Kansas 2023-2024 Regular Session

Kansas House Bill HB2318

Introduced
2/7/23  
Refer
2/7/23  

Caption

Decreasing the state rate for sales and compensating use tax to 6.15%.

Impact

The reduction in the sales tax rate proposed by HB 2318 is expected to lower overall tax burdens on consumers, thus encouraging spending and economic activity. The state anticipates that by aligning its sales tax policy with consumer interests, it can foster a more robust marketplace. However, committees discussing the bill have raised concerns about the long-term implications for state funding, particularly regarding education and infrastructure, which rely heavily on sales tax revenue for financial support. The measure's supporters argue that the economic stimulation resulting from increased consumer spending could compensate for potential shortfalls in tax revenue.

Summary

House Bill 2318 aims to amend the existing sales and compensating use tax laws in Kansas by reducing the state tax rate from 6.5% to 6.15%. This change is proposed to provide financial relief to consumers and businesses, particularly in light of current economic conditions. The bill reinforces the government's commitment to maintain a favorable business environment while ensuring adequate tax revenue to fund essential state services. The bill establishes that this reduction in tax rate will take effect on January 1, 2023, potentially impacting the fiscal landscape of the state.

Contention

Debate surrounding HB 2318 has highlighted various points of contention. Proponents emphasize the necessity of lowering the tax rate to support residents and businesses, while opponents caution against possible adverse effects on state revenue, especially during budgetary constraints. This disagreement reflects broader discussions in the legislature about balancing tax relief with the need for sustainable funding for public services. The lawmakers involved will need to consider not only the economic forecasts but also the potential impacts on social services that depend on these tax revenues.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2277

Decreasing the state rate for sales and use taxes for prepared food and increasing the percent credited to the state highway fund from sales and use tax revenue collected.

KS SB2

Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS SB33

House Substitute for Substitute for SB 33 by Committee on Taxation - Providing that countywide retailers' sales tax is apportioned based on total assessed valuations of the county and cities within the county rather than property taxes levied.

KS HB2013

Discontinuing the imposition of sales tax on certain cable services.

KS SB148

Excluding from sales taxation the service of installing or applying tangible personal property for the reconstruction, restoration, remodeling, renovation, repair or replacement of a building or facility.

KS HB2162

Excluding from sales taxation the service of installing or applying tangible personal property for the reconstruction, restoration, remodeling, renovation, repair or replacement of a building or facility.

KS HB2011

Decreasing the rate of ad valorem tax imposed by a school district, increasing the extent of exemption for residential property from the statewide school levy and providing for certain transfers to the state school district finance fund.

KS HB2791

Imposing a 3% excise tax on all sports wagers, distributing the proceeds of such tax to the state school district finance fund and decreasing the statewide property tax levy for school districts by 1.5 mills.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS HB2784

Decreasing the rate of ad valorem tax imposed by a school district and providing for certain transfers to the state school district finance fund.

Similar Bills

No similar bills found.