Kansas 2025-2026 Regular Session

Kansas House Bill HB2775

Introduced
2/12/26  

Caption

Providing for a three-year exemption from severance tax for new oil and gas wells.

Impact

The bill seeks to impact state laws by amending K.S.A. 79-4217, which governs the severance tax on the extraction of coal, oil, and gas. By granting this new exemption, the legislation could potentially lead to increased drilling activity and investment in the state's oil and gas sector. Proponents of the bill argue that this initiative will promote job creation and economic development in areas where energy production is prevalent. The measure is seen as a step towards making Kansas a more attractive location for energy production, especially for new operators entering the market.

Summary

House Bill 2775 aims to amend existing tax legislation regarding the severance tax imposed on the production of oil and gas in Kansas. The main provision of the bill is the introduction of a three-year exemption from severance tax for new oil and gas wells. This exemption is designed to incentivize the development and production of new wells, particularly in a state that has significant oil and gas resources. The exemption applies only when a well first produces oil or gas and is intended to help stimulate growth within the energy sector by reducing the upfront financial burden on producers.

Contention

Notable points of contention include concerns about the long-term sustainability of such tax exemptions. Critics argue that while the initial benefits may stimulate production, allowing exemptions could erode the state's tax base over time, especially if a significant number of wells qualify for tax relief. Additionally, there are concerns that the bill may disproportionately benefit larger companies with the resources to invest in new wells, potentially sidelining smaller, independent operators. The balance between encouraging production and maintaining a fair tax environment is likely to be a major topic of discussion as stakeholders assess the bill's implications.

Companion Bills

No companion bills found.

Previously Filed As

KS SB6

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

KS SB8

Exempting the sale of firearms, firearms accessories, ammunition, firearm safes and firearm safety devices from the retatilers' sales 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 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 HB2004

Authorizing counties to propose an earnings tax for ballot question.

KS SB5

Authorizing counties to impose an earnings 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 HB2002

Expanding medical assistance eligibility and enacting the cutting healthcare costs for all Kansans act.

KS SB7

Authorizing federally licensed firearm dealers, in addition to county sheriffs, to receive applications for concealed carry licenses and forward such applications to the attorney general, prohibiting sheriffs from assessing any fee related to application services and allowing dealers to assess a fee related to application services not to exceed $20.

Similar Bills

No similar bills found.