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HB 2336KANSASSession 2025-2026State Billdead
Did Not Advance

Kansas HB 2336 Restructures Corporate Income Tax Apportionment and Rates

Original title: AN ACT concerning taxation; relating to income and privilege taxes; 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; 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; amending K.S.A. 79-1129, 79-3271, 79-3279 and 79-3287 and K.S.A. 2024 Supp. 79-32,110 and 79-32,113 and repealing the existing sections.

Last action · April 10, 2026: Died in Senate Committee

Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Kansas HB 2336 modifies corporate income and privilege taxes by transitioning to a for business income, establishing a mechanism for potential corporate income tax rate reductions based on revenue growth, and revising rules for financial institutions and public utilities.

Why it matters

The measure alters how multistate corporations and financial institutions calculate taxable income in Kansas and creates a framework for future adjustments to corporate tax rates, affecting corporate taxpayers, state revenue calculations, and specific public utilities.

Background
  • Kansas corporate income tax policy has historically involved debates over moving from a multi-factor apportionment formula to a single sales factor to incentivize in-state business investment. context
  • The Multistate Tax Compact is an agreement among states designed to facilitate proper determination of state and local tax liability of multistate taxpayers and promote uniformity. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Corporations

Corporations doing business in Kansas must transition to single sales factor apportionment and face potential tax rate reductions based on revenue growth.

Directly affected

Financial institutions

Financial institutions must update their income allocation and apportionment methods according to revised statutory timelines.

Directly affected

Electric and natural gas public utilities

Rate-regulated electric and natural gas public utilities are exempt from Kansas income tax and excluded from unitary combined returns.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

When does the single sales factor apportionment become mandatory for general taxpayers?
For tax years commencing on or after January 1, 2028, all general business income must be apportioned to Kansas by multiplying the business income by the sales factor.
How are electric and natural gas public utilities treated under the corporate income tax?
Electric and natural gas public utilities subject to state corporation commission rate regulation are exempt from the Kansas income tax, cannot be included in a consolidated or unitary combined return, and cannot collect Kansas income tax expenses as part of retail rates.

What else do you want to know?

News Coverage

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Where This Stands

This bill did not become law - Died in committee.

Procedural history

18 actions
  1. Apr 10, 2026Senate
    Died in Senate Committee
  2. Feb 25, 2026Senate
    Hearing: Wednesday, February 25, 2026, 9:30 AM — Room 548-S
  3. Mar 25, 2025SenateCommittee
    Referred to Senate Committee on Assessment and Taxation
  4. Mar 24, 2025SenateIntroduced
    Received and Introduced
  5. Mar 24, 2025House
    Engrossed on Sunday, March 23, 2025
  6. Mar 20, 2025House
    Committee of the Whole - Now working on
Show 12 earlier actions
  1. Mar 20, 2025HouseFloor
    Committee of the Whole - Committee Report be adopted
  2. Mar 20, 2025House
    Committee of the Whole - Motion to Amend - Offered by
  3. Mar 20, 2025HouseFloor
    Committee of the Whole - Amendment by was adopted
  4. Mar 20, 2025HouseFloor
    Committee of the Whole - Be passed as amended
  5. Mar 20, 2025HouseFloor
    Motion to advance to Emergency Final Action adopted
  6. Mar 20, 2025HouseFloor
    Emergency Final Action - Passed as amended
  7. Mar 19, 2025House
    Committee of the Whole - Now working on
  8. Mar 19, 2025HouseFloor
    Committee of the Whole - Passed over and retain a place on the calendar
  9. Mar 14, 2025HouseFloor
    Committee Report recommending bill be passed as amended by
  10. Feb 26, 2025House
    Hearing: Wednesday, February 26, 2025, 3:30 PM — Room 346-S
  11. Feb 7, 2025HouseIntroduced
    Introduced
  12. Feb 7, 2025HouseCommittee
    Referred to House Committee on Taxation

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Transition to Single Sales Factor Apportionment

The bill phases out the traditional three-factor apportionment formula in favor of a mandatory single sales factor for corporations by 2028.

House Committee on TaxationSecretary of Revenue

Connected Entities

State Corporation Commission, Kansas Department of Labor, House Committee on Taxation and 5 more
OrganizationState Corporation Commission“Regulates rates for electric and natural gas public utilities”Map →
OrganizationKansas Department of Labor“Receives quarterly wage reports and assigns NAICS subsectors”Map →
OrganizationHouse Committee on Taxation“Sponsoring committee of the bill”Map →
OrganizationMultistate Tax Commission“Established by the Multistate Tax Compact to study and recommend tax uniformity”Map →
OrganizationSecretary of Revenue“Computes reductions of corporate income tax rate and publishes new rates”Map →
OrganizationDirector of the Budget“Responsible for certifying actual corporate income tax receipt revenues”Map →
OrganizationDirector of Legislative Research“Consulted by the director of the budget for certification”Map →
OrganizationDepartment of Commerce“Certifies adverse economic impact and wage thresholds”Map →

Sources

Open source document

www.kslegislature.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 85)
  • Controversy65
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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