Kansas 2023-2024 Regular Session

Kansas House Bill HB2011

Introduced
1/9/23  
Refer
1/9/23  

Caption

Providing a Kansas income tax subtraction modification for certain amounts received as compensation for members of the armed forces.

Impact

If enacted, HB 2011 would amend K.S.A. 2022 Supp. 79-32,117, improving the financial situation of service members by allowing them to subtract their military compensation from their federal adjusted gross income. This can lead to potentially lower state tax liabilities for many Kansas residents who have served or are currently serving in the armed forces. It attempts to align the state's tax policies with the commitment to supporting military members by providing them with tax relief, further ensuring their financial well-being.

Summary

House Bill 2011 proposes a modification to Kansas income tax laws by introducing a subtraction modification for amounts received as compensation by individuals serving in the armed forces. This bill is targeted towards the better treatment of military personnel within the state's tax framework, aiming to provide them financial relief and recognition for their service. The key focus of this bill is to exempt certain types of military compensation from state income taxation, thereby easing the tax burden on active service members, veterans, and members of the Kansas Army and Air National Guard.

Sentiment

The sentiment around HB 2011 appears to be predominantly positive, especially among advocates for veterans and military families. Supporters argue that this bill reflects a necessary adjustment to tax policy that acknowledges the sacrifices made by service members. However, there may be some contention surrounding the funding implications of such tax modifications, particularly how it would affect state revenue, as the removal of income from taxation would require adjustments in budget allocations and possibly affect other funding areas.

Contention

Notable points of contention might arise concerning the long-term fiscal impacts of the tax modification on state revenue. Critics could raise concerns about the implications for budgetary constraints as exemptions are introduced, and whether such changes would be sustainable in the long run. Additionally, the bill's potential impact on tax equity among different sectors of the population may also be debated, with discussions around fairness in tax policies likely to surface as the committee reviews the bill.

Companion Bills

No companion bills found.

Similar Bills

KS SB126

Providing an individual income tax credit for certain residential solar and wind energy property expenditures, a subtraction modification to permit the carryforward of certain net operating losses for individuals and a subtraction modification for the federal work opportunity tax credit and the employee retention credit disallowances.

KS HB2109

Increasing the income limit for the income tax subtraction modification for social security income and providing that all social security benefits qualify for the subtraction modification commencing in tax year 2026.

KS SB110

Exempting all social security benefits from Kansas income tax.

KS SB40

Permitting the carryforward of certain net operating losses for individuals for Kansas income tax purposes and excluding social security payments from household income and increasing the appraised value and household income thresholds for eligibility of seniors and disabled veterans related to increased property tax homestead claims.

KS HB2107

Increasing the income limit to qualify for the income tax subtraction modification for social security income.

KS SB306

Including losses from investments in technology-enabled fiduciary financial institutions in Kansas adjusted gross income for income tax purposes.

KS SB56

Increasing the income limit for the income tax subtraction modification for social security income.

KS SB360

Allowing a taxpayer to elect the taxable year in which a subtraction modification for contributions to a 529 program account, ABLE account or first-time home buyer savings account would be applied and authorizing the state treasurer to appoint a 529 program advisory committee.