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KS HB2231
Bill
Status
4/11/2025
Primary Sponsor
Taxation
Click for details
AI Summary
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Head of household filers receive an additional $2,320 personal exemption for tax year 2024 and thereafter; disabled veterans at 100% disability rating receive an increased exemption of $2,320 (up from $2,250) starting tax year 2025
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Beginning January 1, 2027, business income apportionment shifts from the traditional three-factor formula (property, payroll, sales) to a single sales factor method for corporations and financial institutions
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Property tax exemptions established for watercraft (starting January 1, 2026), off-road vehicles not operated on highways, motorized bicycles, trailers under 15,000 pounds used exclusively for personal purposes, and marine equipment including watercraft trailers and motors
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Corporate income tax rates may be reduced starting after fiscal year 2028, with the secretary of revenue calculating reductions in 0.1% increments based on corporate tax revenue growth above the prior year
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Publicly traded companies affected by the single sales factor transition may claim a deferred tax impact deduction spread over 10 years beginning January 1, 2035, to offset increases in net deferred tax liabilities
Legislative Description
Providing an additional personal exemption for head of household tax filers and increasing the personal exemption for certain disabled veterans for purposes of income tax, modifying the definition of household income related to increased property tax homestead refund claims, providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, providing for the apportionment pursuant to the three-factor test of a manufacturer who sells alcoholic liquor, requiring the use of single sales factor pursuant to the multistate tax compact, establishing deductions from income when using the single sales factor and receipts factor, providing for the decrease in corporate income tax rates, determining when sales other than tangible personal property are made in the state, excluding sales of a unitary business group of electric and natural gas public utilities, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers.
Last Action
House Approved by Governor on Thursday, April 24, 2025
4/11/2025