This bill proposes to amend the Kansas Constitution to completely ban the state and all local governments from levying any property taxes. The measure would directly affect all property owners in Kansas by eliminating the legal authority to collect these taxes on real estate, personal property, and other taxable assets. If passed by the legislature and approved by voters, it would remove the existing system that currently classifies and assesses different types of property at specific percentages of their value.
HB 2757 repeals multiple existing Kansas income tax credits, including those for agritourism liability insurance, alternative fuel, disabled access, and aviation-related employment. It extends the tax credit for angel investors (investors in early-stage businesses) and modifies the high-performance tax credit program to offer expanded options for rural businesses, including adjusted wage requirements. The bill directly affects businesses and investors who previously claimed these credits, particularly agritourism operators, angel investors, and qualifying rural employers. Key changes include eliminating 10+ specific credits while extending benefits for angel investors and providing new flexibility for rural business tax credit usage.
HB 2773 modifies Kansas' business income tax apportionment rules for manufacturers. It creates a new election option allowing qualifying manufacturers - defined as those with payroll exceeding 200% of their average property and sales factors - to use a simplified apportionment method (property plus sales factors divided by two) instead of the standard three-factor method. This applies to all qualifying manufacturers, not exclusively alcoholic liquor producers as the title suggests. Taxpayers electing this method must file a statement with their return and are bound for ten years. The bill amends K.S.A. 2025 Supp. 79-3279 to add this provision, affecting businesses meeting the payroll threshold.
HB 2775 creates a three-year exemption from Kansas' 8% severance tax for all new oil and gas wells. This directly affects operators who drill new wells by eliminating their initial tax burden on production. The exemption applies to the standard 8% tax rate on the gross value of oil or gas produced, covering all new wells regardless of size or location during their first three years of operation. It amends existing tax law (K.S.A. 79-4217) to add this temporary relief for new well operators.
HB 2442 changes how alcohol manufacturers in Kansas calculate their state income tax. It allows these manufacturers to use a simplified "single sales factor" method - where their tax liability is based solely on sales within Kansas - instead of the standard three-factor method (which considers property, payroll, and sales). This change directly affects alcohol manufacturers by potentially lowering their taxable income in Kansas, as it removes the need to factor in property and payroll costs. The bill amends Kansas tax law to add this option for qualifying alcohol manufacturers, making the tax calculation simpler for them.
HB 2475 would amend Kansas' sales tax law to grant a sales tax exemption specifically for purchases made by "radical life inc," adding this organization to the existing list of entities eligible for tax exemptions under K.S.A. 79-3606(b). This provision directly affects "radical life inc" by exempting its qualifying purchases from state sales tax, aligning them with exemptions previously available to hospitals, schools, and other nonprofits. The bill modifies the tax code to explicitly include "radical life inc" in the exemption category for purchases used exclusively for the organization's purposes. This is a targeted policy change affecting one specific entity, not a broad legislative shift. The bill remains pending in the Taxation Committee as of its introduction date.
HB 2458 requires local governments in Kansas (such as cities, counties, and townships) to obtain voter approval or elected body authorization before levying property taxes or issuing bonds, except for certain existing tax types. The bill mandates that any new tax levy or bond issuance must be approved by a majority of voters in a special election or by the elected governing body. Key provisions amend existing laws to add this approval requirement, ensuring local tax and debt decisions require direct public input. This directly affects all taxing jurisdictions seeking to raise funds through property taxes or bonds. The bill does not change current tax types covered under K.S.A. 72-5142.
HB 2599, known as the "Kansas lemonade stand law," exempts minor-owned businesses (operated solely by individuals under 18) from paying state sales tax and local taxes, licenses, or permits on the first $10,000 of annual sales of goods. It specifically applies to small, seasonal or intermittent businesses like lemonade stands, where minors make under $10,000 yearly in gross sales. The law removes both state-level sales tax obligations and local government fees for qualifying businesses. This policy directly supports young entrepreneurs by reducing startup costs for small-scale, temporary ventures.
SB 320 expands Kansas property tax exemptions to include commercial and industrial machinery and equipment acquired or transported into the state on or before June 30, 2006. It directly affects businesses owning qualifying equipment that was added before this date for expansion or new business creation. The bill adds two new exemption categories to existing tax law: (1) equipment acquired by 2006 for bona fide business use, and (2) equipment transported into Kansas by 2006 for business expansion or new ventures. These exemptions apply to all taxable years starting after December 31, 2025, and exclude equipment acquired solely to avoid taxes. The change aims to provide tax relief for qualifying pre-2006 business investments.
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.
