Bill > SB259

This bill establishes a mechanism for future personal and corporate income tax rate reductions that are contingent on state tax receipt revenues exceeding inflation-adjusted baseline revenues. Starting August 15, 2025, the director of the budget will determine if the state's general revenue fund collections from the previous fiscal year exceed the inflation-adjusted base year revenues (set at $10,003,833,599 for fiscal year 2024). If excess revenues are confirmed, the secretary of revenue will calculate tax rate reductions for both individual and corporate income taxes. The bill specifies a gradual reduction process where income tax rates will be decreased proportionally, with lower rates reducing first until reaching 4.5%, and then higher rates will be reduced. For corporations, the bill outlines specific reductions for normal and surtax rates for different types of financial institutions, including national banks, state banks, trust companies, and savings and loan associations. These rate reductions will continue incrementally as long as the state's revenues exceed the inflation-adjusted baseline, with built-in stops to prevent rates from falling below 4.5% for individual income tax and specific lower percentages for corporate taxes. The goal is to tie tax rate reductions directly to the state's economic performance and revenue generation.

Budget and Finance

Assessment and Taxation (S)

https://kslegislature.gov/li/b2025_26/measures/sb259/