Kansas 2023-2024 Regular Session

Kansas Senate Bill SB61

Introduced
1/19/23  
Refer
1/20/23  

Caption

Providing an income tax rate of 5% for individuals and corporations, decreasing the surtax for entities subject to the privilege tax and providing that future income tax rate decreases be contingent on exceeding revenue estimates.

Impact

If enacted, SB61 would have significant implications for state tax laws and revenue collection. The introduction of a standard 5% income tax rate represents a shift towards a more uniform tax structure, which may simplify compliance for taxpayers. The planned decrease in surtax could also provide financial relief for certain businesses, thereby stimulating economic growth. However, the connectivity of future tax decreases to revenue performance introduces an element of fiscal prudence, ensuring that any reductions are sustainable and aligned with the state's financial health.

Summary

Senate Bill 61 (SB61) introduces a new income tax rate set at 5% for both individuals and corporations. This measure is aimed at reconfiguring the state's tax structure by not only establishing this flat tax rate but also by decreasing the surtax applicable to entities that are subjected to the privilege tax. Furthermore, the bill stipulates that any future reductions in the income tax rate will be contingent upon the state exceeding its revenue estimates. This structured approach intends to ensure fiscal responsibility while potentially easing the tax burden on residents and businesses.

Contention

Debate around SB61 is expected to center on its potential impact on state-funded services and social programs. Supporters of the bill may argue that reducing taxes will encourage investment and attract new businesses to the state, fostering economic development. Detractors, on the other hand, may raise concerns that lowering tax rates could undermine the state's ability to fund essential services, such as education and public health, which rely heavily on tax revenue. Consequently, the discussions surrounding SB61 are likely to reflect broader themes of economic growth versus the maintenance of public services and community welfare.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2061

Providing an income tax rate of 5% for individuals and corporations, decreasing the surtax for entities subject to the privilege tax and providing that future income tax rate decreases be contingent on exceeding revenue estimates.

KS SB259

Providing that future personal and corporate income tax rate and privilege tax rate decreases be contingent on exceeding tax receipt revenues.

KS HB2318

Providing that future income and privilege tax rate decreases be contingent on exceeding tax receipt revenues.

KS SB269

Providing that future income tax and privilege tax rate decreases be contingent on exceeding revenue estimates and retaining a certain amount in the budget stabilization 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 SB300

House Substitute for SB 300 by Committee on Taxation - Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, providing for certain transfers to the special city and county highway fund and decreasing the rate of ad valorem tax imposed by a school district.

KS HB2175

Providing for future decreased income tax rates contingent on retention of a 7.5% state general fund ending balance.

KS HB2844

Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and decreasing the rate of ad valorem tax imposed by a school district.

KS HB2284

Providing an income tax rate of 5.25% for individuals, exempting all social security benefits from Kansas income tax, increasing the standard deduction by a cost-of-living adjustment, increasing 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 April 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

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