Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor
Division of the Budget
March 7, 2023
The Honorable Adam Smith, Chairperson
House Committee on Taxation
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2420 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2420 is
respectfully submitted to your committee.
HB 2420 would establish withholding requirements for certain employees who work in
multiple states and determine employer penalties for not complying with these requirements. This
bill would exempt certain employees who perform employment duties in more than one state from
income tax withholding and reporting requirements unless the earnings occurred in the state of the
employee’s residence, or in a state that the employee performed employment duties for more than
30 days during the calendar year.
The Department of Revenue indicates HB 2420 has the potential to increase State General
Fund revenue by negligible amounts beginning in FY 2024. No accurate data exists to estimate
how many days non-resident employees work in Kansas or the amount of wages earned while in
Kansas. The Department indicates that the bill would require $600 from the State General Fund
in FY 2022 to update the withholding tax guide. Any fiscal effect associated with HB 2420 is not
reflected in The FY 2024 Governor’s Budget Report.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue