HB 2090 establishes the Kansas Employee Emergency Savings Account (KEESA) program, allowing eligible Kansas employers to set up employee savings accounts with automatic payroll deductions. Employers receive an income and privilege tax credit for their deposits, while employees can subtract their own contributions from taxable income. The program requires employers to make a minimum $50 initial deposit per employee, offer federally insured accounts with mobile access, provide financial literacy tools, and report participation details annually. It directly affects Kansas employers participating in the program and their employees who choose to enroll in these emergency savings accounts.
HB 2005 creates a 75% income tax credit for Kansas veterans deemed totally disabled, permanently disabled, or unemployable under federal standards (38 C.F.R. § 3.340). It directly benefits eligible veterans who pay property taxes on their primary residence, allowing them to claim a credit equal to 75% of those taxes. The credit cannot exceed the actual property taxes paid and is unavailable if the veteran already received a homestead property tax refund or senior relief credit for the same property. Any excess credit beyond income tax liability will be refunded, and the credit applies to tax years starting in 2025.
HB 2162 would exempt the labor of installing materials during building repairs from Kansas sales tax. This applies to contractors performing reconstruction, restoration, remodeling, repair, or replacement work on buildings or facilities. The bill amends tax law to remove these installation services from taxable categories, meaning property owners wouldn't pay sales tax on the labor costs for these projects. It directly affects construction businesses and building owners in Kansas.
This bill allows Kansas residents who itemize deductions on their federal tax returns to deduct 100% of their gambling losses as part of their state itemized deductions, effective for tax years beginning January 1, 2025. It directly affects Kansas taxpayers who itemize federal deductions and have documented gambling losses (e.g., from casinos, sports betting, or lotteries). The change adds gambling losses to the list of allowable itemized deductions - alongside charitable contributions, medical expenses, and property taxes - mirroring federal tax treatment under Section 165(d) of the Internal Revenue Code. This is a policy change to the state tax code, not a procedural or commemorative measure.
HB 2066 requires Kansas business entities and public employers to register with and use the federal e-Verify program to confirm the work authorization of all new employees starting July 1, 2025. The bill also prohibits employers from claiming income tax deductions for wages paid to individuals without legal authorization to work in the United States. It makes it unlawful for employers to knowingly hire, recruit, or refer unauthorized workers, with enforcement handled by county attorneys or the state attorney general. This law directly affects all businesses and public employers in Kansas that hire new staff, including those operating without a business license.
HB 2073 would exempt feminine hygiene products (such as tampons and pads) and diapers from Kansas' state sales tax. This means consumers purchasing these essential items would no longer pay the state sales tax at checkout. The bill amends Kansas' sales tax law (K.S.A. 2024 Supp. 79-3606) to add these products to the list of tax-exempt items. It directly affects all Kansas residents who buy these products, making them more affordable without changing other tax rules.
SB 179 establishes a refundable child tax credit in Kansas for tax years 2025 and beyond. It provides credits ranging from $25 to $600 per qualifying child (under age 6) based on the taxpayer's adjusted gross income, with higher income levels receiving smaller credits. The credit reduces tax liability, and any excess is refunded to the taxpayer. It directly affects Kansas resident parents or guardians with children under 6 who meet residency and relationship criteria outlined in the bill.
HB 2394 establishes a new "tax use value" method for calculating property taxes in Kansas. It affects residential properties (including multi-family and mobile home communities), commercial/industrial properties, and mobile homes used for residential purposes. The bill requires these properties to be taxed based on the lower of either their current fair market value or an average of their fair market values over the previous 1-6 years (with a 50% threshold for new renovations), starting in 2026. This change modifies how property values are determined for tax assessment, but does not alter the existing tax rates (e.g., 11.5% for residential properties).
SB 51 provides a sales tax exemption in Kansas for qualified data center construction, equipment, and eligible labor costs, targeting firms committing to a minimum $250 million investment and creating 20 new Kansas-based jobs within two years of operations. The exemption covers construction/remodeling of data centers, data center equipment (like servers and cooling systems), and installation/maintenance labor, but excludes electricity costs. To qualify, companies must register with the state, submit an application, and sign an agreement with the Commerce Secretary outlining investment and job creation commitments. Failure to meet these requirements may result in repayment of tax exemptions or termination of the benefit.
HB 2318 ties future Kansas income and privilege tax rate cuts to specific revenue targets. It requires that actual tax collections from the previous fiscal year exceed an inflation-adjusted base year revenue amount (set at $10.0 billion for 2024) AND that the budget stabilization fund holds at least 20% of the prior year's tax revenue. If both conditions are met, tax rates must be reduced proportionally across income brackets, with a floor of 4.5% for the lowest income tax rate. This directly affects all Kansas individual and business taxpayers by linking tax rate changes to state revenue performance rather than automatic reductions. The bill modifies tax calculation rules to enforce these rate limits and ensure reductions occur only when revenue targets are surpassed.
