Kansas House Bill HB2599

Kansas 2025-2026 Regular Session

• Introduced: 1/29/26
• Refer: 1/29/26
• Report Pass: 3/11/26

Caption

Exempting minor-owned businesses from paying sales tax on the first $10,000 of sales from tangible personal property sold each calendar year and from local taxes, licenses, permits and other local government permissions.

Summary

HB2599 creates the “Kansas lemonade stand law” and establishes a tax and regulatory exemption for certain businesses owned and operated only by minors under 18. A qualifying minor-owned business must operate only on an intermittent or seasonal basis and have gross annual sales of no more than $10,000. For these businesses, the first $10,000 of sales of tangible personal property each calendar year would be exempt from Kansas retailers’ sales tax. The bill also prohibits cities, counties, and townships from imposing local taxes or fees on these businesses or requiring licenses, permits, or other government permissions for their operation. The bill expressly treats a minor-owned business’s website, online marketplace listing, or other digital storefront as intermittent or seasonal for purposes of the exemption. The act would take effect upon publication in the statute book.

Impact

HB2599 would amend the practical reach of the Kansas retailers’ sales tax act by carving out a new exemption for small, minor-run businesses and would limit local government authority to tax, license, or otherwise regulate those businesses through local permissions. It would affect state sales tax administration for qualifying sales of tangible personal property and would preempt local ordinances or fee structures that might otherwise apply to small youth-run enterprises.

Sentiment

No committee testimony or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the materials supplied. Based on the bill text and caption, the measure appears framed as a pro-small-business, youth-friendly policy intended to encourage entrepreneurship among minors, with a generally favorable public-facing tone.

Contention

The main points of potential contention are the bill’s preemption of local authority and the breadth of the exemption’s definition. Local governments may object to losing the ability to impose fees, licenses, or permits on minor-owned businesses, while tax administrators may scrutinize how to verify ownership, intermittent or seasonal operation, and the $10,000 sales cap. The inclusion of digital storefronts as intermittent or seasonal could also raise questions about how online sales are counted and enforced.