Budget & Taxes (Income Tax)

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 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.

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 39 establishes gold and silver coins and bullion as legal tender in Kansas for paying debts and taxes. It exempts transactions involving these precious metals (including sales, purchases, and exchanges) from state income tax, and allows taxpayers to subtract gains from such sales when calculating Kansas income tax. The bill directly affects Kansas residents and businesses dealing with gold or silver, by removing tax liability on these transactions (with exceptions for retirement account distributions). Key mechanisms include defining "specie" (gold/silver coins/bullion), prohibiting taxation of specie exchanges, and amending the state tax code to include a subtraction for specie sale gains. The bill does not change existing tax treatment for retirement accounts or alter the legal tender status of paper currency.