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KS HB2336
Bill
Status
3/24/2025
Primary Sponsor
Taxation
Click for details
AI Summary
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Transitions Kansas business income apportionment from the traditional three-factor formula (property, payroll, sales) to a single sales factor method for tax years beginning January 1, 2027, with an optional election available starting January 1, 2025
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Establishes a deferred tax impact deduction for publicly traded companies to offset increases in net deferred tax liability resulting from the single sales factor transition, calculated as 1/10 of the impact amount annually for 10 years beginning January 1, 2035
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Creates a mechanism for automatic corporate income tax rate reductions starting fiscal year 2028, based on excess corporate tax revenue above the prior year, rounded down to the nearest 0.1%
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Requires manufacturers of alcoholic liquor who sell to distributors to continue using the three-factor apportionment formula rather than single sales factor
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Excludes electric and natural gas public utilities from consolidated/unitary combined returns and removes sales to affiliated utilities from the sales factor for unitary business groups
Legislative Description
Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor, the decrease in corporate income tax rates determining when sales other than tangible personal property are made in the state and excluding sales of a unitary business group of electric and natural gas public utilities.
Last Action
Senate Hearing: Wednesday, February 25, 2026, 9:30 AM Room 548-S
2/25/2026