Kansas 2023-2024 Regular Session

Kansas House Bill HB2109

Introduced

1/19/23

Refer

1/19/23

Report Pass

2/20/23

Failed

4/30/24

Caption

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.

Impact

The passage of HB2109 is anticipated to directly impact low to middle-income retirees who rely heavily on social security as their primary source of income. By increasing the income limit for tax modifications, it stands to benefit many residents, potentially leading to an increase in disposable income among retirees in Kansas. This bill may also align Kansas tax policy more closely with the policies of other states that already provide favorable tax treatment for social security income, thereby potentially enhancing the state's attractiveness to retirees.

Summary

House Bill 2109 is a legislative proposal aimed at amending the income tax laws in Kansas, specifically concerning the treatment of social security income. The bill proposes to increase the income threshold that qualifies for subtraction modifications for social security income starting from tax year 2026. This change intends to provide tax relief to individuals receiving social security benefits by allowing a greater portion of their benefits to be excluded from their adjusted gross income for state tax purposes. By raising the limit, it aims to ease the tax burden on retirees and enhance financial stability for these individuals.

Contention

Notable points of contention surrounding HB2109 revolve around its fiscal ramifications and the implications for the state budget. Critics argue that providing tax breaks specifically for social security could create gaps in tax revenue, which may affect funding for essential services. Supporters, on the other hand, assert that this modification is a necessary response to the financial pressures faced by retirees and will support economic activity by allowing them to spend a greater share of their income. The debate emphasizes the balance between providing tax relief to vulnerable populations and ensuring the sustainability of state revenue.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2107

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

KS SB56

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

KS HB2457

Providing an income tax rate of 4.95% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income and providing that all social security income qualifies for the subtraction modification commencing in tax year 2026, increasing the Kansas standard deduction for individuals and further increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax surtax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2023, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS HB2136

Providing an income tax subtraction modification for sales of property subject to eminent domain.

KS HB2610

Providing an income tax subtraction modification for sales of property subject to eminent domain.

KS HB2189

Providing an income tax subtraction modification for sales or taking of property subject to eminent domain.

KS SB303

Establishing the Kansas legal tender act and providing for an income tax subtraction modification for sales of specie.

KS HB2405

Establishing the Kansas legal tender act and providing for an income tax subtraction modification for sales of specie.

KS SB39

Establishing the Kansas legal tender act and providing for an income tax subtraction modification for sales of specie.

KS HB2011

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

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 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.

KS SB81

Providing a Kansas income tax subtraction modification for the federal work opportunity tax credit and the employee retention credit disallowances.