Budget & Taxes (Revenue)

HB 2004 would authorize Seward County to impose a countywide sales tax on retail purchases, subject to voter approval through an election. The tax revenue would specifically finance roadway and bridge construction, maintenance, and improvements within the county. The bill amends Kansas law (K.S.A. 12-187, 12-189, and 12-192) to add Seward County to the list of counties permitted to use this tax for infrastructure projects. The measure passed committee in March 2025 and is awaiting full legislative consideration.

HB 2390 amends Kansas tax law to allow Jackson County to impose a countywide retailers' sales tax (subject to voter approval) specifically for funding hospital services within the county. This replaces the previous use of a similar tax for the Banner Creek reservoir project, as referenced in historical elections. The key mechanism requires Jackson County's governing body to seek voter approval via election or petition (10% of eligible voters) before implementing the tax. The tax revenue would directly support local hospitals, affecting county residents through healthcare services and potential tax changes. This is a policy change to redirect existing tax authority toward healthcare infrastructure.

SB 223 authorizes Russell County to seek voter approval for a countywide sales tax on retail purchases, specifically to fund school district facilities like attendance centers. The bill amends Kansas law to allow Russell County commissioners to propose this tax after meeting standard voter petition thresholds (10% of voters or city resolutions), similar to existing provisions for other counties. If approved by voters, the tax revenue would directly support school facility costs, with the tax ending once all project costs are covered. This bill does not create the tax itself but provides Russell County the legal authority to pursue it through the established voter approval process.

SB 259 requires that future personal and corporate income tax rate decreases in Kansas can only occur if actual state tax revenues exceed an inflation-adjusted baseline revenue target set for fiscal year 2024 ($10.004 billion). The bill establishes a process where, each August 15, the state budget director compares the previous year's actual tax collections to revenues adjusted for inflation; only if collections exceed this target will tax rates be reduced. Tax rate reductions must first lower the lowest income tax bracket (starting at 3.1% for 2018-2023) until it reaches 4.5%, then reduce higher brackets and surtaxes until the combined rate equals 4.5%. This bill directly affects all Kansas taxpayers who pay state income tax by tying future rate cuts to specific revenue performance.

SB 269 ties future reductions to Kansas income and privilege tax rates to two conditions: state revenue collections must exceed inflation-adjusted targets from fiscal year 2024, and the budget stabilization fund must hold at least 15% of prior-year tax receipts. If both conditions are met, the state treasurer calculates proportional tax rate cuts (down to a 4% minimum rate for lower brackets) for the next tax year. The bill directly affects Kansas taxpayers subject to income and privilege taxes, including businesses like banks and trust companies. It modifies tax rate calculation rules in state law but does not change current rates or provide immediate tax relief.