Kansas HB 2336: Increasing bonding authority and simplifying the approval process for public airport construction and improvement projects under the surplus property and public airport authority act and increasing the cost threshold for state construction projects when the convening of a negotiating committee to obtain professional services is required.

Bill Text

{As Amended by House Committee of the Whole}
As Amended by House Committee
Session of 2025
HOUSE BILL No. 2336
By Committee on Taxation
Requested by Eric Stafford on behalf of the Kansas Chamber of Commerce
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AN ACT concerning taxation; relating to income and privilege taxes;
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; amending
K.S.A. 79-1129, 79-3271, 79-3279 and, 79-3287 {and 79-4301} and
K.S.A. 2024 Supp. 79-32,110 and 79-32,113 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) Commencing with {At the end of} fiscal year
2026 {2028}, the director of the budget, in consultation with the director of
legislative research, shall certify, at the end of each such fiscal year, the
amount of actual corporate income tax receipt revenues generated pursuant
to K.S.A. 79-32,110(c), and amendments thereto, that is in excess of the
prior fiscal year's corporate income tax receipts. The director of the budget
shall transmit such certification to the secretary of revenue. Upon receipt
of such certification, the secretary shall compute the reduction of the
corporate income tax rate pursuant to K.S.A. 79-32,110(c), and
amendments thereto. The certified amount shall be computed in dollars by
the secretary for a reduction rounded down to the nearest 0.1% in the
corporate income tax rate, if any, to go into effect for the next calendar
{tax} year that would reduce the corporate income tax rate in an amount
approximately equal to the amount computed by the secretary. The
secretary shall reduce the normal tax on corporations. Such rate reductions
shall remain in effect unless further reduced pursuant to law.
(b) The secretary shall publish by October 1, 2027 {2028}, the new
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HB 2336—Am. by HCW 2
income tax rates to take effect on January 1 {for all taxable years
commencing after December 31}, 2028.
Sec. 2. K.S.A. 79-1129 is hereby amended to read as follows: 79-
1129. (a) Except as otherwise specifically provided, a financial institution
whose business activity is taxable both within and without this state shall
allocate and apportion its net income as provided in this act. All items of
nonbusiness income, income which is not includable in the apportionable
income tax base, shall be allocated pursuant to the provisions of K.S.A.
79-3274 through 79-3278 and amendments thereto. A financial institution
organized under the laws of a foreign country, the commonwealth of
Puerto Rico, or a territory or possession of the United States whose
effectively connected income, as defined under the federal internal revenue
code, is taxable both within this state and within another state, other than
the state in which it is organized, shall allocate and apportion its net
income as provided in this act and its apportionment factors shall include
the part of its property, payroll and receipts that is related to its
apportionable income.
(b) (1) For taxable years {commencing} prior to January 1, 2028
2027, all business income shall be apportioned as follows:
(A) All business income, income which is includable in the
apportionable income tax base, shall be apportioned to this state by
multiplying such income by the apportionment percentage. The
apportionment percentage is determined by adding the taxpayer's receipts
factor, as described in K.S.A. 79-1130, and amendments thereto, property
factor, as described in K.S.A. 79-1131, and amendments thereto, and
payroll factor, as described in K.S.A. 79-1132, and amendments thereto,
together and dividing the sum by three. If one of the factors is missing, the
two remaining factors are added and the sum is divided by two. If two of
the factors are missing, the remaining factor is the apportionment
percentage. A factor is missing if both its numerator and denominator are
zero, but it is not missing merely because its numerator is zero.
(B) (i) For tax years commencing on or after January 1, 2025, and
ending before January 1, 2028, at the election of the taxpayer, all business
income that is includable in the apportionable income tax base, may be
apportioned to this state by the taxpayer's receipts factor, as described in
K.S.A. 79-1130, and amendments thereto.
(ii) An election under this subparagraph shall be made by including
a stateme