Kansas 2025-2026 Regular Session

Kansas House Bill HB2643

Introduced
2/3/26  

Caption

Providing countywide retailers' sales tax authority for Butler county for the purpose of providing property tax relief.

Summary

HB 2643 revises Kansas law governing city and county retailers’ sales taxes, with the central policy change being new countywide sales tax authority for Butler County to fund property tax relief. The bill allows the Butler County Commission to place before voters a countywide retailers’ sales tax of 0.25%, 0.5%, 0.75%, or 1%, with revenue dedicated to reducing property taxes and the tax expiring after five years unless renewed by another vote. The bill also expressly authorizes Butler County to use a countywide sales tax for public safety capital projects and bridge and roadway construction projects, and it updates the list of counties with special-purpose countywide sales tax authority for a wide range of local projects. Beyond Butler County, the bill amends the general county and city sales tax statutes to reflect numerous county-specific exceptions, including authority for certain counties to levy sales taxes for courthouses, jails, law enforcement centers, roads, bridges, health care services, economic development, recreation, public infrastructure, and other local facilities. It also adjusts maximum rates and duration rules for several counties, clarifies voter-approval and petition procedures, and preserves the Department of Revenue’s role in administering and collecting local sales taxes. The bill further revises how countywide sales tax revenue is apportioned between counties and cities, including special apportionment rules for certain counties and provisions allowing some counties to retain all revenue for pledged purposes. The bill’s impact on state law is substantial but targeted: it amends K.S.A. 12-187, 12-189, and 12-192, expands or modifies local taxing authority for many named counties, and changes the statutory framework for how local sales tax rates are set, approved, collected, and distributed. For Butler County specifically, it creates a new mechanism to seek voter approval for a sales tax intended to offset property taxes, which could shift some local funding burden from property owners to sales-tax payers. For cities and counties already using these taxes, the bill preserves existing authority while adding or refining project-specific uses and revenue-retention rules. Because no committee transcripts or recorded votes were provided, there is no documented debate or formal vote history to gauge legislative sentiment. Based on the bill text and caption, the measure appears to be locally driven and generally supportive of county financing needs, especially in Butler County, where the stated goal is property tax relief. The overall tone of the bill is pragmatic and permissive, giving local governments more tools to finance infrastructure and public services through voter-approved sales taxes. The main point of contention likely concerns tax policy tradeoffs: supporters may favor the property tax relief and local project funding, while opponents may object to expanding sales taxes, which can be regressive and increase consumer costs. Another likely issue is the breadth of county-specific exceptions, which can raise questions about fairness, complexity, and whether the Legislature should continue creating tailored tax rules for individual counties rather than a more uniform statewide framework.

Impact

HB 2643 amends Kansas statutes governing city and county retailers’ sales taxes, especially K.S.A. 12-187, 12-189, and 12-192. It adds or revises county-specific authority for local sales taxes, including a new Butler County option for property tax relief and additional or modified authority for public safety, roads, bridges, health care, infrastructure, and other local projects. The bill also changes rate caps, duration limits, election procedures, and revenue apportionment rules for various counties, while keeping the Department of Revenue responsible for administration and collection.

Sentiment

No committee discussion or vote record was provided, so there is no direct evidence of support or opposition from hearings or floor action. From the bill’s structure and caption, the measure appears to be locally requested and policy-oriented, with a generally favorable posture toward giving counties more financing tools. The strongest apparent support would come from Butler County officials seeking property tax relief and from counties wanting dedicated revenue for local capital and service needs.

Contention

The likely contention is between supporters of local tax authority and opponents of higher sales taxes. Supporters would emphasize property tax relief, infrastructure funding, and voter-approved local control; critics may argue that sales taxes are regressive, broaden the tax burden, and add complexity through county-by-county exceptions. Another possible point of debate is the bill’s extensive list of special county provisions, which may be viewed as uneven treatment across counties and as making the tax code more fragmented.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2004

Authorizing counties to propose an earnings tax for ballot question.

KS SB5

Authorizing counties to impose an earnings tax.

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 HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS SB6

Providing a sales tax exemption for sales of electricity to residential premises by municipally owned or operated utilities.

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 SB8

Exempting the sale of firearms, firearms accessories, ammunition, firearm safes and firearm safety devices from the retatilers' sales tax.

KS HB2001

Authorizing the secretary of commerce to enter into agreements with major professional sports franchises to establish STAR bond projects for a major professional sports complex, providing for additional revenue sources, expanding the powers and discretion of the secretary and making other changes to the STAR bonds financing act to facilitate such projects, limiting the secretary’s authority to approve such projects to one year unless extended by the legislative coordinating council, authorizing the Kansas development finance authority to issue STAR bonds for such projects, transferring funds under certain circumstances from the state gaming revenues fund to the attracting professional sports to Kansas fund for the fiscal year ending June 30, 2025, and, if approved by the legislative coordinating council, for the fiscal year ending June 30, 2026.

KS SCR1604

Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to limit property tax valuation increases for real property and personal property mobile homes.

KS SCR1603

Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to limit property tax valuation increases for residential property.

Similar Bills

No similar bills found.