Budget & Taxes (Small Business)

HB 2599, known as the "Kansas lemonade stand law," exempts minor-owned businesses (operated solely by individuals under 18) from paying state sales tax and local taxes, licenses, or permits on the first $10,000 of annual sales of goods. It specifically applies to small, seasonal or intermittent businesses like lemonade stands, where minors make under $10,000 yearly in gross sales. The law removes both state-level sales tax obligations and local government fees for qualifying businesses. This policy directly supports young entrepreneurs by reducing startup costs for small-scale, temporary ventures.

HB 2276 creates a Kansas income tax credit for small businesses that buy advertising from qualifying local news organizations. Eligible small businesses (employing fewer than 50 full-time Kansas workers) receive a credit equal to 50% of their first-year advertising costs (capped at $5,000) and 25% for subsequent years (capped at $2,500 annually). The credit requires certification from both the business and the news organization (which must be a Kansas Press Association or Kansas Broadcasters Association member producing original public-interest content). Unused credits can be carried forward for up to ten years but are not refundable.