All Roll Calls
Yes: 630 • No: 8
KansasHB 22312025–2026 Regular SessionHouseWALLET
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.
Sponsored By: Committee on Taxation
Signed by Governor
senate committee on assessment and taxationhouse committee on taxation
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 6 benefits, 0 costs, 5 mixed.
Extra tax break for head-of-household filers
Starting with tax year 2024, federal head-of-household filers get an extra $2,320 Kansas personal exemption each year. This lowers income subject to Kansas tax. It is not a $2,320 payment or tax credit.
Revenue growth triggers corporate tax cuts
The law ties a normal corporate income tax rate cut to fiscal year 2028 receipts exceeding the prior year's. Officials calculate the cut and round it down to the nearest 0.1 percentage point. The Secretary of Revenue publishes the rate by October 1, 2028, for tax years beginning after December 31, 2028. A reduced rate stays in place unless further reduced by law.
Businesses shift to sales-based Kansas taxes
For tax years beginning on or after January 1, 2027, Kansas generally assigns business income using sales alone. Prior two-factor electors can use this method; corporate taxpayers cannot use Article IV of the Multistate Tax Compact instead. Nonphysical sales follow market-based rules: service delivery, intangible use, borrower or secured-property location, and dividend payer's business home. Receipts that cannot be assigned or reasonably estimated are left out of the sales-factor denominator. Communications providers can keep older sourcing rules; these changes can raise or lower a business's Kansas tax.
Property tax relief for recreational equipment
Beginning January 1, 2026, all watercraft are exempt from Kansas property taxes; assessments continue through December 31, 2025. For tax years beginning in 2026, exemptions also cover off-road vehicles not operated on highways and specified motorized or electric-assisted bicycles, scooters, and mobility devices. Trailers qualify when their gross weight is 15,000 pounds or less and use is exclusively personal, without producing income. Watercraft trailers designed for launching, retrieving, transporting, and storing boats also qualify, along with watercraft motors.
Simpler approval for specific property exemptions
The law simplifies exemption requests under Kansas statutes 79-201g and 82a-409 not already filed with the state tax appeals board by the law's effective date. When the county appraiser recommends approval, the exemption is granted in the recommended amount without that board filing. The county clerk or assessor must make the corresponding annual adjustment to the property's taxes. This changes processing, not the exemption amount.
Larger tax exemption for disabled veterans
Starting with tax year 2025, qualifying disabled veterans get a $2,320 additional Kansas exemption, up from $2,250. Veterans must have an honorable discharge and VA certification of disability compensation at the 100% rate. The permanent disability must stem from military action, an accident, or disease contracted during active service. The $70 increase lowers taxable income; it is not a $70 payment.
Transition deductions for eligible public companies
Eligible public companies and affiliates get deductions for specified deferred-tax effects from the sales-only and financial-institution apportionment changes. Eligibility requires public-company status or inclusion in its financial statements under generally accepted accounting principles as of July 1, 2025. Covered effects are increased net deferred tax liabilities, decreased net deferred tax assets, or assets becoming liabilities. Companies must file their total claim by July 1, 2027. They deduct one-tenth annually before income apportionment for 10 tax years, starting with the first beginning on or after January 1, 2035; unused amounts carry forward.
New income rules for homeowner refunds
Starting with tax year 2025, homestead refund claims count all household members' Kansas adjusted gross income during their household membership. This can change who qualifies. Claimants must meet the age-65, disabled-veteran, or qualifying-surviving-spouse requirement and have lived in Kansas throughout the preceding year. The initial $50,000 household income limit receives annual cost-of-living adjustments after 2022. The home's base-year appraised value must be $350,000 or less.
Alcohol makers use three-part tax formula
Alcoholic liquor manufacturers selling to distributors must assign Kansas business income using property, payroll, and sales. The formula averages those three factors. This special rule can raise or lower a manufacturer's Kansas tax, depending on its operations.
Financial institutions switch to receipts-only taxes
For tax years beginning on or after January 1, 2027, multistate financial institutions assign Kansas business income using receipts alone. This replaces the formula averaging receipts, property, and payroll. It applies when business activity is taxable both inside and outside Kansas. The change can raise or lower an institution's Kansas tax.
Utilities exclude certain related-company sales
Certain electric and natural gas public utilities must exclude sales made to them by their unitary business group's members. The exclusion changes their sales-factor tax calculation. It does not apply to cooperatives or utilities owned by cooperatives. The tax effect can vary; the law does not establish any change in customer prices.
Sponsors & Cosponsors
Sponsor
Committee on Taxation
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/23/2026
Yea: 118 Nay: 4
Yes: 118 • No: 4
House vote • 4/23/2026
Yea: 40 Nay: 0
Yes: 40 • No: 0
House vote • 4/23/2026
Yea: 40 Nay: 0
Yes: 40 • No: 0
House vote • 4/23/2026
Yea: 117 Nay: 0
Yes: 117 • No: 0
House vote • 4/11/2025
Conference Committee Report was adopted
Yes: 118 • No: 4
Senate vote • 4/10/2025
Conference Committee Report was adopted
Yes: 40 • No: 0
Senate vote • 3/19/2025
Emergency Final Action - Passed as amended
Yes: 40 • No: 0
House vote • 2/26/2025
Final Action - Passed as amended
Yes: 117 • No: 0
Actions Timeline
Approved by Governor on Thursday, April 24, 2025
4/24/2025HouseMotion to suspend Joint Rule 4 (k) to allow consideration adopted
4/11/2025HouseConference Committee Report was adopted; Yea 118, Nay 4, Absent 3
4/11/2025HouseReengrossed on Monday, April 14, 2025
4/11/2025HouseEnrolled and presented to Governor on Friday, April 18, 2025
4/11/2025HouseConference committee report now available
4/10/2025SenateMotion to suspend Joint Rule 4 (k) to allow consideration adopted
4/10/2025SenateConference Committee Report was adopted; Yea 40, Nay 0
4/10/2025SenateNonconcurred with amendments; Conference Committee requested; appointed Rep. Adam Smith, Rep. Carl Turner and Rep. Tom Sawyer
3/20/2025HouseMotion to accede adopted; Sen. Caryn Tyson, Sen. Virgil Peck and Sen. Ethan Corson appointed as conferees
3/20/2025SenateCommittee of the Whole - Committee Report be adopted
3/19/2025SenateCommittee of the Whole - Be passed as amended
3/19/2025SenateEmergency Final Action - Passed as amended; Yea 40, Nay 0
3/19/2025SenateCommittee Report recommending bill be passed as amended by Senate Committee on Assessment and Taxation
3/13/2025SenateHearing: Monday, March 10, 2025, 9:30 AM — Room 548-S
3/10/2025SenateEngrossed on Tuesday, February 25, 2025
3/3/2025HouseReferred to Senate Committee on Assessment and Taxation
2/27/2025SenateFinal Action - Passed as amended; Yea 117, Nay 0, Absent 8
2/26/2025HouseReceived and Introduced
2/26/2025SenateCommittee of the Whole - Committee Report be adopted
2/25/2025HouseCommittee of the Whole - Be passed as amended
2/25/2025HouseCommittee Report recommending bill be passed as amended by House Committee on Taxation
2/13/2025HouseHearing: Monday, February 10, 2025, 3:30 PM — Room 346-S
2/10/2025HouseIntroduced
2/4/2025HouseReferred to House Committee on Taxation
2/4/2025House
Bill Text
As Amended by House Committee on Taxation
As Amended by Senate Committee on Assessment and Taxation
As Introduced
Enrolled
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