Bill > SB269

This bill establishes a mechanism for potential future tax rate reductions in Kansas, contingent upon specific financial conditions. The bill creates a complex formula that allows tax rate decreases when the state's general revenue fund collections exceed inflation-adjusted base year revenues (set at $5,969,395,529 for fiscal year 2024) and when the budget stabilization fund contains at least 15% of the prior 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 income and privilege taxes, with a gradual approach that first reduces lower tax rates and then moves to higher tax rates. The reductions will continue until certain thresholds are reached: the lower income tax rate reaches 4%, and specific normal and surtax rates for different types of taxpayers (including individuals, corporations, and financial institutions) are reduced to predetermined levels. The bill amends existing tax statutes to provide this framework and ensures that future tax rate decreases are tied to the state's financial performance and revenue growth.

Budget and Finance

Assessment and Taxation (S)

https://kslegislature.gov/li/b2025_26/measures/sb269/