Kansas taxation committee hears bill to tie future income-tax cuts to revenue "growth trigger"

Kansas House Committee on Taxation members heard proponent and opponent testimony on House Bill 23‑18 on Feb. 25, a proposal that would automatically reduce state income‑tax rates when inflation‑adjusted general revenue collections exceed a fixed baseline.

The bill would require the director of the budget to determine on Aug. 15 of each year whether adjusted general revenue fund collections exceed a statutory baseline adjusted for inflation; any excess above that inflation adjustment would be converted under a formula into reductions in the personal income‑tax rate until a single personal rate of 4.5 percent is reached, and thereafter would reduce the corporate surtax until the combined corporate rate also equals 4.5 percent. Committee members heard competing arguments about the effects on state competitiveness, budgets and local property taxes.

Proponents said the measure would create a predictable, data‑driven path for reducing tax rates when revenues permit and would help Kansas compete with neighboring states. "We appreciate the opportunity to be here today in support of House Bill 23‑18," said Eric Stafford, vice president of government affairs for the Kansas Chamber. Stafford described the bill as modeled on growth‑trigger laws in states such as North Carolina and West Virginia and said the mechanism would use excess revenue above an inflation‑adjusted baseline to “buy down the rate.” Tanner Temple, deputy state director for…