Bill > HB2377

This bill modifies how countywide retailers' sales tax revenue is apportioned among counties and cities in Kansas. Currently, half of the sales tax revenue is distributed based on the proportion of tangible property tax levies made by each governmental unit in the preceding year. The bill changes this distribution method to apportion the revenue based on total assessed valuations of property taxes instead of the actual tax levies. This means that the allocation will now depend on the total value of taxable property in each jurisdiction, rather than the amount of taxes actually collected. Importantly, the bill stipulates that this new apportionment method will not change between July 1, 2025, and December 31, 2026, providing a transition period. The other half of the sales tax revenue will continue to be distributed based on population, with counties receiving a portion corresponding to their unincorporated population and cities receiving a share proportional to their population. The bill amends an existing statute (K.S.A. 12-192) and will take effect upon publication in the state statute book, potentially providing a more standardized and potentially more equitable method of distributing sales tax revenue across counties and cities.

Budget and Finance

Taxation (House)

https://kslegislature.gov/li/b2025_26/measures/hb2377/