KS HB2318

Future income tax and privilege tax rate reductions are contingent on state general fund collections exceeding inflation-adjusted FY 2024 base revenues ($5,969,395,529) and the budget stabilization fund maintaining at least 20% of the prior year's state tax receipts

Beginning August 15, 2025, the director of the budget must annually certify whether revenue conditions are met; if so, the secretary of revenue calculates and publishes automatic tax rate reductions

Individual income tax rates would decrease proportionally until reaching a floor of 4%, starting with both brackets and then reducing only the higher bracket once the lower bracket hits the floor

Corporate income tax surtax would decrease until combined rates reach 4%; privilege taxes on banks and financial institutions would receive corresponding reductions to floors of 2.6% (K.S.A. 79-1107) and 2.62% (K.S.A. 79-1108)

Rate reductions, once triggered, remain permanent unless further reduced by subsequent qualifying years of excess revenue