Bill > HB2773

This bill modifies how manufacturers of alcoholic liquor in Kansas are taxed on their business income, specifically for tax years beginning on or after January 1, 2027. It introduces a distinction between "qualifying Kansas investors" and "general manufacturers." Qualifying Kansas investors, defined as those with significant property and payroll in the state (over $5 million in property value and $2 million in compensation paid), will use a simplified tax calculation method called the "single sales factor," meaning their business income is apportioned based solely on their sales within Kansas. All other alcoholic liquor manufacturers, referred to as general manufacturers, will continue to use the more complex "three-factor formula," which considers property, payroll, and sales to determine their business income apportionment. The bill also repeals the existing law on this matter and makes conforming changes to the relevant statute.

Budget and Finance

Taxation (House)

https://kslegislature.gov/li/b2025_26/measures/hb2773/