Kansas 2023-2024 Regular Session

Kansas House Bill HB2318

Introduced
2/7/23  
Refer
2/7/23  

Caption

Decreasing the state rate for sales and compensating use tax to 6.15%.

Impact

The reduction in the sales tax rate proposed by HB 2318 is expected to lower overall tax burdens on consumers, thus encouraging spending and economic activity. The state anticipates that by aligning its sales tax policy with consumer interests, it can foster a more robust marketplace. However, committees discussing the bill have raised concerns about the long-term implications for state funding, particularly regarding education and infrastructure, which rely heavily on sales tax revenue for financial support. The measure's supporters argue that the economic stimulation resulting from increased consumer spending could compensate for potential shortfalls in tax revenue.

Summary

House Bill 2318 aims to amend the existing sales and compensating use tax laws in Kansas by reducing the state tax rate from 6.5% to 6.15%. This change is proposed to provide financial relief to consumers and businesses, particularly in light of current economic conditions. The bill reinforces the government's commitment to maintain a favorable business environment while ensuring adequate tax revenue to fund essential state services. The bill establishes that this reduction in tax rate will take effect on January 1, 2023, potentially impacting the fiscal landscape of the state.

Contention

Debate surrounding HB 2318 has highlighted various points of contention. Proponents emphasize the necessity of lowering the tax rate to support residents and businesses, while opponents caution against possible adverse effects on state revenue, especially during budgetary constraints. This disagreement reflects broader discussions in the legislature about balancing tax relief with the need for sustainable funding for public services. The lawmakers involved will need to consider not only the economic forecasts but also the potential impacts on social services that depend on these tax revenues.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2277

Decreasing the state rate for sales and use taxes for prepared food and increasing the percent credited to the state highway fund from sales and use tax revenue collected.

KS HB2256

Decreasing the state rate for sales and use taxes for sales of food, food ingredients and prepared food and modifying the percent credited to the state highway fund from revenue collected.

KS HB2584

Imposing sales and compensating use tax on digital property and subscription services and providing for the decrease in sales and compensating use tax rates in certain circumstances.

KS SB539

Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

KS HB2546

Reducing the state rate for sales and use taxes for sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS SB54

Expanding the eligible uses to qualify for the 0% state sales tax rate for certain utilities and providing for the levying of local sales tax on such sales by cities and counties.

KS HB2221

Expanding the eligible uses for the 0% state rate for sales tax for certain utilities and the levying of sales tax on such sales by cities and counties and authorizing cities and counties to exempt such sales from such city or county taxes.

KS HB2837

Simplifying income tax rates for individuals, increasing the 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 and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

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.

Similar Bills

CA SB765

Planning and zoning: housing.

CA SB989

Property taxation: taxable value transfers: disclosure and deferment.

CA AB3122

Property taxation: disaster relief: payment of deferred taxes.

CA SB381

Surplus residential property: priorities, procedures, price, and fund: City of South Pasadena.

NJ A4262

Exempts creditor from paying municipal property registration fee if property is subject to automatic stay under federal Bankruptcy Code.

NJ S3999

Exempts creditor from paying municipal property registration fee if property is subject to automatic stay under federal Bankruptcy Code.

CA SB812

Property taxation: tax-defaulted property sales: minimum price.

CA SB275

Alcohol and drug treatment: youth.