SB 181 limits annual spending growth from Kansas' state general fund by setting a yearly cap based on inflation (CPI) and population changes. It requires the state treasurer to certify this cap each year by September 1, using the previous year's total expenditures multiplied by the Midwest CPI plus population growth percentage. The bill mandates that all legislative budget measures and the governor's proposed budget for the next fiscal year must not exceed this certified cap. This directly affects the legislature when drafting budget bills, the governor when submitting budget reports, and the state treasurer's certification process under amended K.S.A. 75-3721.
HB 2336 changes how Kansas taxes business income. Starting in 2028, most businesses will use a single sales factor (based on where sales occur) to determine taxable income, replacing the current method that used sales, property, and payroll. Businesses can choose this single sales factor for 2025-2027, and financial institutions will use the sales factor for apportionment. The bill also automatically lowers corporate tax rates each year if tax receipts exceed the prior year's amount, with the reduction calculated and applied. Additionally, it excludes sales by electric and gas utility groups from certain tax rules.
SB 191 limits municipal utility boards in Kansas from adding extra fees, taxes, or charges to customer bills beyond 15% of the base service cost for water, sewer, and electricity. It directly affects residential and business utility customers by capping these additional charges, which often include local taxes or administrative fees. The bill amends existing statutes to enforce this 15% cap on all "fees, taxes, payment in lieu of taxes, or other charges" beyond the core utility service fees. This policy change aims to prevent excessive billing beyond the actual cost of service, without altering how base utility rates are set.
SB 26 would exempt specific purchases made by bowling centers in Kansas from the state's sales tax. This means bowling centers would not pay sales tax on qualifying items they buy for their operations, such as equipment or supplies. The bill amends Kansas' sales tax law (K.S.A. 2024 Supp. 79-3606) to add bowling centers to the list of businesses eligible for this exemption. This change directly affects bowling centers by lowering their operating costs for qualifying purchases.
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.
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.
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 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 2396 allows Kansas property taxpayers to challenge proposed property tax increases that exceed a set limit by submitting a protest petition. The limit is based on the previous year's tax revenue plus a small inflation adjustment and specific increases for new construction or bond payments. If 10% of voters from the last presidential election sign the petition within 30 days, the taxing jurisdiction (like a city or county) must reduce the tax increase to the limit. County clerks must notify taxpayers of the proposed increase and protest process, with costs shared by the taxing jurisdictions.
