Establishing the Kansas legal tender act and providing for an income tax subtraction modification for sales of specie.
Impact
The bill proposes several modifications to existing tax laws, including an income taxation subtraction for gains from the sale of specie. This is intended to facilitate and encourage the use and trade of precious metals in Kansas. By eliminating tax liabilities associated with the exchange of different forms of legal tender, including specie, the legislation aims to enhance the appeal of using gold and silver in commerce. Proponents believe this will support the state's economy and provide residents with more options for transactions.
Summary
House Bill 2405, known as the Kansas Legal Tender Act, aims to reaffirm gold and silver coins as legal tender in Kansas. It establishes a framework defining 'legal tender' and 'specie,' which includes coins and bullion with gold or silver content. The bill provides clarity on what constitutes acceptable forms of payment for debts and taxes, thereby aligning Kansas legislation with a more traditional view on currency use.
Contention
While supporters argue that HB 2405 will protect individual financial assets and promote economic independence from fiat currency systems, critics raise concerns about potential implications for monetary policy and economic instability. Detractors of the bill also caution that a shift towards gold and silver as primary agents of exchange may complicate transactions in a modern economy increasingly reliant on digital and electronic forms of payment. This tension reflects broader ideological divides regarding the role of precious metals in contemporary currency systems and state governance.
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.
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.
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.
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.
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.