Bill > HB2336

Here is a summary of the bill: This bill makes several significant changes to Kansas tax law, primarily focusing on how businesses calculate and apportion their income for tax purposes. Starting in tax year 2027, the bill mandates that businesses will use a single sales factor method to apportion their income, which means they will calculate their state tax liability based solely on the percentage of their total sales that occur in Kansas. The bill also introduces a complex deferred tax impact deduction for publicly traded companies, allowing them to offset potential tax liability changes resulting from the shift to the single sales factor method. Additionally, the bill modifies corporate income tax rates, with the normal tax rate set at 4% and a surtax of 3% on income over $50,000. The legislation also makes changes to how sales are determined for tax purposes, particularly for services, intangible property, and interest income, introducing more precise definitions and allocation methods. For electric and natural gas utilities, the bill includes specific provisions about how they can report sales and be included in tax calculations. The bill aims to modernize and simplify Kansas' corporate tax system, potentially making the state more attractive to businesses by providing more predictable and potentially lower tax burdens.

Budget and Finance

Taxation (H)

https://kslegislature.gov/li/b2025_26/measures/hb2336/