Taxation

HB 2098 adds community theaters operated by not-for-profit corporations to Kansas' list of entities exempt from state sales tax. Specifically, it amends the sales tax code to include these theaters under the existing exemption for nonprofit organizations purchasing goods or services for their own use. This change directly affects Kansas-based community theaters run by nonprofits, allowing them to avoid paying sales tax on qualifying purchases like equipment, supplies, and services. The bill modifies Section 79-3606 of Kansas law to clarify that such theaters qualify for the same tax exemption previously available to schools, hospitals, and other nonprofits.

SB 319 would allow owners of qualifying residential or commercial/industrial property to receive a property tax rebate if they sell the property for less than 97% of its county appraised value during a qualifying sale (an arm's-length transaction in an open market). The rebate equals the excess property tax paid compared to what would have been due at full appraised value, covering the sale year and up to four prior years. To qualify, properties must remain in the same use, condition, and classification as at the valuation date, and owners must apply by December 20 of the year after the sale. The bill takes effect for sales on or after July 1, 2026.

HB 2469 expands a tax credit for railroad track maintenance in Kansas, allowing eligible businesses to apply the credit against income tax, premium taxes, or privilege fees - not just income tax as before. It directly affects class II/III railroads and rail siding owners (eligible taxpayers), as well as their customers (e.g., businesses using short-line rail) and vendors (e.g., maintenance service providers). Unused credits can be transferred to other businesses paying those specific taxes within five years, with a cap of $5,000 per mile of track or $5,000 per rail siding annually, and a total annual limit of $8.72 million. The bill changes how these credits are applied and shared, making them more flexible for qualifying rail-related businesses.

This bill changes how homeowners can partially reclaim property with delinquent taxes. It allows owners of homestead properties (primary residences) to partially redeem their property by paying only the current year's taxes and interest, without needing to pay special assessments for previous years. Previously, partial redemption required payment of all delinquent special assessments, not just the year being redeemed. The change applies statewide except in Johnson County, which has separate rules. This simplifies the process for homeowners seeking to avoid full tax foreclosure.

HB 2456 would allow Kansas cities and counties to set a 0% sales tax rate on food and food ingredients. Local governments could adopt this through ordinances, requiring them to notify the state tax director within 30 days. Businesses selling food would pay no local sales tax on these items under this option. The bill amends tax law to add this provision, enabling localities to choose zero tax for food sales without changing state tax rates.