Bill > HB2318

This bill establishes a mechanism for future income tax rate reductions that is contingent on two key conditions: first, the state's adjusted general revenue fund collections must exceed inflation-adjusted base year revenues, and second, the budget stabilization fund must contain at least 20% of the prior fiscal year's state tax receipt revenues. Starting August 15, 2025, the director of the budget will annually determine if these conditions are met. If they are, the secretary of revenue will calculate and implement tax rate reductions for both personal and corporate income taxes. The bill specifically outlines a gradual reduction process for income tax rates, with the lower income tax rate being reduced to 4% and the higher income tax rate ultimately being reduced to 4%, and corresponding reductions for corporate privilege taxes. The base year for revenue comparison is fiscal year 2024, and the tax rate reductions will be calculated based on excess fiscal year general revenue fund collections, with adjustments made to tax brackets and income thresholds to reflect the new rates. The bill aims to create a systematic approach to tax rate reductions that is directly tied to the state's revenue performance and fiscal stability.

Budget and Finance

Taxation (H)

https://kslegislature.gov/li/b2025_26/measures/hb2318/