All Roll Calls
Yes: 315 • No: 4
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: Sponsor information unavailable
Signed by Governor
assessment and taxationtaxation
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 7 benefits, 0 costs, 4 mixed.
Bigger exemption for 100% disabled veterans
Starting in 2025, veterans certified by the VA as 100% permanently, service‑connected disabled get an extra $2,320 Kansas exemption. You must have an honorable discharge and the VA certification. This reduces your Kansas taxable income each year.
Extra exemption for head-of-household filers
If your federal filing status is head of household, Kansas gives you an extra $2,320 exemption each year starting in 2024. This lowers your Kansas taxable income by $2,320.
Higher Kansas personal exemptions in 2024
For tax year 2024 and later, Kansas raises personal exemptions. Married filing jointly gets $18,320. Single, head of household, and married filing separately get $9,160. Each dependent adds $2,320. These amounts reduce your Kansas taxable income.
Deferred‑tax deduction for public companies
Publicly traded companies as of July 1, 2025 can deduct the aggregate increase in net deferred tax liability (or decrease in deferred tax asset) caused by Kansas switching to sales‑only apportionment. A statement claiming the total amount is due to the Secretary of Revenue by July 1, 2027. The deduction is split into 10 equal parts. The first part applies to the first tax year beginning on or after January 1, 2035, then one part each year for nine more years. Unused amounts can carry forward as allowed.
No property tax on boats in 2026
Beginning January 1, 2026, all watercraft are exempt from Kansas property tax. Human‑powered boats were already exempt. Before 2026, tax used fair market value times 11.5% in 2014 and 5% in 2015–2025, multiplied by the county average tax rate, with a $12 minimum. One trailer and any nonelectric motor counted as part of the taxable watercraft under those rules.
Corporate tax rate cut tied to 2028
At the end of FY2028, the Budget Director certifies corporate income tax receipts above the prior year. The Revenue Secretary then computes a cut to the normal corporate rate, rounded down to the nearest 0.1%. The department publishes the new rates by October 1, 2028. The new rates apply to tax years starting after December 31, 2028.
Homestead refunds for seniors and veterans
You can claim a homestead refund if you lived in Kansas all of last calendar year and are 65+ or a disabled veteran. A surviving spouse can keep benefits until remarriage. The refund equals your current homestead property tax minus your base‑year tax (base year is when you first qualified; if that was before 2021, base year is 2021). Starting in 2025, household income means the total Kansas adjusted gross income of everyone in your household. To qualify, household income must be $50,000 or less and your base‑year home value must be $350,000 or less. The income cap rises each year after 2022 by the federal cost‑of‑living adjustment. You cannot also get the homestead refund under K.S.A. 79‑4508 or the SAFESR credit for the same year. Refunds are rounded to the nearest $1.
Several old tax statutes repealed
The law repeals K.S.A. 79‑213, 79‑1129, 79‑3279, 79‑3287, 79‑4301, 79‑5501 and K.S.A. 2024 Supp. 79‑32,110, 79‑32,113, 79‑32,121 and 79‑4508a. These sections are removed from Kansas law and replaced by the updated rules in this act.
Sales-only tax apportionment starts 2027
For tax years starting January 1, 2027, Kansas uses a single sales (receipts) factor to apportion business income, including financial institutions. For sales other than tangible goods starting after December 31, 2026, Kansas uses market‑based sourcing: services to where delivered; interest by borrower or collateral location; dividends to the payor’s commercial domicile; and other rules for intangibles. Some communications providers may keep pre‑2027 assignment as allowed. For these years, certain taxpayers may not use Article IV of the multistate tax compact and must follow Kansas apportionment law. This shifts taxes based on where customers are, helping some firms and raising taxes for others.
No property tax on some personal items
Starting January 1, 2026, Kansas exempts certain personal items from property tax. This includes off‑road vehicles not driven on roads; motorized bicycles, e‑bikes, e‑scooters, electric personal assistive mobility devices, and motorized wheelchairs; trailers up to 15,000 pounds used only for personal use; and marine equipment like boat trailers and motors. These items are also added to the list excluded from certain K.S.A. 79‑213 procedures.
Multistate tax rules, audits, and arbitration
Kansas participates in the Multistate Tax Commission. The commission can draft uniform tax rules and forms after a public hearing; states then decide whether to adopt them. States can ask the commission to run multistate audits and must pay the actual audit costs. The commission can set up binding arbitration for apportionment disputes when adopted. Member states share the commission’s budget by formula.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
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 • 4/23/2026
Yea: 118 Nay: 4
Yes: 118 • No: 4
Actions Timeline
Motion to suspend Joint Rule 4 (k) to allow consideration adopted;
4/11/2025HouseConference Committee Report was adopted; Yea: 118 Nay: 4
4/11/2025HouseReengrossed on Monday, April 14, 2025
4/11/2025HouseEnrolled and presented to Governor on Friday, April 18, 2025
4/11/2025HouseApproved by Governor on Thursday, April 24, 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 Representative Smith, A. , Representative Turner and Representative Sawyer as conferees
3/20/2025HouseMotion to accede adopted; Senator Tyson, Senator Peck and Senator 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 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 Committee on Assessment and Taxation
2/27/2025SenateFinal Action - Passed as amended; Yea: 117 Nay: 0
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 Committee on Taxation
2/13/2025HouseHearing: Monday, February 10, 2025, 3:30 PM Room 346-S
2/10/2025HouseIntroduced
2/4/2025HouseReferred to Committee on Taxation
2/4/2025House
Bill Text
As Amended by House Committee
As Amended by Senate Committee
As introduced
Enrolled
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