Signed by Governor Sam Brownback

Vote Smart's Synopsis:

Vote to pass a bill that reduces income tax rates, extends the sales tax rate, and amends tax deduction laws.

Highlights:

• Establishes the income tax rate for tax year 2012 as follows (Sec. 7):   
• For married individuals filing jointly:
• 3.5 percent for an income less than $30,000;
• 6.25 percent of income over $30,000 plus $1,050 for an income over $30,000 but less than $60,000; and
• 6.45 percent of income over $60,000 plus $2,925 for an income over $60,000.
• For all other individuals:
• 3.5 percent for an income less than $15,000;
• 6.25 percent of income over $15,000 plus $525 for an income over $15,000 but less than $60,000; and
• 6.45 percent of income over $30,000 plus $1462.50 for an income over $30,000.

• Reduces the income tax rate for tax year 2013 as follows (Sec. 7):   
• For married individuals filing jointly:
• 3 percent for an income less than $30,000; and
• 4.9 percent of income over $30,000 plus $900 for an income over $30,000.
• For all other individuals:
• 3 percent for an income less than $15,000; and
• 4.9 percent of income over $15,000 plus $450 for an income over $15,000.

• Reduces the income tax rate for tax year 2014 and 2015 as follows (Sec. 7):   
• For married individuals filing jointly:
• 2.5 percent for an income less than $30,000; and
• 4.9 percent of income over $30,000 plus $750 for an income over $30,000.
• For all other individuals:   
• 2.5 percent for an income less than $15,000; and
• 4.9 percent of income over $15,000 plus $375 for an income over $15,000.

• Reduces the income tax rate for tax year 2016 as follows (Sec. 7):   
• For married individuals filing jointly:
• 1.9 percent for an income less than $30,000; and
• 4.9 percent of income over $30,000 plus $570 for an income over $30,000.
• For all other individuals:   
• 1.9 percent for an income less than $15,000; and
• 4.9 percent of income over $15,000 plus $285 for an income over $15,000.

• Reduces the income tax rate for tax year 2017 and all tax years thereafter as follows (Sec. 7):   
• For married individuals filing jointly:
• 1.9 percent for an income less than $30,000; and
• 3.5 percent of income over $30,000 plus $570 for an income over $30,000.
• For all other individuals:   
• 1.9 percent for an income less than $15,000; and
• 3.5 percent of income over $15,000 plus $285 for an income over $15,000.

• Extends the 6.3 percent sales and use tax rate, whereas existing law required the tax rate to be reduced to 5.7 percent beginning July 1, 2013 (Secs. 4 & 9-11).

• Requires the Secretary of Revenue to annually establish a ratio not to exceed a maximum of 1 to determine the maximum total amount of tax deductions an individual can claim by dividing the highest marginal income tax rate for the applicable tax year by the baseline highest marginal income tax rate of 6.45 percent (Sec. 8).

• Authorizes an individual to claim a maximum total amount of tax deductions equal to the product of the annual ratio by the total amount of deductions available to the individual (Sec. 8).

• Exempts charitable contributions from the tax deduction provisions of this bill (Sec. 8).

• Repeals the residential interest tax deduction (Sec. 8).

Full Bill Text