SB 280 requires local taxing entities (like cities, counties, or school districts) to obtain majority voter approval via a special election before raising total property taxes by more than the annual inflation rate, as measured by the U.S. Bureau of Labor Statistics' consumer price index. It excludes new construction taxes from the calculation of the tax levy limit and does not apply to certain statutorily fixed mill rates. The law takes effect January 1, 2026, mandating voter consent for tax increases beyond inflation for all other property tax levies. This directly affects local governments seeking to raise revenue above inflation and property owners whose taxes could be impacted by such increases.
This bill would exempt community pharmacies serving medically underserved areas from paying sales tax on their business purchases. It directly affects local pharmacies in communities with limited healthcare access, including those providing services to low-income or rural residents. The key provision removes sales tax for pharmacy purchases used to serve medically underserved patients, reducing operating costs for these providers. This policy change applies specifically to pharmacies meeting the "medically underserved" criteria defined in the bill. The exemption modifies Kansas' existing tax code to include these pharmacies under the sales tax exemption list.
SB 32 reduces insurance company premium tax rates in Kansas and stops the practice of sending 1% of those taxes to the insurance department's service regulation fund. Instead, it requires insurance companies to pay annual assessments based on their total assets (with a $500 minimum and $25,000 maximum per company) to fund the department's regulatory activities. This directly affects all insurance companies licensed to operate in Kansas, shifting their primary funding obligation from tax remittances to these asset-based assessments. The bill amends Kansas statutes 40-112 and 40-252 to implement these changes, effective January 1, 2026.
SB 226 would allow Kansas individual taxpayers who itemize deductions to deduct 100% of their gambling losses on their state income tax return, starting in tax year 2025. The bill amends Kansas tax law to add "losses from wagering transactions" as a deductible item, matching the federal deduction rule for such losses. This change applies to tax years beginning January 1, 2025, and affects residents with gambling losses that exceed winnings under federal rules. It does not alter current deductions for other items like charitable contributions or medical expenses.
SB 107 would remove sales tax from period products, diapers, and incontinence products purchased by consumers in Kansas. This tax exemption directly affects all Kansas residents who buy these essential hygiene items, making them more affordable. The bill amends Kansas tax law (K.S.A. 2024 Supp. 79-3606) to add these products to the list of exempt items, similar to how other necessities like certain food items are treated. The change would take effect upon the bill's passage, reducing the cost for buyers at retail stores.
HB 2301 repeals a Kansas law (K.S.A. 75-3718b) that required state agencies reporting to the governor to implement a performance-based budgeting system. This system previously mandated agencies to create detailed program inventories, adopt standardized budget processes, and track outcome-based performance measures. The bill eliminates these requirements, shifting away from tying budget decisions to measurable program outcomes. It directly affects all executive branch agencies under the governor’s authority, removing specific accountability mechanisms for how state funds are allocated and spent.
SB 87 expands Kansas' tax credit program for low-income student scholarships by removing the requirement that students must have previously attended a public school. It increases the tax credit rate for donors from 70% to 75% for tax years starting in 2023, while maintaining an annual scholarship cap of $8,000 per student. The bill directly affects low-income students (including those in foster care, military families, or with parents in emergency services) and scholarship organizations by broadening eligibility and making contributions more valuable for donors. Key mechanisms include eliminating prior public school enrollment as a requirement and raising the credit rate to encourage greater private funding for educational scholarships.
SB 99 requires state agency heads to certify, by June 30, 2025, the number of full-time positions paid from the state general fund that have been vacant for over 180 days. These certified positions are abolished effective July 1, 2025, and removed from all budget documents. The bill also lapses (removes) all 2026 state general fund appropriations budgeted for salaries and benefits of these abolished positions. This directly affects all state agencies covered by the 2025 budget, as it eliminates vacant roles and redirects their allocated funding.
HB 2078 creates a 75% income tax credit for Kansas taxpayers who contribute to eligible child care providers or nonprofit intermediaries, with a maximum credit of $200,000 per taxpayer annually. Contributions must be verified by the state, used exclusively for child care purposes (like facility upgrades, staff training, or quality improvements for children under 12), and cannot be for direct child care services or benefit the taxpayer financially. The total credit pool is capped at $20 million yearly, and providers must issue a verification form within 60 days to claim the credit. Taxpayers cannot claim credits for contributions made to providers where they or family members have financial control.
HB 2211 provides financial compensation to cities and counties with STAR bond districts established before December 31, 2022, for lost food sales tax revenue. The bill creates a "STAR bonds food sales tax revenue replacement fund" to pay districts the difference between actual tax revenue collected and what would have been collected at a 6.5% state sales tax rate on food sales. Starting in July 2025, the state will calculate and transfer these funds monthly from the general fund to the replacement fund, which then pays eligible districts. Payments continue until all bond obligations for the district are fully covered, after which no further payments are made.
