Kansas 2023-2024 Regular Session

Kansas House Bill HB2411

Introduced
2/13/23  
Refer
2/13/23  

Caption

Decreasing the penalties for employer failing to timely remit employee withholding income taxes.

Impact

The implications of HB2411 on state tax laws are significant, as it reduces the financial burden on employers who struggle with timely tax remittance. By levying reduced penalties—particularly for those who show a reasonable cause for their failings—the bill seeks to foster a more supportive compliance environment for businesses in Kansas. This change is likely to encourage employers to maintain better practices regarding tax collection and remittance, ultimately benefiting state revenue streams in a more compliant manner.

Summary

House Bill 2411 focuses on modifying the penalties associated with the failure of employers to timely remit employee withholding income taxes. The bill aims to decrease these penalties and create a more lenient framework for employers who are unable to meet the remittance deadlines. By amending K.S.A. 79-32,107, the legislation introduces new specifications that emphasize reasonable causes for non-compliance and enables tax authorities to waive penalties under certain conditions.

Contention

Despite the apparent benefits, the bill has been subject to debate among legislators. Critics argue that reducing penalties could potentially incentivize negligence among employers regarding their tax obligations. There are concerns that a more lenient approach may lead to broader issues of tax compliance across the state, particularly if employers feel less urgency to adhere to established timelines. Proponents, however, counter that this approach balances accountability with a practical understanding of the challenges faced by businesses.

Companion Bills

No companion bills found.

Previously Filed As

KS SB127

House Substitute for SB 127 by Committee on Taxation - Reducing penalties for the late filing of or the failure to file property tax statements listing property for assessment and the discovery of escaped property and reporting changes after initial statement, decreasing the penalties for failing to timely remit withholding income taxes of employees by employers and providing a sales tax exemption for sales of property and services used in the provision of communications services.

KS SB8

Reducing penalties for the late filing of and the failure to file personal property renditions and the discovery of escaped personal property, requiring filing only an initial statement with county appraiser for personal property, decreasing the penalties for failing to timely remit withholding income taxes of employees by employers, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar year 2024, modifying and prescribing the contents of the revenue neutral rate public hearing notice, providing two prior years' values on the annual valuation notice, allowing for filing of an appraisal by a certified residential real property appraiser for appeal purposes, discontinuing the prohibition of paying taxes under protest after a valuation notice appeal, accounting for adverse influences in the valuation of agricultural land, including properties used for registered agritourism activities as land devoted to agricultural use for purposes of classification, providing a property tax exemption for certain business property operated in competition with property owned or operated by a governmental entity, providing income tax subtraction modifications to permit the carryforward of certain net operating losses for individuals and for the federal work opportunity tax credit and the employee retention credit disallowances, increasing the tax credit amount for adoption expenses and making the credit refundable, increasing the amount of income tax credits available for purchases under the disability employment act from qualified vendors, continuing in existence such credits beyond tax year 2023 and defining qualifying vendors and eligible employees, establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities, clarifying the determination of taxable income of an electing pass-through entity and providing for the passing through of tax credits to electing pass-through entity owners for purposes of the salt parity act, excluding social security payments from household income and expanding eligibility for seniors and disabled veterans related to increased property tax homestead refund claims, providing a sales tax exemption for sales of property and services used in the provision of communications services and excluding manufacturers' coupons from the sales or selling price.

KS SB628

Employment: employer contributions: employee withholdings: credit: agricultural employees.

KS SB410

Reducing penalties for the late filing of or the failure to file statements listing personal property for assessment and the discovery of escaped personal property and reporting changes after initial statement, allowing for filing of an appraisal by a certified residential real property appraiser for appeal purposes, accounting for adverse influences in the valuation of agricultural land, including properties used for registered agritourism activities as land devoted to agricultural use for purposes of classification, providing a property tax exemption for new electric generation facilities, additions and new pollution control devices and discontinuing certain current property tax exemptions, providing that county clerks are not required to send revenue neutral rate notices to property owners of exempt property, modifying and prescribing the contents of the revenue neutral rate hearing notice, permitting a tax levy that generates the same amount of revenue as the previous year when the final assessed valuation decreases compared to the estimated assessed valuation, requiring that the governing body's vote be conducted on the same day as the commencement of the public hearing, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for calendar year 2024, providing income tax subtraction modifications for certain federal credit disallowances and the employee retention credit disallowance and to permit the carryforward of certain net operating losses, clarifying the disallowed business interest expense deduction, extending the time period for the single city port authority tax credit, decreasing penalties for failing to timely remit withholding income taxes of employees by employers, clarifying the determination of taxable income of an electing pass-through entity and providing for the passing through of tax credits to electing pass-through entity owners relating to the salt parity act, providing countywide retailers' sales tax authority for Rawlins, Marshall and Neosho counties and authorizing teleconference or video conference hearings in the small claims and expedited hearings division of the state board of tax appeals.

KS SB546

Decreasing the corporate income tax rate, discontinuing tax credits of the high performance incentive program and payroll withholding tax benefits of the promoting employment across Kansas act and repealing certain unused tax credits.

KS SB375

Employment: employer contributions: employee withholdings: COVID-19 regulatory compliance credit.

KS HB2064

Establishing the Kansas employee emergency savings account (KEESA) program to allow eligible employers to establish employee savings accounts, providing an income and privilege tax credit for certain eligible employer deposits to such employee savings accounts and providing a subtraction modification for certain employee deposits to such savings accounts.

KS HB2090

Establishing the Kansas employee emergency savings account (KEESA) program to allow eligible employers to establish employee savings accounts, providing an income and privilege tax credit for certain eligible employer deposits to such employee savings accounts and providing a subtraction modification for certain employee deposits to such savings accounts.

KS AB3029

Income taxes: credits: employment: California New Employment Credit.

KS SB352

Income taxes: withholding: real property sales.

Similar Bills

HI SB852

Relating To Taxation.

KS SB8

Reducing penalties for the late filing of and the failure to file personal property renditions and the discovery of escaped personal property, requiring filing only an initial statement with county appraiser for personal property, decreasing the penalties for failing to timely remit withholding income taxes of employees by employers, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar year 2024, modifying and prescribing the contents of the revenue neutral rate public hearing notice, providing two prior years' values on the annual valuation notice, allowing for filing of an appraisal by a certified residential real property appraiser for appeal purposes, discontinuing the prohibition of paying taxes under protest after a valuation notice appeal, accounting for adverse influences in the valuation of agricultural land, including properties used for registered agritourism activities as land devoted to agricultural use for purposes of classification, providing a property tax exemption for certain business property operated in competition with property owned or operated by a governmental entity, providing income tax subtraction modifications to permit the carryforward of certain net operating losses for individuals and for the federal work opportunity tax credit and the employee retention credit disallowances, increasing the tax credit amount for adoption expenses and making the credit refundable, increasing the amount of income tax credits available for purchases under the disability employment act from qualified vendors, continuing in existence such credits beyond tax year 2023 and defining qualifying vendors and eligible employees, establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities, clarifying the determination of taxable income of an electing pass-through entity and providing for the passing through of tax credits to electing pass-through entity owners for purposes of the salt parity act, excluding social security payments from household income and expanding eligibility for seniors and disabled veterans related to increased property tax homestead refund claims, providing a sales tax exemption for sales of property and services used in the provision of communications services and excluding manufacturers' coupons from the sales or selling price.

VA HB2643

Estimated tax; failure by individual, trust, or estate to pay.

VA SB1410

Estimated tax; failure by individual, trust, or estate to pay.

AZ HB2934

Property tax; judgment; excess payments

WV HB5025

To repeal the additional one and one-half percent interest rate for underpayments and specify an effective date

UT HB0392

Nursing Care Facility Modifications

WV HB3246

Repeal the additional one and one-half percent interest rate for underpayments