Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that reduces the corporate income tax rate in Kansas.

Highlights:

• Requires the director of the budget and the director of legislative research to, at the end of the 2028 fiscal year, certify the amount of actual corporate income tax revenue that is in excess of the prior fiscal year’s revenue (Sec. 1).

• Requires a reduction in the amount of corporate income tax in the following fiscal year that is equal to the amount of the excess in the 2028 fiscal year (Sec. 1).

• Exempts the following property from all property or ad valorem taxes (Sec. 2):

• Any off-road vehicle that is not operated on a highway;

• Any motorized bicycle, scooter, wheelchair, or other mobility device;

• Any trailer with a gross weight of 15,000 pounds or less; and

• Any marine equipment.

• Specifies that for taxable years beginning prior to 2027, all business income must be apportioned based on amendments made to the receipts factor, property factor, and payroll factor (Sec. 4).

• Specifies that for taxable years beginning with 2027, all business income must be apportioned to the state by multiplying business income by the receipts factor or the sales factor (Sec. 4-5).

• Establishes a deferred tax impact deduction for publicly traded companies beginning July 1, 2025 (Sec. 4-5).

• Specifies that a taxpaying, publicly traded company may be eligible for this deduction if the provisions of this Act result in an aggregate change in net deferred tax liability or net deferred tax asset (Sec. 4-5).

• Establishes a new additional exemption for individuals filing a federal income tax return as the head of a household in the amount of $2,320 beginning with tax year 2024 (Sec. 9).

Full Bill Text