Kansas 2025-2026 Regular Session

Kansas House Bill HB2231

Introduced
2/4/25  
Refer
2/4/25  
Report Pass
2/13/25  
Engrossed
2/26/25  
Refer
2/27/25  
Report Pass
3/13/25  
Enrolled
4/11/25  

Caption

Providing an additional personal exemption for head of household tax filers and increasing the personal exemption for certain disabled veterans for purposes of income tax, modifying the definition of household income related to increased property tax homestead refund claims, providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, providing for the apportionment pursuant to the three-factor test of a manufacturer who sells alcoholic liquor, requiring the use of single sales factor pursuant to the multistate tax compact, establishing deductions from income when using the single sales factor and receipts factor, providing for the decrease in corporate income tax rates, determining when sales other than tangible personal property are made in the state, excluding sales of a unitary business group of electric and natural gas public utilities, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers.

Impact

The implications of HB 2231 on state laws include significant alterations to personal tax filings, particularly for those eligible under its provisions including seniors and veterans. By amplifying the personal exemptions, the bill intends to alleviate tax burdens on vulnerable groups, enhancing fiscal support for lower-income families. Furthermore, the integration of a single sales factor for apportionment could streamline processes for corporations operating in Kansas, potentially promoting economic growth while aligning with practices outlined in the multistate tax compact.

Summary

House Bill 2231 aims to provide additional tax relief by expanding personal exemptions for head of household tax filers and increasing personal exemptions for certain disabled veterans. The bill modifies the definition of household income and decreases thresholds for income and appraised value related to property tax homestead refund claims. It also addresses the apportionment of income for corporations and financial institutions, transitioning toward a single sales factor approach for determining state tax liabilities, which is anticipated to simplify tax calculations and promote fairness in taxation across different enterprise types.

Sentiment

Discussions surrounding the bill have shown a generally positive sentiment from legislative supporters, particularly regarding its utility in assisting disabled veterans and families headed by individuals in lower-income brackets. However, some apprehension was expressed about the future implications of the tax changes for corporate entities, especially regarding fairness and ease of compliance. Overall, the bill resonates well with proponents advocating for equitable taxation, though it raises questions concerning the balance of revenue generation and adequate fiscal resources for state services.

Contention

Notably, the core point of contention lies in the projected impact of the corporate tax rate reductions that coincide with increased personal exemptions. Critics argue that while the bill's intent is commendable, it may lead to diminished revenues for state-funded programs if corporate tax receipts decline significantly and are not compensated for elsewhere. The need for a thorough evaluation of fiscal impacts on the broader state budget is paramount, suggesting a cautious approach toward implementation.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2798

Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor and the decrease in corporate income tax rates.

KS HB2796

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

KS SB507

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

KS HB2110

Allowing single sales factor apportionment of business income for certain taxpayers.

KS SB484

Providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers.

KS HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS HB2096

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, increasing the tax credit amount for household and dependent care expenses, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing a property tax rebate for certain business property operated in competition with property owned or operated by a governmental entity, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

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.

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 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.

Similar Bills

KS HB2336

Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor, the decrease in corporate income tax rates determining when sales other than tangible personal property are made in the state and excluding sales of a unitary business group of electric and natural gas public utilities.

KS SB507

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

KS HB2796

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

AK SB113

Apportion Taxable Income;digital Business

MO SB1212

Modifies provisions relating to the apportionment of income for financial institutions

KS HB2110

Allowing single sales factor apportionment of business income for certain taxpayers.

AK SB122

Apportion Taxable Income;digital Business

MT SB124

Revise corporate income tax apportionment