Kansas 2023-2024 Regular Session

Kansas House Bill HB2529

Introduced
1/18/24  
Refer
1/18/24  

Caption

Decreasing the individual income tax rates.

Impact

The bill's impact on state laws involves an overhaul of the income tax structure as it pertains to individuals. By decreasing the tax burden, proponents argue that it will increase disposable income for residents, potentially leading to greater consumer spending and increased economic growth within the state. Additionally, the reduction in tax rates is positioned as a strategic move in response to national and regional competition for residents, especially among neighboring states with more favorable tax rates. However, this change would also necessitate a reevaluation of state revenue projections and budget planning, given that lower tax rates could lead to reduced income for state services unless offset by increases in other revenues or cuts to expenditures.

Summary

House Bill 2529 proposes a decrease in individual income tax rates in Kansas. The legislation aims to amend existing tax laws to lower the tax rates applied to residents, particularly aiming at making the tax system more favorable for individuals with various income brackets. The bill outlines specific percentage reductions for different ranges of taxable income, thereby adjusting the overall burden of income tax on residents. This proposal is part of a broader effort to stimulate economic activity and improve the state's fiscal climate by making it more attractive for individuals to reside and work in Kansas.

Contention

Notably, there are points of contention surrounding HB2529. Critics of the bill, particularly from opposing political factions, argue that the reduction in tax rates could exacerbate funding challenges for vital public services, such as education and healthcare. Concerns have been raised about the sustainability of funding for these essential services if the tax cuts lead to significant decreases in overall state revenue. There is a fear that while the bill may provide immediate financial relief to some taxpayers, it could result in long-term fiscal instability for the state, as well as an uneven benefit across different income groups.

Companion Bills

No companion bills found.

Previously Filed As

KS SB283

Decreasing individual income tax rates, discontinuing tax credits of the high performance incentive program and the Kansas affordable housing tax credit act, discontinuing payroll withholding tax benefits of the promoting employment across Kansas act, discontinuing the crediting of certain amounts to the job creation program fund and repealing certain tax credits.

KS SB259

Providing that future personal and corporate income tax rate and privilege tax rate decreases be contingent on exceeding tax receipt revenues.

KS HB2318

Providing that future income and privilege tax rate decreases be contingent on exceeding tax receipt revenues.

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 SB269

Providing that future income tax and privilege tax rate decreases be contingent on exceeding revenue estimates and retaining a certain amount in the budget stabilization fund.

KS HB2336

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.

KS HB2231

Providing an additional personal exemption for head of household tax filers and increasing the personal exemption for certain disabled veterans for purposes of income tax, modifying the definition of household income related to increased property tax homestead refund claims, 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, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers.

KS HB2757

Repealing or discontinuing certain income tax credit incentives, extending the income tax credit for angel investors and aviation-related employment and providing expanded options in the high performance tax credit program for tax credit transfers.

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 HB2636

individual income tax; rate; increase

Similar Bills

No similar bills found.