Budget & Taxes

HB 2773 modifies Kansas' business income tax apportionment rules for manufacturers. It creates a new election option allowing qualifying manufacturers - defined as those with payroll exceeding 200% of their average property and sales factors - to use a simplified apportionment method (property plus sales factors divided by two) instead of the standard three-factor method. This applies to all qualifying manufacturers, not exclusively alcoholic liquor producers as the title suggests. Taxpayers electing this method must file a statement with their return and are bound for ten years. The bill amends K.S.A. 2025 Supp. 79-3279 to add this provision, affecting businesses meeting the payroll threshold.

HB 2745 requires Kansas counties and cities to obtain voter approval before increasing property taxes above a set limit, directly affecting local governments seeking tax hikes beyond this threshold. It establishes a property tax relief fund and provides funding transfers to jurisdictions that keep tax increases within the new limit. The bill also creates a new property tax limit for budget planning and allows voters to challenge proposed increases by signing a petition with at least 10% of eligible voters within 30 days, which would force the local government to revert to the previous tax level.

This bill proposes a constitutional amendment to limit how much the assessed value of residential real property and mobile homes can increase each year in Kansas. The amendment would cap annual increases for these property types at 1.5% of their value, starting from January 1, 2027. This change directly affects homeowners and mobile home owners by restricting how their property tax bases can grow over time. The bill requires a two-thirds vote in both legislative chambers and would be submitted to voters for approval before taking effect.

HB 2466 extends Kansas's angel investor tax credit program expiration from 2026 to 2031, allowing eligible investors to claim tax credits for investments in qualified Kansas businesses through 2031. The bill directly affects angel investors who make cash investments in Kansas startups or small businesses and the businesses receiving those investments. It maintains the existing structure where investors can claim up to 50% of their investment as a tax credit, with annual limits (capping at $8 million in total credits per year for 2026-2031). The extension ensures the program remains active without altering credit rates or annual caps, providing continued incentive for early-stage business funding in Kansas.