeal of multiple tax incentives tied to existing programs like the high performance incentive program and the Kansas affordable housing tax credit act. Such actions could streamline fiscal responsibility but might also raise concerns among businesses currently relying on these benefits. The discontinuation of crucial supports may lead to an initial downturn in business expansions and developments in sectors historically supported by these tax credits, potentially affecting job creation and local economies in the short term.

Summary

Senate Bill 283 proposes significant amendments to the Kansas income tax structure, focusing on reducing tax rates for individuals and discontinuing certain business tax credits. The bill aims to adjust the income tax rates for various income brackets, with notable changes anticipated in tax years 2024 and beyond. For instance, it sets a new flat tax rate of 5.2% for individuals with taxable incomes not exceeding $23,000 starting in 2024. Additionally, higher income brackets will face incremental increases, introducing differing tax responsibilities based on earnings. This restructuring is designed to simplify tax liabilities and increase transparency for taxpayers.

Contention

Notably, there is contention surrounding the bill's discontinuation of benefits previously afforded under various programs aimed at stimulating business growth and employment across Kansas. Critics argue that removing these incentives could deter new investments and harm small businesses, risking job losses in already vulnerable areas. Proponents, however, believe that a simplified tax structure will foster a more favorable environment for all businesses by leveling the playing field and encouraging a more robust and equitable economic framework that can ultimately benefit the wider community.

Companion Bills

No companion bills found.

Previously Filed As

KS SB546

Decreasing the corporate income tax rate, discontinuing tax credits of the high performance incentive program and payroll withholding tax benefits of the promoting employment across Kansas act and repealing certain unused tax credits.

KS SB329

Discontinuing the angel investor tax credit program after 2024.

KS HB2201

Senate Substitute for HB 2201 by Committee on Assessment and Taxation - Decreasing the corporate income tax rate and eliminating certain unused tax credits.

KS SB94

Discontinuing state property tax levies for the Kansas educational building fund and the state institutions building fund and providing for financing therefor from the state general fund.

KS HB2457

Providing an income tax rate of 4.95% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income and providing that all social security income qualifies for the subtraction modification commencing in tax year 2026, increasing the Kansas standard deduction for individuals and further increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax surtax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2023, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS SB169

House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS HB2815

Abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, discontinuing certain transfers to the special city and county highway fund and decreasing rate of ad valorem tax imposed by a school district.

KS HB2036

Senate Substitute for HB 2036 by Committee on Assessment and Taxation - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and providing for certain transfers to the state school district finance fund.

KS SB34

Expanding the use of bond proceeds under the Kansas rural housing incentive district act, the transferability of income, privilege and premium tax credits issued under the Kansas housing investor tax credit act and enacting the Kansas urban housing incentive district act.

KS SB37

House Substitute for SB 37 by Committee on Financial Institutions and Pensions - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and providing for certain transfers to the state school district finance fund.

Similar Bills

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Decreasing the corporate income tax rate, discontinuing tax credits of the high performance incentive program and payroll withholding tax benefits of the promoting employment across Kansas act and repealing certain unused tax credits.

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KS SB296

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WV HB2006

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