KS SB259

Future tax rate decreases for income taxes and privilege taxes would only occur when state general fund collections exceed inflation-adjusted base year revenues, with fiscal year 2024 revenues of $10,003,833,599 serving as the baseline

Starting August 15, 2025, the director of the budget must annually determine whether collections exceed the inflation-adjusted threshold and certify any excess to the secretary of revenue

Individual income tax rates would decrease proportionally until the lower rate reaches 4.5%, then only the higher rate would decrease until it also reaches 4.5%, at which point the corporate surtax rate under K.S.A. 79-32,110(c) would be reduced to a combined 4.5%

Privilege tax rates for national banks and state banks would decrease until combined normal and surtax rates reach 2.82%, while trust companies and savings and loan associations would decrease to a combined rate of 2.9%

Rate reductions calculated from excess revenues would be rounded to the nearest 0.01% and remain in effect unless further reduced through subsequent excess revenue certifications