New Kansas Laws Effective July 1st, 2025
Senate Bill 35 discontinues the state property tax levies for the Kansas educational building fund and the state institutions building fund and instead finances these expenses with revenue from the state general fund.
Senate Bill 269 which was enacted in April 2025 over the governor’s veto, creates a trigger-based system to reduce tax rates when individual and corporate income tax revenues exceed an inflation-adjusted FY 2024 baseline and the Budget Stabilization Fund balance is at 15 percent of the prior year’s general fund tax collections. The individual income tax rate will be reduced first, until it reaches a flat rate of 4 percent, followed by reductions to the corporate income tax surtax until the normal tax and surtax reach a combined rate of 4 percent. Finally, the privilege tax will be reduced until the combined normal tax and surtax amount is 2.6 percent for banks and 2.62 percent for trusts and savings and loan associations The first year an individual income tax cut may be triggered un this law is tax year 2026. So, nothing has changed as of today, but we could see lower rates in 2026.