The Kansas Legislature reconvened for a one day special session after Governor Laura Kelly called for new tax legislation.  Three major tax packages and a couple of smaller bills were vetoed by the Governor during the 2024 Legislative Session, to the frustration of Republican leaders.

The legislation passed today included compromise provisions to assure the Governor will sign this package.  

Specifically, Senate Bill 1 will:

• Restructure individual income tax brackets and rates to provide for a two-bracket system;
• Exempt Social Security income from the individual income tax;
• Increase the standard deduction and personal exemption amounts;
• Reduce privilege tax rates;
• Abolish the Local Ad Valorem Tax Reduction Fund and County and City Revenue Sharing Fund;
• Increase the amount of the appraised value of residential property exempt from the statewide uniform school finance levy;
• Increase the child and dependent care income tax credit; and
• Exclude Section 1031 exchange sales from being considered valid sales for property valuation purposes.

For details link to Legislative Brief - https://klrd.org/2024/06/18/summary-of-special-session-sb-1/