Kansas 2025-2026 Regular Session

Kansas Senate Bill SB109

Introduced
1/29/25  

Caption

Providing a remittance credit to retailers for the collection of sales and compensating use tax.

Impact

If enacted, SB109 will significantly alter the way retailers handle sales tax remittances in Kansas. The credit allowance is designed not only to lessen financial pressure on retailers but also to encourage enhanced compliance with tax regulations. This could ultimately result in better revenue collection for the state while providing a direct incentive for retailers to engage more actively in tax remittances, which might improve the overall economic environment in the state.

Summary

Senate Bill 109 introduces a new framework for the collection and remittance of sales and compensating use tax in Kansas by providing a tax credit to retailers. Under this bill, retailers will be allowed to retain 1.5% of their sales and compensating use tax remittances, up to a maximum credit of $300 per month. This legislative move aims to support local businesses by easing their tax burden, thereby promoting economic stability in the retail sector amidst ongoing fiscal challenges.

Contention

While the bill's intent is to provide relief to retailers, it may face scrutiny regarding its impact on the state budget and broader public services funding. Some lawmakers may express concerns that the tax credit could lead to a reduction in the overall tax revenue, raising questions about how the state will compensate for these losses. Additionally, discussions surrounding equity in tax legislation may arise, questioning whether such credits disproportionately benefit larger retailers at the expense of smaller businesses.

Notable_points

The bill's structure highlights a growing trend among states to offer tax credits as a means of supporting local businesses. It reflects an understanding of the vital role that retail plays in the state's economy. The success of SB109 will depend on careful monitoring and assessment of its effectiveness in promoting business sustainability while maintaining essential revenue streams for state funding.

Companion Bills

No companion bills found.

Previously Filed As

KS SB8

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

KS SB6

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

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 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 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 HB2002

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

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.

Similar Bills

No similar bills found.