Kansas 2023-2024 Regular Session

Kansas House Bill HB2284 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Session of 2023
1	2		HOUSE BILL No. 2284
2		-	AN ACT concerning taxation; relating to income tax; providing a 5.25% tax rate for
3		-	individuals; eliminating the income limitation to receive the subtraction modification
4		-	exempting social security benefits; increasing the Kansas standard deduction by a
5		-	cost-of-living adjustment; increasing the Kansas personal exemption; relating to
6		-	privilege tax; decreasing the normal tax rate; relating to property tax; increasing the
7		-	extent of exemption for residential property from the statewide school levy;
8		-	concerning sales and compensating use tax; relating to sales of food and food
9		-	ingredients; reducing the rate of tax imposed; modifying the percent credited to the
10		-	state highway fund from revenue collected; amending K.S.A. 79-1107 and 79-1108
11		-	and K.S.A. 2023 Supp. 79-201x, 79-32,110, 79-32,117, 79-32,119, 79-32,121, 79-
12		-	3603, 79-3603d, 79-3620, 79-3703 and 79-3710 and repealing the existing sections.
	3	+	By Committee on Insurance
	4	+	2-2
	5	+	AN ACT concerning insurance; pertaining to the continuation of
	6	+	firefighter health insurance; adding fire districts to the definition of
	7	+	"municipality" for purposes of the payment of COBRA premiums
	8	+	under certain circumstances; amending K.S.A. 40-1709 and repealing
	9	+	the existing section.
13	10		Be it enacted by the Legislature of the State of Kansas:
14		-	Section 1. K.S.A. 2023 Supp. 79-201x is hereby amended to read
15		-	as follows: 79-201x. (a) For taxable year 2022 2024, and all taxable
16		-	years thereafter, the following described property, to the extent herein
17		-	specified, shall be and is hereby exempt from the property tax levied
18		-	pursuant to the provisions of K.S.A. 72-5142, and amendments thereto:
19		-	Property used for residential purposes to the extent of $40,000
20		-	$100,000 of its appraised valuation.
21		-	(b) For taxable year 2023 2025, and all taxable years thereafter,
22		-	the dollar amount of the extent of appraised valuation that is exempt
23		-	pursuant to subsection (a) shall be adjusted to reflect the average
24		-	percentage change in statewide residential valuation of all residential
25		-	real property for the preceding 10 years. Such average percentage
26		-	change shall not be less than zero. The director of property valuation
27		-	shall calculate the average percentage change for purposes of this
28		-	annual adjustment and calculate the dollar amount of the extent of
29		-	appraised valuation that is exempt pursuant to this section each year.
30		-	Sec. 2. K.S.A. 79-1107 is hereby amended to read as follows: 79-
31		-	1107. (a) Every national banking association and state bank located or
32		-	doing business within the state shall pay to the state for the privilege of
33		-	doing business within the state a tax according to or measured by its net
34		-	income for the next preceding taxable year to be computed as provided
35		-	in this act. Such tax shall consist of a normal tax and a surtax and shall
36		-	be computed as follows:
37		-	(a)(1) (A) For tax year 2024, the normal tax shall be an amount
38		-	equal to 2
	11	+	Section 1. K.S.A. 40-1709 is hereby amended to read as follows: 40-
	12	+	1709. (a) (1) Except as provided in paragraph (2), whenever a municipality
	13	+	provides for the payment of premiums for any health benefit plan for its
	14	+	firefighters, it shall pay premiums for the continuation of coverage under
	15	+	COBRA for the surviving spouse and eligible dependent children under
	16	+	the age of 26 years of a firefighter who dies in the line of duty. Premiums
	17	+	for continuation of coverage under COBRA shall be paid for 18 months.
	18	+	(2) A municipality may not be required to pay the premiums
	19	+	described in paragraph (1) for a surviving spouse:
	20	+	(A) On or after the end of the 18
	21	+	th
	22	+	calendar month after the date of
	23	+	death of the deceased firefighter;
	24	+	(B) upon the remarriage of the deceased firefighter's surviving
	25	+	spouse; or
	26	+	(C) upon the deceased firefighter's surviving spouse reaching the age
	27	+	of 65.
	28	+	(b) For the purposes of this section:
	29	+	(1) "Firefighter" means an actual member of an organized fire
	30	+	department, of a municipality, whether regular or volunteer.
	31	+	(2) "Health benefit plan" shall have the meaning ascribed to it means
	32	+	the same as defined in K.S.A. 40-4602, and amendments thereto.
	33	+	(3) "Municipality" means a city, county, fire district or township.
	34	+	(4) "Postsecondary educational institution" shall have the meaning
	35	+	ascribed to it in K.S.A. 74-3201b, and amendments thereto.
	36	+	Sec. 2. K.S.A. 40-1709 is hereby repealed.
	37	+	Sec. 3. This act shall take effect and be in force from and after its
	38	+	publication in the statute book.
39	39		1
40		-	/4% 2.25% of such net income; and
41		-	(B) for tax year 2025, and all tax years thereafter, the normal tax
42		-	shall be an amount equal to 1.63% of such net income; and
43		-	(b)(2) the surtax shall be an amount equal to 2
44		-	1
45		-	/8% 2.125% of
46		-	such net income in excess of $25,000.
47		-	(b) The tax levied shall be in lieu of ad valorem taxes which might
48		-	otherwise be imposed by the state or political subdivisions thereof upon
49		-	shares of capital stock or the intangible assets of national banking
50		-	associations and state banks.
51		-	Sec. 3. K.S.A. 79-1108 is hereby amended to read as follows: 79-
52		-	1108. (a) Every trust company and savings and loan association located
53		-	or doing business within the state shall pay to the state for the privilege
54		-	of doing business within the state a tax according to or measured by its
55		-	net income for the next preceding taxable year to be computed as
56		-	provided in this act. Such tax shall consist of a normal tax and a surtax
57		-	and shall be computed as follows:
58		-	(a)(1) (A) For tax year 2024, the normal tax on every trust
59		-	company and savings and loan association shall be an amount equal to
60		-	2
61		-	1
62		-	/4% 2.25% of such net income; and
63		-	(B) for tax year 2025, and all tax years thereafter, the normal tax
64		-	on every trust company and savings and loan association shall be an
65		-	amount equal to 1.61% of such net income; and
66		-	(b)(2) the surtax on every trust company and savings and loan
67		-	association shall be an amount equal to 2
68		-	1
69		-	/4% 2.25% of such net
70		-	income in excess of $25,000.
71		-	(b) The tax levied shall be in lieu of ad valorem taxes which might
72		-	otherwise be imposed by the state or political subdivision thereof upon
73		-	shares of capital stock or other intangible assets of trust companies and
74		-	savings and loan associations.
75		-	Sec. 4. K.S.A. 2023 Supp. 79-32,110 is hereby amended to read as HOUSE BILL No. 2284—page 2
76		-	follows: 79-32,110. (a) Resident individuals. Except as otherwise
77		-	provided by K.S.A. 79-3220(a), and amendments thereto, a tax is
78		-	hereby imposed upon the Kansas taxable income of every resident
79		-	individual, which tax shall be computed in accordance with the
80		-	following tax schedules:
81		-	(1) Married individuals filing joint returns.
82		-	(A) For tax year 2012:
83		-	If the taxable income is: The tax is:
84		-	Not over $30,000 3.5% of Kansas taxable
85		-	income
86		-	Over $30,000 but not over $60,000 $1,050 plus 6.25% of
87		-	excess over $30,000
88		-	Over $60,000 $2,925 plus 6.45% of
89		-	excess over $60,000
90		-	(B) For tax year 2013:
91		-	If the taxable income is: The tax is:
92		-	Not over $30,000 3.0% of Kansas taxable
93		-	income
94		-	Over $30,000 $900 plus 4.9% of
95		-	excess over $30,000
96		-	(C) For tax year 2014:
97		-	If the taxable income is: The tax is:
98		-	Not over $30,000 2.7% of Kansas taxable
99		-	income
100		-	Over $30,000 $810 plus 4.8% of excess
101		-	over $30,000
102		-	(D) For tax years 2015 and 2016:
103		-	If the taxable income is: The tax is:
104		-	Not over $30,000 2.7% of Kansas taxable
105		-	income
106		-	Over $30,000 $810 plus 4.6% of
107		-	excess over $30,000
108		-	(E) For tax year 2017:
109		-	If the taxable income is: The tax is:
110		-	Not over $30,000 2.9% of Kansas taxable
111		-	income
112		-	Over $30,000 but not over $60,000 $870 plus 4.9% of
113		-	excess over $30,000
114		-	Over $60,000 $2,340 plus 5.2% of excess
115		-	over $60,000
116		-	(F) For tax year years 2018, and all tax years thereafter through
117		-	2024:
118		-	If the taxable income is: The tax is:
119		-	Not over $30,000 3.1% of Kansas taxable
120		-	income
121		-	Over $30,000 but not over $60,000$930 plus 5.25% of excess
122		-	over $30,000
123		-	Over $60,000 $2,505 plus 5.7% of excess
124		-	over $60,000
125		-	(2) All other individuals.
126		-	(A) For tax year 2012:
127		-	If the taxable income is: The tax is:
128		-	Not over $15,000 3.5% of Kansas taxable
129		-	income
130		-	Over $15,000 but not over $30,000 $525 plus 6.25% of excess
131		-	over $15,000
132		-	Over $30,000 $1,462.50 plus 6.45% of
133		-	excess over $30,000
134		-	(B) For tax year 2013: HOUSE BILL No. 2284—page 3
135		-	If the taxable income is: The tax is:
136		-	Not over $15,000 3.0% of Kansas taxable
137		-	income
138		-	Over $15,000 $450 plus 4.9% of excess
139		-	over $15,000
140		-	(C) For tax year 2014:
141		-	If the taxable income is: The tax is:
142		-	Not over $15,000 2.7% of Kansas taxable
143		-	income
144		-	Over $15,000 $405 plus 4.8% of excess
145		-	over $15,000
146		-	(D) For tax years 2015 and 2016:
147		-	If the taxable income is: The tax is:
148		-	Not over $15,000 2.7% of Kansas taxable
149		-	income
150		-	Over $15,000 $405 plus 4.6% of excess
151		-	over $15,000
152		-	(E) For tax year 2017:
153		-	If the taxable income is: The tax is:
154		-	Not over $15,000 2.9% of Kansas taxable
155		-	income
156		-	Over $15,000 but not over $30,000 $435 plus 4.9% of excess
157		-	over $15,000
158		-	Over $30,000 $1,170 plus 5.2% of excess
159		-	over $30,000
160		-	(F) For tax year years 2018, and all tax years thereafter through
161		-	2024:
162		-	If the taxable income is: The tax is:
163		-	Not over $15,000 3.1% of Kansas taxable
164		-	income
165		-	Over $15,000 but not over $30,000$465 plus 5.25% of excess
166		-	over $15,000
167		-	Over $30,000 $1,252.50 plus 5.7% of
168		-	excess over $30,000
169		-	(3) All resident individuals. For tax year 2025, and all tax years
170		-	thereafter, for all individuals regardless of filing status, the tax shall be
171		-	in an amount equal to 5.25% of the Kansas taxable income that is in
172		-	excess of:
173		-	(A) $12,300 for married individuals filing joint returns; and
174		-	(B) $6,150 for all other individuals.
175		-	(b) Nonresident individuals. A tax is hereby imposed upon the
176		-	Kansas taxable income of every nonresident individual, which tax shall
177		-	be an amount equal to the tax computed under subsection (a) as if the
178		-	nonresident were a resident multiplied by the ratio of modified Kansas
179		-	source income to Kansas adjusted gross income.
180		-	(c) Corporations. A tax is hereby imposed upon the Kansas
181		-	taxable income of every corporation doing business within this state or
182		-	deriving income from sources within this state. Such tax shall consist of
183		-	a normal tax and a surtax and shall be computed as follows unless
184		-	otherwise modified pursuant to K.S.A. 2023 Supp. 74-50,321, and
185		-	amendments thereto:
186		-	(1) The normal tax shall be in an amount equal to 4% of the
187		-	Kansas taxable income of such corporation; and
188		-	(2) the surtax shall be in an amount equal to 3% of the Kansas
189		-	taxable income of such corporation in excess of $50,000.
190		-	(d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable
191		-	income of estates and trusts at the rates provided in subsection (a)(2)
192		-	hereof for tax years 2018 through 2024 and at the rate provided in
193		-	subsection (a)(3) for tax year 2025, and all tax years thereafter. HOUSE BILL No. 2284—page 4
194		-	(e) Notwithstanding the provisions of subsections (a) and (b): (1)
195		-	For tax years 2016 and 2017, married individuals filing joint returns
196		-	with taxable income of $12,500 or less, and all other individuals with
197		-	taxable income of $5,000 or less, shall have a tax liability of zero; and
198		-	(2), for tax year years 2018, and all tax years thereafter through 2024,
199		-	married individuals filing joint returns with taxable income of $5,000
200		-	or less, and all other individuals with taxable income of $2,500 or less,
201		-	shall have a tax liability of zero.
202		-	(f) No taxpayer shall be assessed penalties and interest arising
203		-	from the underpayment of taxes due to changes to the rates in
204		-	subsection (a) that became law on July 1, 2017, so long as such
205		-	underpayment is rectified on or before April 17, 2018.
206		-	Sec. 5. K.S.A. 2023 Supp. 79-32,117 is hereby amended to read as
207		-	follows: 79-32,117. (a) The Kansas adjusted gross income of an
208		-	individual means such individual's federal adjusted gross income for
209		-	the taxable year, with the modifications specified in this section.
210		-	(b) There shall be added to federal adjusted gross income:
211		-	(i) Interest income less any related expenses directly incurred in
212		-	the purchase of state or political subdivision obligations, to the extent
213		-	that the same is not included in federal adjusted gross income, on
214		-	obligations of any state or political subdivision thereof, but to the
215		-	extent that interest income on obligations of this state or a political
216		-	subdivision thereof issued prior to January 1, 1988, is specifically
217		-	exempt from income tax under the laws of this state authorizing the
218		-	issuance of such obligations, it shall be excluded from computation of
219		-	Kansas adjusted gross income whether or not included in federal
220		-	adjusted gross income. Interest income on obligations of this state or a
221		-	political subdivision thereof issued after December 31, 1987, shall be
222		-	excluded from computation of Kansas adjusted gross income whether
223		-	or not included in federal adjusted gross income.
224		-	(ii) Taxes on or measured by income or fees or payments in lieu of
225		-	income taxes imposed by this state or any other taxing jurisdiction to
226		-	the extent deductible in determining federal adjusted gross income and
227		-	not credited against federal income tax. This paragraph shall not apply
228		-	to taxes imposed under the provisions of K.S.A. 79-1107 or 79-1108,
229		-	and amendments thereto, for privilege tax year 1995, and all such years
230		-	thereafter.
231		-	(iii) The federal net operating loss deduction, except that the
232		-	federal net operating loss deduction shall not be added to an
233		-	individual's federal adjusted gross income for tax years beginning after
234		-	December 31, 2016.
235		-	(iv) Federal income tax refunds received by the taxpayer if the
236		-	deduction of the taxes being refunded resulted in a tax benefit for
237		-	Kansas income tax purposes during a prior taxable year. Such refunds
238		-	shall be included in income in the year actually received regardless of
239		-	the method of accounting used by the taxpayer. For purposes hereof, a
240		-	tax benefit shall be deemed to have resulted if the amount of the tax
241		-	had been deducted in determining income subject to a Kansas income
242		-	tax for a prior year regardless of the rate of taxation applied in such
243		-	prior year to the Kansas taxable income, but only that portion of the
244		-	refund shall be included as bears the same proportion to the total refund
245		-	received as the federal taxes deducted in the year to which such refund
246		-	is attributable bears to the total federal income taxes paid for such year.
247		-	For purposes of the foregoing sentence, federal taxes shall be
248		-	considered to have been deducted only to the extent such deduction
249		-	does not reduce Kansas taxable income below zero.
250		-	(v) The amount of any depreciation deduction or business expense
251		-	deduction claimed on the taxpayer's federal income tax return for any
252		-	capital expenditure in making any building or facility accessible to the HOUSE BILL No. 2284—page 5
253		-	handicapped, for which expenditure the taxpayer claimed the credit
254		-	allowed by K.S.A. 79-32,177, and amendments thereto.
255		-	(vi) Any amount of designated employee contributions picked up
256		-	by an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-
257		-	4965, and amendments thereto.
258		-	(vii) The amount of any charitable contribution made to the extent
259		-	the same is claimed as the basis for the credit allowed pursuant to
260		-	K.S.A. 79-32,196, and amendments thereto.
261		-	(viii) The amount of any costs incurred for improvements to a
262		-	swine facility, claimed for deduction in determining federal adjusted
263		-	gross income, to the extent the same is claimed as the basis for any
264		-	credit allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
265		-	(ix) The amount of any ad valorem taxes and assessments paid and
266		-	the amount of any costs incurred for habitat management or
267		-	construction and maintenance of improvements on real property,
268		-	claimed for deduction in determining federal adjusted gross income, to
269		-	the extent the same is claimed as the basis for any credit allowed
270		-	pursuant to K.S.A. 79-32,203, and amendments thereto.
271		-	(x) Amounts received as nonqualified withdrawals, as defined by
272		-	K.S.A. 75-643, and amendments thereto, if, at the time of contribution
273		-	to a family postsecondary education savings account, such amounts
274		-	were subtracted from the federal adjusted gross income pursuant to
275		-	subsection (c)(xv) or if such amounts are not already included in the
276		-	federal adjusted gross income.
277		-	(xi) The amount of any contribution made to the same extent the
278		-	same is claimed as the basis for the credit allowed pursuant to K.S.A.
279		-	74-50,154, and amendments thereto.
280		-	(xii) For taxable years commencing after December 31, 2004,
281		-	amounts received as withdrawals not in accordance with the provisions
282		-	of K.S.A. 74-50,204, and amendments thereto, if, at the time of
283		-	contribution to an individual development account, such amounts were
284		-	subtracted from the federal adjusted gross income pursuant to
285		-	subsection (c)(xiii), or if such amounts are not already included in the
286		-	federal adjusted gross income.
287		-	(xiii) The amount of any expenditures claimed for deduction in
288		-	determining federal adjusted gross income, to the extent the same is
289		-	claimed as the basis for any credit allowed pursuant to K.S.A. 79-
290		-	32,217 through 79-32,220 or 79-32,222, and amendments thereto.
291		-	(xiv) The amount of any amortization deduction claimed in
292		-	determining federal adjusted gross income to the extent the same is
293		-	claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
294		-	thereto.
295		-	(xv) The amount of any expenditures claimed for deduction in
296		-	determining federal adjusted gross income, to the extent the same is
297		-	claimed as the basis for any credit allowed pursuant to K.S.A. 79-
298		-	32,223 through 79-32,226, 79-32,228 through 79-32,231, 79-32,233
299		-	through 79-32,236, 79-32,238 through 79-32,241, 79-32,245 through
300		-	79-32,248 or 79-32,251 through 79-32,254, and amendments thereto.
301		-	(xvi) The amount of any amortization deduction claimed in
302		-	determining federal adjusted gross income to the extent the same is
303		-	claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
304		-	32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
305		-	(xvii) The amount of any amortization deduction claimed in
306		-	determining federal adjusted gross income to the extent the same is
307		-	claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
308		-	thereto.
309		-	(xviii) For taxable years commencing after December 31, 2006,
310		-	the amount of any ad valorem or property taxes and assessments paid to
311		-	a state other than Kansas or local government located in a state other HOUSE BILL No. 2284—page 6
312		-	than Kansas by a taxpayer who resides in a state other than Kansas,
313		-	when the law of such state does not allow a resident of Kansas who
314		-	earns income in such other state to claim a deduction for ad valorem or
315		-	property taxes or assessments paid to a political subdivision of the state
316		-	of Kansas in determining taxable income for income tax purposes in
317		-	such other state, to the extent that such taxes and assessments are
318		-	claimed as an itemized deduction for federal income tax purposes.
319		-	(xix) For taxable years beginning after December 31, 2012, and
320		-	ending before January 1, 2017, the amount of any: (1) Loss from
321		-	business as determined under the federal internal revenue code and
322		-	reported from schedule C and on line 12 of the taxpayer's form 1040
323		-	federal individual income tax return; (2) loss from rental real estate,
324		-	royalties, partnerships, S corporations, except those with wholly owned
325		-	subsidiaries subject to the Kansas privilege tax, estates, trusts, residual
326		-	interest in real estate mortgage investment conduits and net farm rental
327		-	as determined under the federal internal revenue code and reported
328		-	from schedule E and on line 17 of the taxpayer's form 1040 federal
329		-	individual income tax return; and (3) farm loss as determined under the
330		-	federal internal revenue code and reported from schedule F and on line
331		-	18 of the taxpayer's form 1040 federal income tax return; all to the
332		-	extent deducted or subtracted in determining the taxpayer's federal
333		-	adjusted gross income. For purposes of this subsection, references to
334		-	the federal form 1040 and federal schedule C, schedule E, and schedule
335		-	F, shall be to such form and schedules as they existed for tax year 2011,
336		-	and as revised thereafter by the internal revenue service.
337		-	(xx) For taxable years beginning after December 31, 2012, and
338		-	ending before January 1, 2017, the amount of any deduction for self-
339		-	employment taxes under section 164(f) of the federal internal revenue
340		-	code as in effect on January 1, 2012, and amendments thereto, in
341		-	determining the federal adjusted gross income of an individual
342		-	taxpayer, to the extent the deduction is attributable to income reported
343		-	on schedule C, E or F and on line 12, 17 or 18 of the taxpayer's form
344		-	1040 federal income tax return.
345		-	(xxi) For taxable years beginning after December 31, 2012, and
346		-	ending before January 1, 2017, the amount of any deduction for
347		-	pension, profit sharing, and annuity plans of self-employed individuals
348		-	under section 62(a)(6) of the federal internal revenue code as in effect
349		-	on January 1, 2012, and amendments thereto, in determining the federal
350		-	adjusted gross income of an individual taxpayer.
351		-	(xxii) For taxable years beginning after December 31, 2012, and
352		-	ending before January 1, 2017, the amount of any deduction for health
353		-	insurance under section 162(l) of the federal internal revenue code as in
354		-	effect on January 1, 2012, and amendments thereto, in determining the
355		-	federal adjusted gross income of an individual taxpayer.
356		-	(xxiii) For taxable years beginning after December 31, 2012, and
357		-	ending before January 1, 2017, the amount of any deduction for
358		-	domestic production activities under section 199 of the federal internal
359		-	revenue code as in effect on January 1, 2012, and amendments thereto,
360		-	in determining the federal adjusted gross income of an individual
361		-	taxpayer.
362		-	(xxiv) For taxable years commencing after December 31, 2013,
363		-	that portion of the amount of any expenditure deduction claimed in
364		-	determining federal adjusted gross income for expenses paid for
365		-	medical care of the taxpayer or the taxpayer's spouse or dependents
366		-	when such expenses were paid or incurred for an abortion, or for a
367		-	health benefit plan, as defined in K.S.A. 65-6731, and amendments
368		-	thereto, for the purchase of an optional rider for coverage of abortion in
369		-	accordance with K.S.A. 40-2,190, and amendments thereto, to the
370		-	extent that such taxes and assessments are claimed as an itemized HOUSE BILL No. 2284—page 7
371		-	deduction for federal income tax purposes.
372		-	(xxv) For taxable years commencing after December 31, 2013,
373		-	that portion of the amount of any expenditure deduction claimed in
374		-	determining federal adjusted gross income for expenses paid by a
375		-	taxpayer for health care when such expenses were paid or incurred for
376		-	abortion coverage, a health benefit plan, as defined in K.S.A. 65-6731,
377		-	and amendments thereto, when such expenses were paid or incurred for
378		-	abortion coverage or amounts contributed to health savings accounts
379		-	for such taxpayer's employees for the purchase of an optional rider for
380		-	coverage of abortion in accordance with K.S.A. 40-2,190, and
381		-	amendments thereto, to the extent that such taxes and assessments are
382		-	claimed as a deduction for federal income tax purposes.
383		-	(xxvi) For all taxable years beginning after December 31, 2016,
384		-	the amount of any charitable contribution made to the extent the same
385		-	is claimed as the basis for the credit allowed pursuant to K.S.A. 72-
386		-	4357, and amendments thereto, and is also claimed as an itemized
387		-	deduction for federal income tax purposes.
388		-	(xxvii) For all taxable years commencing after December 31,
389		-	2020, the amount deducted by reason of a carryforward of disallowed
390		-	business interest pursuant to section 163(j) of the federal internal
391		-	revenue code of 1986, as in effect on January 1, 2018.
392		-	(xxviii) For all taxable years beginning after December 31, 2021,
393		-	the amount of any contributions to, or earnings from, a first-time home
394		-	buyer savings account if distributions from the account were not used
395		-	to pay for expenses or transactions authorized pursuant to K.S.A. 2023
396		-	Supp. 58-4904, and amendments thereto, or were not held for the
397		-	minimum length of time required pursuant to K.S.A. 2023 Supp. 58-
398		-	4904, and amendments thereto. Contributions to, or earnings from,
399		-	such account shall also include any amount resulting from the account
400		-	holder not designating a surviving payable on death beneficiary
401		-	pursuant to K.S.A. 2023 Supp. 58-4904(e), and amendments thereto.
402		-	(c) There shall be subtracted from federal adjusted gross income:
403		-	(i) Interest or dividend income on obligations or securities of any
404		-	authority, commission or instrumentality of the United States and its
405		-	possessions less any related expenses directly incurred in the purchase
406		-	of such obligations or securities, to the extent included in federal
407		-	adjusted gross income but exempt from state income taxes under the
408		-	laws of the United States.
409		-	(ii) Any amounts received which are included in federal adjusted
410		-	gross income but which are specifically exempt from Kansas income
411		-	taxation under the laws of the state of Kansas.
412		-	(iii) The portion of any gain or loss from the sale or other
413		-	disposition of property having a higher adjusted basis for Kansas
414		-	income tax purposes than for federal income tax purposes on the date
415		-	such property was sold or disposed of in a transaction in which gain or
416		-	loss was recognized for purposes of federal income tax that does not
417		-	exceed such difference in basis, but if a gain is considered a long-term
418		-	capital gain for federal income tax purposes, the modification shall be
419		-	limited to that portion of such gain which is included in federal
420		-	adjusted gross income.
421		-	(iv) The amount necessary to prevent the taxation under this act of
422		-	any annuity or other amount of income or gain which was properly
423		-	included in income or gain and was taxed under the laws of this state
424		-	for a taxable year prior to the effective date of this act, as amended, to
425		-	the taxpayer, or to a decedent by reason of whose death the taxpayer
426		-	acquired the right to receive the income or gain, or to a trust or estate
427		-	from which the taxpayer received the income or gain.
428		-	(v) The amount of any refund or credit for overpayment of taxes
429		-	on or measured by income or fees or payments in lieu of income taxes HOUSE BILL No. 2284—page 8
430		-	imposed by this state, or any taxing jurisdiction, to the extent included
431		-	in gross income for federal income tax purposes.
432		-	(vi) Accumulation distributions received by a taxpayer as a
433		-	beneficiary of a trust to the extent that the same are included in federal
434		-	adjusted gross income.
435		-	(vii) Amounts received as annuities under the federal civil service
436		-	retirement system from the civil service retirement and disability fund
437		-	and other amounts received as retirement benefits in whatever form
438		-	which were earned for being employed by the federal government or
439		-	for service in the armed forces of the United States.
440		-	(viii) Amounts received by retired railroad employees as a
441		-	supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
442		-	228c(a)(1) et seq.
443		-	(ix) Amounts received by retired employees of a city and by
444		-	retired employees of any board of such city as retirement allowances
445		-	pursuant to K.S.A. 13-14,106, and amendments thereto, or pursuant to
446		-	any charter ordinance exempting a city from the provisions of K.S.A.
447		-	13-14,106, and amendments thereto.
448		-	(x) For taxable years beginning after December 31, 1976, the
449		-	amount of the federal tentative jobs tax credit disallowance under the
450		-	provisions of 26 U.S.C. § 280C. For taxable years ending after
451		-	December 31, 1978, the amount of the targeted jobs tax credit and work
452		-	incentive credit disallowances under 26 U.S.C. § 280C.
453		-	(xi) For taxable years beginning after December 31, 1986,
454		-	dividend income on stock issued by Kansas venture capital, inc.
455		-	(xii) For taxable years beginning after December 31, 1989,
456		-	amounts received by retired employees of a board of public utilities as
457		-	pension and retirement benefits pursuant to K.S.A. 13-1246, 13-1246a
458		-	and 13-1249, and amendments thereto.
459		-	(xiii) For taxable years beginning after December 31, 2004,
460		-	amounts contributed to and the amount of income earned on
461		-	contributions deposited to an individual development account under
462		-	K.S.A. 74-50,201 et seq., and amendments thereto.
463		-	(xiv) For all taxable years commencing after December 31, 1996,
464		-	that portion of any income of a bank organized under the laws of this
465		-	state or any other state, a national banking association organized under
466		-	the laws of the United States, an association organized under the
467		-	savings and loan code of this state or any other state, or a federal
468		-	savings association organized under the laws of the United States, for
469		-	which an election as an S corporation under subchapter S of the federal
470		-	internal revenue code is in effect, which accrues to the taxpayer who is
471		-	a stockholder of such corporation and which is not distributed to the
472		-	stockholders as dividends of the corporation. For taxable years
473		-	beginning after December 31, 2012, and ending before January 1, 2017,
474		-	the amount of modification under this subsection shall exclude the
475		-	portion of income or loss reported on schedule E and included on line
476		-	17 of the taxpayer's form 1040 federal individual income tax return.
477		-	(xv) For all taxable years beginning after December 31, 2017, the
478		-	cumulative amounts not exceeding $3,000, or $6,000 for a married
479		-	couple filing a joint return, for each designated beneficiary that are
480		-	contributed to: (1) A family postsecondary education savings account
481		-	established under the Kansas postsecondary education savings program
482		-	or a qualified tuition program established and maintained by another
483		-	state or agency or instrumentality thereof pursuant to section 529 of the
484		-	internal revenue code of 1986, as amended, for the purpose of paying
485		-	the qualified higher education expenses of a designated beneficiary; or
486		-	(2) an achieving a better life experience (ABLE) account established
487		-	under the Kansas ABLE savings program or a qualified ABLE program
488		-	established and maintained by another state or agency or HOUSE BILL No. 2284—page 9
489		-	instrumentality thereof pursuant to section 529A of the internal revenue
490		-	code of 1986, as amended, for the purpose of saving private funds to
491		-	support an individual with a disability. The terms and phrases used in
492		-	this paragraph shall have the meaning respectively ascribed thereto by
493		-	the provisions of K.S.A. 75-643 and 75-652, and amendments thereto,
494		-	and the provisions of such sections are hereby incorporated by
495		-	reference for all purposes thereof.
496		-	(xvi) For all taxable years beginning after December 31, 2004,
497		-	amounts received by taxpayers who are or were members of the armed
498		-	forces of the United States, including service in the Kansas army and
499		-	air national guard, as a recruitment, sign up or retention bonus received
500		-	by such taxpayer as an incentive to join, enlist or remain in the armed
501		-	services of the United States, including service in the Kansas army and
502		-	air national guard, and amounts received for repayment of educational
503		-	or student loans incurred by or obligated to such taxpayer and received
504		-	by such taxpayer as a result of such taxpayer's service in the armed
505		-	forces of the United States, including service in the Kansas army and
506		-	air national guard.
507		-	(xvii) For all taxable years beginning after December 31, 2004,
508		-	amounts received by taxpayers who are eligible members of the Kansas
509		-	army and air national guard as a reimbursement pursuant to K.S.A. 48-
510		-	281, and amendments thereto, and amounts received for death benefits
511		-	pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
512		-	such death benefits are included in federal adjusted gross income of the
513		-	taxpayer.
514		-	(xviii) For the taxable year beginning after December 31, 2006,
515		-	amounts received as benefits under the federal social security act which
516		-	are included in federal adjusted gross income of a taxpayer with federal
517		-	adjusted gross income of $50,000 or less, whether such taxpayer's filing
518		-	status is single, head of household, married filing separate or married
519		-	filing jointly; and (1) For all taxable years beginning after December
520		-	31, 2007, and ending before January 1, 2024, amounts received as
521		-	benefits under the federal social security act which are included in
522		-	federal adjusted gross income of a taxpayer with federal adjusted gross
523		-	income of $75,000 or less, whether such taxpayer's filing status is
524		-	single, head of household, married filing separate or married filing
525		-	jointly; and
526		-	(2) for all taxable years beginning after December 31, 2023,
527		-	amounts received as benefits under the federal social security act that
528		-	are included in federal adjusted gross income of a taxpayer.
529		-	(xix) Amounts received by retired employees of Washburn
530		-	university as retirement and pension benefits under the university's
531		-	retirement plan.
532		-	(xx) For taxable years beginning after December 31, 2012, and
533		-	ending before January 1, 2017, the amount of any: (1) Net profit from
534		-	business as determined under the federal internal revenue code and
535		-	reported from schedule C and on line 12 of the taxpayer's form 1040
536		-	federal individual income tax return; (2) net income, not including
537		-	guaranteed payments as defined in section 707(c) of the federal internal
538		-	revenue code and as reported to the taxpayer from federal schedule K-
539		-	1, (form 1065-B), in box 9, code F or as reported to the taxpayer from
540		-	federal schedule K-1, (form 1065) in box 4, from rental real estate,
541		-	royalties, partnerships, S corporations, estates, trusts, residual interest
542		-	in real estate mortgage investment conduits and net farm rental as
543		-	determined under the federal internal revenue code and reported from
544		-	schedule E and on line 17 of the taxpayer's form 1040 federal
545		-	individual income tax return; and (3) net farm profit as determined
546		-	under the federal internal revenue code and reported from schedule F
547		-	and on line 18 of the taxpayer's form 1040 federal income tax return; HOUSE BILL No. 2284—page 10
548		-	all to the extent included in the taxpayer's federal adjusted gross
549		-	income. For purposes of this subsection, references to the federal form
550		-	1040 and federal schedule C, schedule E, and schedule F, shall be to
551		-	such form and schedules as they existed for tax year 2011 and as
552		-	revised thereafter by the internal revenue service.
553		-	(xxi) For all taxable years beginning after December 31, 2013,
554		-	amounts equal to the unreimbursed travel, lodging and medical
555		-	expenditures directly incurred by a taxpayer while living, or a
556		-	dependent of the taxpayer while living, for the donation of one or more
557		-	human organs of the taxpayer, or a dependent of the taxpayer, to
558		-	another person for human organ transplantation. The expenses may be
559		-	claimed as a subtraction modification provided for in this section to the
560		-	extent the expenses are not already subtracted from the taxpayer's
561		-	federal adjusted gross income. In no circumstances shall the subtraction
562		-	modification provided for in this section for any individual, or a
563		-	dependent, exceed $5,000. As used in this section, "human organ"
564		-	means all or part of a liver, pancreas, kidney, intestine, lung or bone
565		-	marrow. The provisions of this paragraph shall take effect on the day
566		-	the secretary of revenue certifies to the director of the budget that the
567		-	cost for the department of revenue of modifications to the automated
568		-	tax system for the purpose of implementing this paragraph will not
569		-	exceed $20,000.
570		-	(xxii) For taxable years beginning after December 31, 2012, and
571		-	ending before January 1, 2017, the amount of net gain from the sale of:
572		-	(1) Cattle and horses, regardless of age, held by the taxpayer for draft,
573		-	breeding, dairy or sporting purposes, and held by such taxpayer for 24
574		-	months or more from the date of acquisition; and (2) other livestock,
575		-	regardless of age, held by the taxpayer for draft, breeding, dairy or
576		-	sporting purposes, and held by such taxpayer for 12 months or more
577		-	from the date of acquisition. The subtraction from federal adjusted
578		-	gross income shall be limited to the amount of the additions recognized
579		-	under the provisions of subsection (b)(xix) attributable to the business
580		-	in which the livestock sold had been used. As used in this paragraph,
581		-	the term "livestock" shall not include poultry.
582		-	(xxiii) For all taxable years beginning after December 31, 2012,
583		-	amounts received under either the Overland Park, Kansas police
584		-	department retirement plan or the Overland Park, Kansas fire
585		-	department retirement plan, both as established by the city of Overland
586		-	Park, pursuant to the city's home rule authority.
587		-	(xxiv) For taxable years beginning after December 31, 2013, and
588		-	ending before January 1, 2017, the net gain from the sale from
589		-	Christmas trees grown in Kansas and held by the taxpayer for six years
590		-	or more.
591		-	(xxv) For all taxable years commencing after December 31, 2020,
592		-	100% of global intangible low-taxed income under section 951A of the
593		-	federal internal revenue code of 1986, before any deductions allowed
594		-	under section 250(a)(1)(B) of such code.
595		-	(xxvi) For all taxable years commencing after December 31, 2020,
596		-	the amount disallowed as a deduction pursuant to section 163(j) of the
597		-	federal internal revenue code of 1986, as in effect on January 1, 2018.
598		-	(xxvii) For taxable years commencing after December 31, 2020,
599		-	the amount disallowed as a deduction pursuant to section 274 of the
600		-	federal internal revenue code of 1986 for meal expenditures shall be
601		-	allowed to the extent such expense was deductible for determining
602		-	federal income tax and was allowed and in effect on December 31,
603		-	2017.
604		-	(xxviii) For all taxable years beginning after December 31, 2021:
605		-	(1) The amount contributed to a first-time home buyer savings account
606		-	pursuant to K.S.A. 2023 Supp. 58-4903, and amendments thereto, in an HOUSE BILL No. 2284—page 11
607		-	amount not to exceed $3,000 for an individual or $6,000 for a married
608		-	couple filing a joint return; or (2) amounts received as income earned
609		-	from assets in a first-time home buyer savings account.
610		-	(d) There shall be added to or subtracted from federal adjusted
611		-	gross income the taxpayer's share, as beneficiary of an estate or trust, of
612		-	the Kansas fiduciary adjustment determined under K.S.A. 79-32,135,
613		-	and amendments thereto.
614		-	(e) The amount of modifications required to be made under this
615		-	section by a partner which relates to items of income, gain, loss,
616		-	deduction or credit of a partnership shall be determined under K.S.A.
617		-	79-32,131, and amendments thereto, to the extent that such items affect
618		-	federal adjusted gross income of the partner.
619		-	Sec. 6. K.S.A. 2023 Supp. 79-32,119 is hereby amended to read as
620		-	follows: 79-32,119. (a) The Kansas standard deduction of an individual,
621		-	including a husband and wife who are either both residents or who file
622		-	a joint return as if both were residents, shall be equal to the sum of the
623		-	standard deduction amount allowed pursuant to this section, and the
624		-	additional standard deduction amount allowed pursuant to this section
625		-	for each such deduction allowable to such individual or to such
626		-	husband and wife under the federal internal revenue code.
627		-	(b) For tax year 1998, and all tax years thereafter, the additional
628		-	standard deduction amount shall be as follows: Single individual and
629		-	head of household filing status, $850; and married filing status, $700.
630		-	(c) (1) For tax year 2013 through tax year 2020, the standard
631		-	deduction amount of an individual, including husband and wife who
632		-	are either both residents or who file a joint return as if both were
633		-	residents, shall be as follows: Single individual filing status, $3,000;
634		-	married filing status, $7,500; and head of household filing status,
635		-	$5,500.
636		-	(2) For tax year 2021, and all tax years thereafter, the standard
637		-	deduction amount of an individual, including husband and wife who
638		-	are either both residents or who file a joint return as if both were
639		-	residents, shall be as follows: Single individual filing status, $3,500;
640		-	married filing status, $8,000; and head of household filing status,
641		-	$6,000.
642		-	(3) In the case of tax year 2024, and all tax years thereafter, the
643		-	amounts prescribed in paragraph (2) shall be increased by an amount
644		-	equal to such amount multiplied by the cost-of-living adjustment
645		-	determined under section 1(f)(3) of the federal internal revenue code
646		-	for the calendar year in which the taxable year commences.
647		-	(d) For purposes of this section, the federal standard deduction
648		-	allowable to a husband and wife filing separate Kansas income tax
649		-	returns shall be determined on the basis that separate federal returns
650		-	were filed, and the federal standard deduction of a husband and wife
651		-	filing a joint Kansas income tax return shall be determined on the basis
652		-	that a joint federal income tax return was filed.
653		-	Sec. 7. K.S.A. 2023 Supp. 79-32,121 is hereby amended to read as
654		-	follows: 79-32,121. (a) For tax year 2024, and all tax years thereafter,
655		-	an individual shall be allowed a Kansas exemption of $2,250 $2,300
656		-	for each exemption for which such individual is entitled to a deduction
657		-	for the taxable year for federal income tax purposes.
658		-	(b) In addition to the exemptions provided in subsection (a), any
659		-	individual who has been honorably discharged from active service in
660		-	any branch of the armed forces of the United States and who is certified
661		-	by the United States department of veterans affairs or its successor to
662		-	be in receipt of disability compensation at the 100% rate, if the
663		-	disability is permanent and was sustained through military action or
664		-	accident or resulted from disease contracted while in such active
665		-	service, such individual shall be allowed an additional Kansas HOUSE BILL No. 2284—page 12
666		-	exemption of $2,250 in the amount prescribed in subsection (a)
667		-	including any increases provided for pursuant to subsection (c) for tax
668		-	year 2023 2024 and all tax years thereafter.
669		-	(c) In the case of tax year 2025, and all tax years thereafter, the
670		-	amount prescribed in subsection (a) shall be increased by an amount
671		-	equal to such amount multiplied by the cost-of-living adjustment
672		-	determined under section 1(f)(3) of the federal internal revenue code
673		-	for the calendar year in which the taxable year commences.
674		-	Sec. 8. K.S.A. 2023 Supp. 79-3603 is hereby amended to read as
675		-	follows: 79-3603. For the privilege of engaging in the business of
676		-	selling tangible personal property at retail in this state or rendering or
677		-	furnishing any of the services taxable under this act, there is hereby
678		-	levied and there shall be collected and paid a tax at the rate of 6.5%. On
679		-	and after January 1, 2023, 17% and on and after January 1, 2025 April
680		-	1, 2024, 18% of the tax rate imposed pursuant to this section and the
681		-	rate provided in K.S.A. 2023 Supp. 79-3603d, and amendments thereto,
682		-	shall be levied for the state highway fund, the state highway fund
683		-	purposes and those purposes specified in K.S.A. 68-416, and
684		-	amendments thereto, and all revenue collected and received from such
685		-	tax levy shall be deposited in the state highway fund.
686		-	Within a redevelopment district established pursuant to K.S.A. 74-
687		-	8921, and amendments thereto, there is hereby levied and there shall be
688		-	collected and paid an additional tax at the rate of 2% until the earlier of
689		-	the date the bonds issued to finance or refinance the redevelopment
690		-	project have been paid in full or the final scheduled maturity of the first
691		-	series of bonds issued to finance any part of the project.
692		-	Such tax shall be imposed upon:
693		-	(a) The gross receipts received from the sale of tangible personal
694		-	property at retail within this state;
695		-	(b) the gross receipts from intrastate, interstate or international
696		-	telecommunications services and any ancillary services sourced to this
697		-	state in accordance with K.S.A. 79-3673, and amendments thereto,
698		-	except that telecommunications service does not include: (1) Any
699		-	interstate or international 800 or 900 service; (2) any interstate or
700		-	international private communications service as defined in K.S.A. 79-
701		-	3673, and amendments thereto; (3) any value-added nonvoice data
702		-	service; (4) any telecommunication service to a provider of
703		-	telecommunication services which will be used to render
704		-	telecommunications services, including carrier access services; or (5)
705		-	any service or transaction defined in this section among entities
706		-	classified as members of an affiliated group as provided by section
707		-	1504 of the federal internal revenue code of 1986, as in effect on
708		-	January 1, 2001;
709		-	(c) the gross receipts from the sale or furnishing of gas, water,
710		-	electricity and heat, which sale is not otherwise exempt from taxation
711		-	under the provisions of this act, and whether furnished by municipally
712		-	or privately owned utilities, except that, on and after January 1, 2006,
713		-	for sales of gas, electricity and heat delivered through mains, lines or
714		-	pipes to residential premises for noncommercial use by the occupant of
715		-	such premises, and for agricultural use and also, for such use, all sales
716		-	of propane gas, the state rate shall be 0%; and for all sales of propane
717		-	gas, LP gas, coal, wood and other fuel sources for the production of
718		-	heat or lighting for noncommercial use of an occupant of residential
719		-	premises, the state rate shall be 0%, but such tax shall not be levied and
720		-	collected upon the gross receipts from: (1) The sale of a rural water
721		-	district benefit unit; (2) a water system impact fee, system enhancement
722		-	fee or similar fee collected by a water supplier as a condition for
723		-	establishing service; or (3) connection or reconnection fees collected by
724		-	a water supplier; HOUSE BILL No. 2284—page 13
725		-	(d) the gross receipts from the sale of meals or drinks furnished at
726		-	any private club, drinking establishment, catered event, restaurant,
727		-	eating house, dining car, hotel, drugstore or other place where meals or
728		-	drinks are regularly sold to the public;
729		-	(e) the gross receipts from the sale of admissions to any place
730		-	providing amusement, entertainment or recreation services including
731		-	admissions to state, county, district and local fairs, but such tax shall
732		-	not be levied and collected upon the gross receipts received from sales
733		-	of admissions to any cultural and historical event which occurs
734		-	triennially;
735		-	(f) the gross receipts from the operation of any coin-operated
736		-	device dispensing or providing tangible personal property, amusement
737		-	or other services except laundry services, whether automatic or
738		-	manually operated;
739		-	(g) the gross receipts from the service of renting of rooms by
740		-	hotels, as defined by K.S.A. 36-501, and amendments thereto, or by
741		-	accommodation brokers, as defined by K.S.A. 12-1692, and
742		-	amendments thereto, but such tax shall not be levied and collected upon
743		-	the gross receipts received from sales of such service to the federal
744		-	government and any agency, officer or employee thereof in association
745		-	with the performance of official government duties;
746		-	(h) the gross receipts from the service of renting or leasing of
747		-	tangible personal property except such tax shall not apply to the renting
748		-	or leasing of machinery, equipment or other personal property owned
749		-	by a city and purchased from the proceeds of industrial revenue bonds
750		-	issued prior to July 1, 1973, in accordance with the provisions of
751		-	K.S.A. 12-1740 through 12-1749, and amendments thereto, and any
752		-	city or lessee renting or leasing such machinery, equipment or other
753		-	personal property purchased with the proceeds of such bonds who shall
754		-	have paid a tax under the provisions of this section upon sales made
755		-	prior to July 1, 1973, shall be entitled to a refund from the sales tax
756		-	refund fund of all taxes paid thereon;
757		-	(i) the gross receipts from the rendering of dry cleaning, pressing,
758		-	dyeing and laundry services except laundry services rendered through a
759		-	coin-operated device whether automatic or manually operated;
760		-	(j) the gross receipts from the rendering of the services of washing
761		-	and washing and waxing of vehicles;
762		-	(k) the gross receipts from cable, community antennae and other
763		-	subscriber radio and television services;
764		-	(l) (1) except as otherwise provided by paragraph (2), the gross
765		-	receipts received from the sales of tangible personal property to all
766		-	contractors, subcontractors or repairmen for use by them in erecting
767		-	structures, or building on, or otherwise improving, altering, or repairing
768		-	real or personal property.
769		-	(2) Any such contractor, subcontractor or repairman who
770		-	maintains an inventory of such property both for sale at retail and for
771		-	use by them for the purposes described by paragraph (1) shall be
772		-	deemed a retailer with respect to purchases for and sales from such
773		-	inventory, except that the gross receipts received from any such sale,
774		-	other than a sale at retail, shall be equal to the total purchase price paid
775		-	for such property and the tax imposed thereon shall be paid by the
776		-	deemed retailer;
777		-	(m) the gross receipts received from fees and charges by public
778		-	and private clubs, drinking establishments, organizations and
779		-	businesses for participation in sports, games and other recreational
780		-	activities, but such tax shall not be levied and collected upon the gross
781		-	receipts received from: (1) Fees and charges by any political
782		-	subdivision, by any organization exempt from property taxation
783		-	pursuant to K.S.A. 79-201 Ninth, and amendments thereto, or by any HOUSE BILL No. 2284—page 14
784		-	youth recreation organization exclusively providing services to persons
785		-	18 years of age or younger which is exempt from federal income
786		-	taxation pursuant to section 501(c)(3) of the federal internal revenue
787		-	code of 1986, for participation in sports, games and other recreational
788		-	activities; and (2) entry fees and charges for participation in a special
789		-	event or tournament sanctioned by a national sporting association to
790		-	which spectators are charged an admission which is taxable pursuant to
791		-	subsection (e);
792		-	(n) the gross receipts received from dues charged by public and
793		-	private clubs, drinking establishments, organizations and businesses,
794		-	payment of which entitles a member to the use of facilities for
795		-	recreation or entertainment, but such tax shall not be levied and
796		-	collected upon the gross receipts received from: (1) Dues charged by
797		-	any organization exempt from property taxation pursuant to K.S.A. 79-
798		-	201 Eighth and Ninth, and amendments thereto; and (2) sales of
799		-	memberships in a nonprofit organization which is exempt from federal
800		-	income taxation pursuant to section 501(c)(3) of the federal internal
801		-	revenue code of 1986, and whose purpose is to support the operation of
802		-	a nonprofit zoo;
803		-	(o) the gross receipts received from the isolated or occasional sale
804		-	of motor vehicles or trailers but not including: (1) The transfer of motor
805		-	vehicles or trailers by a person to a corporation or limited liability
806		-	company solely in exchange for stock securities or membership interest
807		-	in such corporation or limited liability company; (2) the transfer of
808		-	motor vehicles or trailers by one corporation or limited liability
809		-	company to another when all of the assets of such corporation or
810		-	limited liability company are transferred to such other corporation or
811		-	limited liability company; or (3) the sale of motor vehicles or trailers
812		-	which are subject to taxation pursuant to the provisions of K.S.A. 79-
813		-	5101 et seq., and amendments thereto, by an immediate family member
814		-	to another immediate family member. For the purposes of paragraph
815		-	(3), immediate family member means lineal ascendants or descendants,
816		-	and their spouses. Any amount of sales tax paid pursuant to the Kansas
817		-	retailers sales tax act on the isolated or occasional sale of motor
818		-	vehicles or trailers on and after July 1, 2004, which the base for
819		-	computing the tax was the value pursuant to K.S.A. 79-5105(a), (b)(1)
820		-	and (b)(2), and amendments thereto, when such amount was higher
821		-	than the amount of sales tax which would have been paid under the law
822		-	as it existed on June 30, 2004, shall be refunded to the taxpayer
823		-	pursuant to the procedure prescribed by this section. Such refund shall
824		-	be in an amount equal to the difference between the amount of sales tax
825		-	paid by the taxpayer and the amount of sales tax which would have
826		-	been paid by the taxpayer under the law as it existed on June 30, 2004.
827		-	Each claim for a sales tax refund shall be verified and submitted not
828		-	later than six months from the effective date of this act to the director
829		-	of taxation upon forms furnished by the director and shall be
830		-	accompanied by any additional documentation required by the director.
831		-	The director shall review each claim and shall refund that amount of
832		-	tax paid as provided by this act. All such refunds shall be paid from the
833		-	sales tax refund fund, upon warrants of the director of accounts and
834		-	reports pursuant to vouchers approved by the director of taxation or the
835		-	director's designee. No refund for an amount less than $10 shall be paid
836		-	pursuant to this act. In determining the base for computing the tax on
837		-	such isolated or occasional sale, the fair market value of any motor
838		-	vehicle or trailer traded in by the purchaser to the seller may be
839		-	deducted from the selling price;
840		-	(p) the gross receipts received for the service of installing or
841		-	applying tangible personal property which when installed or applied is
842		-	not being held for sale in the regular course of business, and whether or HOUSE BILL No. 2284—page 15
843		-	not such tangible personal property when installed or applied remains
844		-	tangible personal property or becomes a part of real estate, except that
845		-	no tax shall be imposed upon the service of installing or applying
846		-	tangible personal property in connection with the original construction
847		-	of a building or facility, the original construction, reconstruction,
848		-	restoration, remodeling, renovation, repair or replacement of a
849		-	residence or the construction, reconstruction, restoration, replacement
850		-	or repair of a bridge or highway.
851		-	For the purposes of this subsection:
852		-	(1) "Original construction" means the first or initial construction
853		-	of a new building or facility. The term "original construction" shall
854		-	include the addition of an entire room or floor to any existing building
855		-	or facility, the completion of any unfinished portion of any existing
856		-	building or facility and the restoration, reconstruction or replacement of
857		-	a building, facility or utility structure damaged or destroyed by fire,
858		-	flood, tornado, lightning, explosion, windstorm, ice loading and
859		-	attendant winds, terrorism or earthquake, but such term, except with
860		-	regard to a residence, shall not include replacement, remodeling,
861		-	restoration, renovation or reconstruction under any other
862		-	circumstances;
863		-	(2) "building" means only those enclosures within which
864		-	individuals customarily are employed, or which are customarily used to
865		-	house machinery, equipment or other property, and including the land
866		-	improvements immediately surrounding such building;
867		-	(3) "facility" means a mill, plant, refinery, oil or gas well, water
868		-	well, feedlot or any conveyance, transmission or distribution line of any
869		-	cooperative, nonprofit, membership corporation organized under or
870		-	subject to the provisions of K.S.A. 17-4601 et seq., and amendments
871		-	thereto, or municipal or quasi-municipal corporation, including the land
872		-	improvements immediately surrounding such facility;
873		-	(4) "residence" means only those enclosures within which
874		-	individuals customarily live;
875		-	(5) "utility structure" means transmission and distribution lines
876		-	owned by an independent transmission company or cooperative, the
877		-	Kansas electric transmission authority or natural gas or electric public
878		-	utility; and
879		-	(6) "windstorm" means straight line winds of at least 80 miles per
880		-	hour as determined by a recognized meteorological reporting agency or
881		-	organization;
882		-	(q) the gross receipts received for the service of repairing,
883		-	servicing, altering or maintaining tangible personal property which
884		-	when such services are rendered is not being held for sale in the regular
885		-	course of business, and whether or not any tangible personal property is
886		-	transferred in connection therewith. The tax imposed by this subsection
887		-	shall be applicable to the services of repairing, servicing, altering or
888		-	maintaining an item of tangible personal property which has been and
889		-	is fastened to, connected with or built into real property;
890		-	(r) the gross receipts from fees or charges made under service or
891		-	maintenance agreement contracts for services, charges for the providing
892		-	of which are taxable under the provisions of subsection (p) or (q);
893		-	(s) on and after January 1, 2005, the gross receipts received from
894		-	the sale of prewritten computer software and the sale of the services of
895		-	modifying, altering, updating or maintaining prewritten computer
896		-	software, whether the prewritten computer software is installed or
897		-	delivered electronically by tangible storage media physically
898		-	transferred to the purchaser or by load and leave;
899		-	(t) the gross receipts received for telephone answering services;
900		-	(u) the gross receipts received from the sale of prepaid calling
901		-	service and prepaid wireless calling service as defined in K.S.A. 79- HOUSE BILL No. 2284—page 16
902		-	3673, and amendments thereto;
903		-	(v) all sales of bingo cards, bingo faces and instant bingo tickets
904		-	by licensees under K.S.A. 75-5171 et seq., and amendments thereto,
905		-	shall be exempt from taxes imposed pursuant to this section;
906		-	(w) all sales of charitable raffle tickets in accordance with K.S.A.
907		-	75-5171 et seq., and amendments thereto, shall be exempt from taxes
908		-	imposed pursuant to this section; and
909		-	(x) commencing on January 1, 2023, and thereafter, the state rate
910		-	on the gross receipts from the sale of food and food ingredients shall be
911		-	as set forth in K.S.A. 2023 Supp. 79-3603d, and amendments thereto.
912		-	Sec. 9. K.S.A. 2023 Supp. 79-3603d is hereby amended to read as
913		-	follows: 79-3603d. (a) There is hereby levied and there shall be
914		-	collected and paid a tax upon the gross receipts from the sale of food
915		-	and food ingredients. The rate of tax shall be as follows:
916		-	(1) Commencing on January 1, 2023, at the rate of 4%;
917		-	(2) commencing on January 1, 2024, at the rate of 2%; and
918		-	(3) commencing on January 1, 2025 April 1, 2024, and thereafter,
919		-	at the rate of 0%.
920		-	(b) The provisions of this section shall not apply to prepared food
921		-	unless sold without eating utensils provided by the seller and described
922		-	below:
923		-	(1) Food sold by a seller whose proper primary NAICS
924		-	classification is manufacturing in sector 311, except subsector 3118
925		-	(bakeries);
926		-	(2) (A) food sold in an unheated state by weight or volume as a
927		-	single item; or
928		-	(B) only meat or seafood sold in an unheated state by weight or
929		-	volume as a single item;
930		-	(3) bakery items, including bread, rolls, buns, biscuits, bagels,
931		-	croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins,
932		-	bars, cookies and tortillas; or
933		-	(4) food sold that ordinarily requires additional cooking, as
934		-	opposed to just reheating, by the consumer prior to consumption.
935		-	(c) The provisions of this section shall be a part of and
936		-	supplemental to the Kansas retailers' sales tax act.
937		-	Sec. 10. K.S.A. 2023 Supp. 79-3620 is hereby amended to read as
938		-	follows: 79-3620. (a) All revenue collected or received by the director
939		-	of taxation from the taxes imposed by this act shall be remitted to the
940		-	state treasurer in accordance with the provisions of K.S.A. 75-4215,
941		-	and amendments thereto. Upon receipt of each such remittance, the
942		-	state treasurer shall deposit the entire amount in the state treasury, less
943		-	amounts withheld as provided in subsection (b) and amounts credited
944		-	as provided in subsections (c), (d) and (e), to the credit of the state
945		-	general fund.
946		-	(b) A refund fund, designated as "sales tax refund fund" not to
947		-	exceed $100,000 shall be set apart and maintained by the director from
948		-	sales tax collections and estimated tax collections and held by the state
949		-	treasurer for prompt payment of all sales tax refunds. Such fund shall
950		-	be in such amount, within the limit set by this section, as the director
951		-	shall determine is necessary to meet current refunding requirements
952		-	under this act. In the event such fund as established by this section is, at
953		-	any time, insufficient to provide for the payment of refunds due
954		-	claimants thereof, the director shall certify the amount of additional
955		-	funds required to the director of accounts and reports who shall
956		-	promptly transfer the required amount from the state general fund to the
957		-	sales tax refund fund, and notify the state treasurer, who shall make
958		-	proper entry in the records.
959		-	(c) (1) On January 1, 2023, the state treasurer shall credit 17% of
960		-	the revenue collected and received from the tax imposed by K.S.A. 79- HOUSE BILL No. 2284—page 17
961		-	3603, and amendments thereto, at the rates provided in K.S.A. 79-3603,
962		-	and amendments thereto, and K.S.A. 2023 Supp. 79-3603d, and
963		-	amendments thereto, and deposited as provided by subsection (a),
964		-	exclusive of amounts credited pursuant to subsection (d), in the state
965		-	highway fund.
966		-	(2) On January 1, 2025 April 1, 2024, and thereafter, the state
967		-	treasurer shall credit 18% of the revenue collected and received from
968		-	the tax imposed by K.S.A. 79-3603, and amendments thereto, at the
969		-	rates provided in K.S.A. 79-3603, and amendments thereto, and K.S.A.
970		-	2023 Supp. 79-3603d, and amendments thereto, and deposited as
971		-	provided by subsection (a), exclusive of amounts credited pursuant to
972		-	subsection (d), in the state highway fund.
973		-	(d) The state treasurer shall credit all revenue collected or received
974		-	from the tax imposed by K.S.A. 79-3603, and amendments thereto, as
975		-	certified by the director, from taxpayers doing business within that
976		-	portion of a STAR bond project district occupied by a STAR bond
977		-	project or taxpayers doing business with such entity financed by a
978		-	STAR bond project as defined in K.S.A. 12-17,162, and amendments
979		-	thereto, that was determined by the secretary of commerce to be of
980		-	statewide as well as local importance or will create a major tourism
981		-	area for the state or the project was designated as a STAR bond project
982		-	as defined in K.S.A. 12-17,162, and amendments thereto, to the city
983		-	bond finance fund, which fund is hereby created. The provisions of this
984		-	subsection shall expire when the total of all amounts credited hereunder
985		-	and under K.S.A. 79-3710(d), and amendments thereto, is sufficient to
986		-	retire the special obligation bonds issued for the purpose of financing
987		-	all or a portion of the costs of such STAR bond project.
988		-	(e) All revenue certified by the director of taxation as having been
989		-	collected or received from the tax imposed by K.S.A. 79-3603(c), and
990		-	amendments thereto, on the sale or furnishing of gas, water, electricity
991		-	and heat for use or consumption within the intermodal facility district
992		-	described in this subsection, shall be credited by the state treasurer to
993		-	the state highway fund. Such revenue may be transferred by the
994		-	secretary of transportation to the rail service improvement fund
995		-	pursuant to law. The provisions of this subsection shall take effect upon
996		-	certification by the secretary of transportation that a notice to proceed
997		-	has been received for the construction of the improvements within the
998		-	intermodal facility district, but not later than December 31, 2010, and
999		-	shall expire when the secretary of revenue determines that the total of
1000		-	all amounts credited hereunder and pursuant to K.S.A. 79-3710(e), and
1001		-	amendments thereto, is equal to $53,300,000, but not later than
1002		-	December 31, 2045. Thereafter, all revenues shall be collected and
1003		-	distributed in accordance with applicable law. For all tax reporting
1004		-	periods during which the provisions of this subsection are in effect,
1005		-	none of the exemptions contained in K.S.A. 79-3601 et seq., and
1006		-	amendments thereto, shall apply to the sale or furnishing of any gas,
1007		-	water, electricity and heat for use or consumption within the intermodal
1008		-	facility district. As used in this subsection, "intermodal facility district"
1009		-	shall consist of an intermodal transportation area as defined by K.S.A.
1010		-	12-1770a(oo), and amendments thereto, located in Johnson county
1011		-	within the polygonal-shaped area having Waverly Road as the eastern
1012		-	boundary, 191
1013		-	st
1014		-	Street as the southern boundary, Four Corners Road as
1015		-	the western boundary, and Highway 56 as the northern boundary, and
1016		-	the polygonal-shaped area having Poplar Road as the eastern boundary,
1017		-	183
1018		-	rd
1019		-	Street as the southern boundary, Waverly Road as the western
1020		-	boundary, and the BNSF mainline track as the northern boundary, that
1021		-	includes capital investment in an amount exceeding $150 million for
1022		-	the construction of an intermodal facility to handle the transfer, storage
1023		-	and distribution of freight through railway and trucking operations. HOUSE BILL No. 2284—page 18
1024		-	Sec. 11. K.S.A. 2023 Supp. 79-3703 is hereby amended to read as
1025		-	follows: 79-3703. (a) There is hereby levied and there shall be collected
1026		-	from every person in this state a tax or excise for the privilege of using,
1027		-	storing, or consuming within this state any article of tangible personal
1028		-	property. Such tax shall be levied and collected in an amount equal to
1029		-	the consideration paid by the taxpayer multiplied by the rate of 6.5%.
1030		-	(b) Commencing on January 1, 2023, and thereafter, the state rate
1031		-	on the amount equal to the consideration paid by the taxpayer from the
1032		-	sale of food and food ingredients as provided in K.S.A. 79-3603, and
1033		-	amendments thereto, shall be as set forth in K.S.A. 2023 Supp. 79-
1034		-	3603d, and amendments thereto.
1035		-	(c) On and after January 1, 2023, 17% and on and after January 1,
1036		-	2025 April 1, 2024, 18% of the tax rate imposed pursuant to this section
1037		-	and the rate provided in K.S.A. 2023 Supp. 79-3603d, and amendments
1038		-	thereto, shall be levied for the state highway fund, the state highway
1039		-	fund purposes and those purposes specified in K.S.A. 68-416, and
1040		-	amendments thereto, and all revenue collected and received from such
1041		-	tax levy shall be deposited in the state highway fund.
1042		-	(d) Within a redevelopment district established pursuant to K.S.A.
1043		-	74-8921, and amendments thereto, there is hereby levied and there shall
1044		-	be collected and paid an additional tax of 2% until the earlier of: (1)
1045		-	The date the bonds issued to finance or refinance the redevelopment
1046		-	project undertaken in the district have been paid in full; or (2) the final
1047		-	scheduled maturity of the first series of bonds issued to finance the
1048		-	redevelopment project.
1049		-	(e) All property purchased or leased within or without this state
1050		-	and subsequently used, stored or consumed in this state shall be subject
1051		-	to the compensating tax if the same property or transaction would have
1052		-	been subject to the Kansas retailers' sales tax had the transaction been
1053		-	wholly within this state.
1054		-	Sec. 12. K.S.A. 2023 Supp. 79-3710 is hereby amended to read as
1055		-	follows: 79-3710. (a) All revenue collected or received by the director
1056		-	under the provisions of this act shall be remitted to the state treasurer in
1057		-	accordance with the provisions of K.S.A. 75-4215, and amendments
1058		-	thereto. Upon receipt of each such remittance, the state treasurer shall
1059		-	deposit the entire amount in the state treasury, less amounts set apart as
1060		-	provided in subsection (b) and amounts credited as provided in
1061		-	subsection (c), (d) and (e), to the credit of the state general fund.
1062		-	(b) A revolving fund, designated as "compensating tax refund
1063		-	fund" not to exceed $10,000 shall be set apart and maintained by the
1064		-	director from compensating tax collections and estimated tax
1065		-	collections and held by the state treasurer for prompt payment of all
1066		-	compensating tax refunds. Such fund shall be in such amount, within
1067		-	the limit set by this section, as the director shall determine is necessary
1068		-	to meet current refunding requirements under this act.
1069		-	(c) (1) On January 1, 2023, the state treasurer shall credit 17% of
1070		-	the revenue collected and received from the tax imposed by K.S.A. 79-
1071		-	3703, and amendments thereto, at the rates provided in K.S.A. 79-3703,
1072		-	and amendments thereto, and K.S.A. 2023 Supp. 79-3603d, and
1073		-	amendments thereto, and deposited as provided by subsection (a),
1074		-	exclusive of amounts credited pursuant to subsection (d), in the state
1075		-	highway fund.
1076		-	(2) On January 1, 2025 April 1, 2024, and thereafter, the state
1077		-	treasurer shall credit 18% of the revenue collected and received from
1078		-	the tax imposed by K.S.A. 79-3703, and amendments thereto, at the
1079		-	rates provided in K.S.A. 79-3703, and amendments thereto, and K.S.A.
1080		-	2023 Supp. 79-3603d, and amendments thereto, and deposited as
1081		-	provided by subsection (a), exclusive of amounts credited pursuant to
1082		-	subsection (d), in the state highway fund. HOUSE BILL No. 2284—page 19
1083		-	(d) The state treasurer shall credit all revenue collected or received
1084		-	from the tax imposed by K.S.A. 79-3703, and amendments thereto, as
1085		-	certified by the director, from taxpayers doing business within that
1086		-	portion of a redevelopment district occupied by a redevelopment
1087		-	project that was determined by the secretary of commerce to be of
1088		-	statewide as well as local importance or will create a major tourism
1089		-	area for the state as defined in K.S.A. 12-1770a, and amendments
1090		-	thereto, to the city bond finance fund created by K.S.A. 79-3620(d),
1091		-	and amendments thereto. The provisions of this subsection shall expire
1092		-	when the total of all amounts credited hereunder and under K.S.A. 79-
1093		-	3620(d), and amendments thereto, is sufficient to retire the special
1094		-	obligation bonds issued for the purpose of financing all or a portion of
1095		-	the costs of such redevelopment project.
1096		-	This subsection shall not apply to a project designated as a special
1097		-	bond project as defined in K.S.A. 12-1770a(z), and amendments
1098		-	thereto.
1099		-	(e) All revenue certified by the director of taxation as having been
1100		-	collected or received from the tax imposed by K.S.A. 79-3603(c), and
1101		-	amendments thereto, on the sale or furnishing of gas, water, electricity
1102		-	and heat for use or consumption within the intermodal facility district
1103		-	described in this subsection, shall be credited by the state treasurer to
1104		-	the state highway fund. Such revenue may be transferred by the
1105		-	secretary of transportation to the rail service improvement fund
1106		-	pursuant to law. The provisions of this subsection shall take effect upon
1107		-	certification by the secretary of transportation that a notice to proceed
1108		-	has been received for the construction of the improvements within the
1109		-	intermodal facility district, but not later than December 31, 2010, and
1110		-	shall expire when the secretary of revenue determines that the total of
1111		-	all amounts credited hereunder and pursuant to K.S.A. 79-3620(e), and
1112		-	amendments thereto, is equal to $53,300,000, but not later than
1113		-	December 31, 2045. Thereafter, all revenues shall be collected and
1114		-	distributed in accordance with applicable law. For all tax reporting
1115		-	periods during which the provisions of this subsection are in effect,
1116		-	none of the exemptions contained in K.S.A. 79-3601 et seq., and
1117		-	amendments thereto, shall apply to the sale or furnishing of any gas,
1118		-	water, electricity and heat for use or consumption within the intermodal
1119		-	facility district. As used in this subsection, "intermodal facility district"
1120		-	shall consist of an intermodal transportation area as defined by K.S.A.
1121		-	12-1770a(oo), and amendments thereto, located in Johnson county
1122		-	within the polygonal-shaped area having Waverly Road as the eastern
1123		-	boundary, 191
1124		-	st
1125		-	Street as the southern boundary, Four Corners Road as
1126		-	the western boundary, and Highway 56 as the northern boundary, and
1127		-	the polygonal-shaped area having Poplar Road as the eastern boundary,
1128		-	183
1129		-	rd
1130		-	Street as the southern boundary, Waverly Road as the western
1131		-	boundary, and the BNSF mainline track as the northern boundary, that
1132		-	includes capital investment in an amount exceeding $150 million for
1133		-	the construction of an intermodal facility to handle the transfer, storage
1134		-	and distribution of freight through railway and trucking operations.
1135		-	Sec. 13. K.S.A. 79-1107 and 79-1108 and K.S.A. 2023 Supp. 79-
1136		-	201x, 79-32,110, 79-32,117, 79-32,119, 79-32,121, 79-3603, 79-3603d,
1137		-	79-3620, 79-3703 and 79-3710 are hereby repealed. HOUSE BILL No. 2284—page 20
1138		-	Sec. 14. This act shall take effect and be in force from and after its
1139		-	publication in the Kansas register.
1140		-	I hereby certify that the above BILL originated in the
1141		-	HOUSE, and was adopted by that body
1142		-
1143		-	HOUSE adopted
1144		-	Conference Committee Report
1145		-
1146		-	Speaker of the House.
1147		-
1148		-	Chief Clerk of the House.
1149		-	Passed the SENATE
1150		-	as amended
1151		-	SENATE adopted
1152		-	Conference Committee Report
1153		-
1154		-	President of the Senate.
1155		-
1156		-	Secretary of the Senate.
1157		-	APPROVED
1158		-
1159		-
1160		-	Governor.
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