Kansas 2023-2024 Regular Session

Kansas House Bill HB2844 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Session of 2024
2	2	HOUSE BILL No. 2844
3	3	By Committee on Taxation
4	4	Requested by Representative A. Smith
5	5	3-19
6	6	AN ACT concerning taxation; relating to income tax; modifying tax rates
7	7	for individuals; increasing the income limit to qualify for a subtraction
8	8	modification for social security income; increasing the Kansas standard
9	9	deduction and Kansas personal exemption and further increasing by a
10	10	cost-of-living adjustment; relating to privilege tax; decreasing the
11	11	normal tax rate; relating to property tax; increasing the extent of
12	12	exemption for residential property from the statewide school levy;
13	13	decreasing the rate of ad valorem tax imposed by a school district;
14	14	abolishing the local ad valorem tax reduction fund and the county and
15	15	city revenue sharing fund; amending K.S.A. 65-163j, 65-3306, 65-
16	16	3327, 75-2556, 79-1107, 79-1108 and 79-1479 and K.S.A. 2023 Supp.
17	17	72-5142, 74-8768, 79-201x, 79-2988, 79-32,110, 79-32,117, 79-32,119
18	18	and 79-32,121 and repealing the existing sections; also repealing
19	19	K.S.A. 19-2694, 79-2960, 79-2961, 79-2962, 79-2965, 79-2966 and 79-
20	20	2967 and K.S.A. 2023 Supp. 79-2959 and 79-2964.
21	21	Be it enacted by the Legislature of the State of Kansas:
22	22	New Section 1. On July 1, 2024, the director of accounts and reports
23	23	shall transfer all moneys in the local ad valorem tax reduction fund to the
24	24	state general fund. On July 1, 2024, all liabilities of the local ad valorem
25	25	tax reduction fund are hereby transferred to and imposed on the state
26	26	general fund, and the local ad valorem tax reduction fund is hereby
27	27	abolished.
28	28	New Sec. 2. On July 1, 2024, the director of accounts and reports
29	29	shall transfer all moneys in the county and city revenue sharing fund to the
30	30	state general fund. On July 1, 2024, all liabilities of the county and city
31	31	revenue sharing fund are hereby transferred to and imposed on the state
32	32	general fund, and the county and city revenue sharing fund is hereby
33	33	abolished.
34	34	Sec. 3. K.S.A. 65-163j is hereby amended to read as follows: 65-163j.
35	35	(a) The dedicated source of revenue for repayment of a loan to a
36	36	municipality may include service charges, connection fees, special
37	37	assessments, property taxes, grants or any other source of revenue lawfully
38	38	available to the municipality for such purpose. In order to ensure
39	39	repayment by municipalities of the amounts of loans provided under this
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75	75	act, the secretary, after consultation with the governing body of any
76	76	municipality which that receives a loan, may adopt charges to be levied
77	77	against individuals and entities served by the project. Any such charges
78	78	shall remain in effect until the total amount of the loan, and any interest
79	79	thereon, has been repaid. The charges shall, insofar as is practicable, be
80	80	equitably assessed and may be in the form of a surcharge to the existing
81	81	charges of the municipality. The governing body of any municipality
82	82	which that receives a loan under this act shall collect any charges
83	83	established by the secretary and shall pay the moneys collected therefrom
84	84	to the secretary in accordance with procedures established by the secretary.
85	85	(b) Upon the failure of a municipality to meet the repayment terms
86	86	and conditions of the agreement, the secretary may order the treasurer of
87	87	the county in which the municipality is located to pay to the secretary such
88	88	portion of the municipality's share of the local ad valorem tax reduction
89	89	fund as may be necessary to meet the terms of the agreement,
90	90	notwithstanding the provisions of K.S.A. 79-2960 and 79-2961, and
91	91	amendments thereto. Upon the issuance of such an order, the municipality
92	92	shall not be required to make the tax levy reductions otherwise required by
93	93	K.S.A. 79-2960 and 79-2961, and amendments thereto.
94	94	(c) Municipalities which that are provided with loans under this act
95	95	shall maintain project accounts in accordance with generally accepted
96	96	government accounting standards.
97	97	(d)(c) Any loans received by a municipality under the provisions of
98	98	this act shall be construed to be bonds for the purposes of K.S.A. 10-1116
99	99	and 79-5028, and amendments thereto, and the amount of such loans shall
100	100	not be included within any limitation on the bonded indebtedness of the
101	101	municipality.
102	102	Sec. 4. K.S.A. 65-3306 is hereby amended to read as follows: 65-
103	103	3306. The secretary's annual request for appropriations to the water
104	104	pollution control account shall be based on an estimate of the fiscal needs
105	105	for the ensuing budget year, less any amounts received by the secretary
106	106	from any public or private grants or contributions and moneys in such
107	107	account shall be used solely for the purposes provided for by this act.
108	108	Moneys allocated to a municipality shall be encumbered as an expenditure
109	109	of this account upon the formal letting of a contract for the improvement
110	110	notwithstanding the date on which when actual payment is made of the
111	111	state financial assistance. Any municipality may contribute moneys to the
112	112	state water pollution control account. If there are no uncommitted or
113	113	unencumbered moneys in the water pollution control account, any
114	114	municipality applying for any water pollution control project as defined in
115	115	K.S.A. 65-3302, and amendments thereto, shall as a condition of such
116	116	application certify in writing to the secretary that a contribution in the
117	117	amount of twenty-five percent (25%) of the eligible cost of such project
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161	161	will be made to the water pollution control account by such municipality
162	162	prior to formal letting of a construction contract. Upon receipt by the
163	163	secretary, each such contribution shall be retained in a subaccount of the
164	164	water pollution control account for use solely in the project for which the
165	165	municipality has made application.
166	166	Notwithstanding the provisions of K.S.A. 79-2960 and 79-2961, any
167	167	municipality applying for such a water pollution control project may make
168	168	such contribution from all or such part of its share of the local ad valorem
169	169	tax reduction fund as may be necessary for such purpose, and to the extent
170	170	such fund is pledged and used for such purpose the municipality shall not
171	171	be required to make the tax levy reductions otherwise required by K.S.A.
172	172	79-2960 and 79-2961. Taxes levied by any municipality by reason of its
173	173	failure to make such reduction in its levies shall not be subject to or be
174	174	considered in computing the aggregate limitation upon the levy of taxes by
175	175	such municipality under the provisions of K.S.A. 79-5003.
176	176	Sec. 5. K.S.A. 65-3327 is hereby amended to read as follows: 65-
177	177	3327. (a) The dedicated source of revenue for repayment of the loans may
178	178	include service charges, connection fees, special assessments, property
179	179	taxes, grants or any other source of revenue lawfully available to the
180	180	municipality for such purpose. In order to ensure repayment by
181	181	municipalities of the amounts of loans provided under K.S.A. 65-3321
182	182	through 65-3329, and amendments thereto, the secretary, after consultation
183	183	with the governing body of any municipality which receives a loan, may
184	184	adopt charges to be levied against users of the project. Any such charges
185	185	shall remain in effect until the total amount of the loan, and any interest
186	186	thereon, has been repaid. The charges shall, insofar as is practicable, be
187	187	equitably assessed and may be in the form of a surcharge to the existing
188	188	charges of the municipality. The governing body of any municipality
189	189	which receives a loan under K.S.A. 65-3321 through 65-3329, and
190	190	amendments thereto, shall collect any charges established by the secretary
191	191	and shall pay the moneys collected therefrom to the secretary in
192	192	accordance with procedures established by the secretary.
193	193	(b) Upon the failure of a municipality to meet the repayment terms
194	194	and conditions of the agreement, the secretary may order the treasurer of
195	195	the county in which the municipality is located to pay to the secretary such
196	196	portion of the municipality's share of the local ad valorem tax reduction
197	197	fund as may be necessary to meet the terms of the agreement,
198	198	notwithstanding the provisions of K.S.A. 79-2960 and 79-2961 and
199	199	amendments thereto. Upon the issuance of such an order, the municipality
200	200	shall not be required to make the tax levy reductions otherwise required by
201	201	K.S.A. 79-2960 and 79-2961 and amendments thereto.
202	202	(c) Municipalities which that are provided with loans under K.S.A.
203	203	65-3321 through 65-3329, and amendments thereto, shall maintain project
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247	247	accounts in accordance with generally accepted government accounting
248	248	standards.
249	249	(d)(c) Municipalities which that receive a grant and an allowance
250	250	under the federal act with respect to project costs for which a loan was
251	251	provided under K.S.A. 65-3321 through 65-3329, and amendments
252	252	thereto, shall promptly repay such loan to the extent of the allowance
253	253	received under the federal act.
254	254	(e)(d) Any loans received by a municipality under the provisions of
255	255	K.S.A. 65-3321 through 65-3329, and amendments thereto, shall be
256	256	construed to be bonds for the purposes of K.S.A. 10-1116 and 79-5028,
257	257	and amendments thereto, and the amount of such loans shall not be
258	258	included within any limitation on the bonded indebtedness of the
259	259	municipality.
260	260	Sec. 6. K.S.A. 2023 Supp. 72-5142 is hereby amended to read as
261	261	follows: 72-5142. (a) The board of education of each school district shall
262	262	levy an ad valorem tax upon the taxable tangible property of the school
263	263	district in the school years specified in subsection (b) for the purpose of:
264	264	(1) Financing that portion of the school district's general fund budget
265	265	that is not financed from any other source provided by law;
266	266	(2) paying a portion of the costs of operating and maintaining public
267	267	schools in partial fulfillment of the constitutional obligation of the
268	268	legislature to finance the educational interests of the state; and
269	269	(3) with respect to any redevelopment school district established prior
270	270	to July 1, 1997, pursuant to K.S.A. 12-1771, and amendments thereto,
271	271	paying a portion of the principal and interest on bonds issued by cities
272	272	under authority of K.S.A. 12-1774, and amendments thereto, for the
273	273	financing of redevelopment projects upon property located within the
274	274	school district.
275	275	(b) The tax required under subsection (a) shall be levied at a rate of
276	276	20 18 mills in the school years 2023-2024 and 2024-2025 and 2025-2026.
277	277	(c) The proceeds from the tax levied by a district under authority of
278	278	this section, except the proceeds of such tax levied for the purpose
279	279	described in subsection (a)(3), shall be remitted to the state treasurer in
280	280	accordance with the provisions of K.S.A. 75-4215, and amendments
281	281	thereto. Upon receipt of each such remittance, the state treasurer shall
282	282	deposit the entire amount in the state treasury to the credit of the state
283	283	school district finance fund.
284	284	(d) No school district shall proceed under K.S.A. 79-1964, 79-1964a
285	285	or 79-1964b, and amendments thereto.
286	286	Sec. 7. K.S.A. 2023 Supp. 74-8768 is hereby amended to read as
287	287	follows: 74-8768. (a) There is hereby created the expanded lottery act
288	288	revenues fund in the state treasury. All expenditures and transfers from
289	289	such fund shall be made in accordance with appropriation acts. All moneys
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333	333	credited to such fund shall be expended or transferred only for the
334	334	purposes of reduction of state debt, state infrastructure improvements, the
335	335	university engineering initiative act, reduction of local ad valorem tax in
336	336	the same manner as provided for allocation of amounts in the local ad
337	337	valorem tax reduction fund and reduction of the unfunded actuarial
338	338	liability of the system attributable to the state of Kansas and participating
339	339	employers under K.S.A. 74-4931, and amendments thereto, by the Kansas
340	340	public employees retirement system.
341	341	(b) On July 1, 2021, July 1, 2022, July 1, 2023, July 1, 2024, July 1,
342	342	2025, July 1, 2026, July 1, 2027, July 1, 2028, July 1, 2029, July 1, 2030,
343	343	and July 1, 2031, or as soon thereafter such date as moneys are available,
344	344	the first $10,500,000 credited to the expanded lottery act revenues fund
345	345	shall be transferred by the director of accounts and reports from the
346	346	expanded lottery act revenues fund in one or more substantially equal
347	347	amounts, to each of the following: The Kan-grow engineering fund – KU,
348	348	Kan-grow engineering fund – KSU and Kan-grow engineering fund –
349	349	WSU. Each such special revenue fund shall receive $3,500,000 annually in
350	350	each of such years. Commencing in fiscal year 2014, after such transfer
351	351	has been made, 50% of the remaining moneys credited to the fund shall be
352	352	transferred on a quarterly basis by the director of accounts and reports
353	353	from the fund to the Kansas public employees retirement system fund to
354	354	be applied to reduce the unfunded actuarial liability of the system
355	355	attributable to the state of Kansas and participating employers under
356	356	K.S.A. 74-4931 et seq., and amendments thereto, until the system as a
357	357	whole attains an 80% funding ratio as certified by the board of trustees of
358	358	the Kansas public employees retirement system.
359	359	Sec. 8. K.S.A. 75-2556 is hereby amended to read as follows: 75-
360	360	2556. (a) The state librarian shall determine the amount of the grant-in-aid
361	361	each eligible local public library is to receive based on the latest
362	362	population census figures as certified by the division of the budget.
363	363	(b) Except as provided by subsection (d), no local public library shall
364	364	be eligible for any state grants-in-aid if the total amount of the following
365	365	paragraphs is less than the total amount produced from such sources for
366	366	the same library for the previous year, based on the information contained
367	367	in the official annual budgets of municipalities that are filed with the
368	368	division of accounts and reports in accordance with K.S.A. 79-2930, and
369	369	amendments thereto:
370	370	(1) The amount produced by the local ad valorem tax levies for the
371	371	current year expenses for such library;
372	372	(2) the amount of moneys received from the local ad valorem tax
373	373	reduction fund for current year expenses for such library;
374	374	(3) the amount of moneys received from taxes levied upon motor
375	375	vehicles under the provisions of K.S.A. 79-5101 et seq., and amendments
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419	419	thereto, for current year expenses for such library; and
420	420	(4)(3) the amount of moneys received in the current year from
421	421	collections of unpaid local ad valorem tax levies for prior year expenses
422	422	for such library.
423	423	(c) Local public library districts in which the assessed valuation
424	424	decreases shall remain eligible for state grants-in-aid so long as the ad
425	425	valorem tax mill rate for the support of such library has not been reduced
426	426	below the mill rate imposed for such purpose for the previous year.
427	427	(d) If a local public library fails to qualify for eligibility for any state
428	428	grants-in-aid under subsection (b), the state librarian shall have the power
429	429	to continue the eligibility of a local public library for any state grants-in-
430	430	aid if the state librarian, after evaluation of all the circumstances,
431	431	determines that the legislative intent for maintenance of local tax levy
432	432	support for the on-going operations of the library is being met by the
433	433	library district.
434	434	(e) The distribution so determined shall be apportioned and paid on
435	435	February 15 of each year.
436	436	Sec. 9. K.S.A. 2023 Supp. 79-201x is hereby amended to read as
437	437	follows: 79-201x. (a) For taxable year 2022 2024, and all taxable years
438	438	thereafter, the following described property, to the extent herein specified,
439	439	shall be and is hereby exempt from the property tax levied pursuant to the
440	440	provisions of K.S.A. 72-5142, and amendments thereto: Property used for
441	441	residential purposes to the extent of $40,000 $80,000 of its appraised
442	442	valuation.
443	443	(b) For taxable year 2023 2025, and all taxable years thereafter, the
444	444	dollar amount of the extent of appraised valuation that is exempt pursuant
445	445	to subsection (a) and any subsequent changes pursuant to this subsection
446	446	shall be adjusted to reflect the average percentage change in statewide
447	447	residential valuation of all residential real property for the preceding 10
448	448	years. Such average percentage change shall not be less than zero. The
449	449	director of property valuation shall calculate the average percentage
450	450	change for purposes of this annual adjustment and calculate the dollar
451	451	amount of the extent of appraised valuation that is exempt pursuant to this
452	452	section each year.
453	453	Sec. 10. K.S.A. 79-1107 is hereby amended to read as follows: 79-
454	454	1107. (a) Every national banking association and state bank located or
455	455	doing business within the state shall pay to the state for the privilege of
456	456	doing business within the state a tax according to or measured by its net
457	457	income for the next preceding taxable year to be computed as provided in
458	458	this act. Such tax shall consist of a normal tax and a surtax and shall be
459	459	computed as follows:
460	460	(a)(1) (A) For tax year 2024, the normal tax shall be an amount equal
461	461	to 2
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463	463	/4% 2.25% of such net income; and
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507	507	(B) for tax year 2025, and all tax years thereafter, the normal tax
508	508	shall be an amount equal to 1.63% of such net income; and
509	509	(b)(2) the surtax shall be an amount equal to 2
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511	511	/8% 2.125% of such
512	512	net income in excess of $25,000.
513	513	(b) The tax levied shall be in lieu of ad valorem taxes which might
514	514	otherwise be imposed by the state or political subdivisions thereof upon
515	515	shares of capital stock or the intangible assets of national banking
516	516	associations and state banks.
517	517	Sec. 11. K.S.A. 79-1108 is hereby amended to read as follows: 79-
518	518	1108. (a) Every trust company and savings and loan association located or
519	519	doing business within the state shall pay to the state for the privilege of
520	520	doing business within the state a tax according to or measured by its net
521	521	income for the next preceding taxable year to be computed as provided in
522	522	this act. Such tax shall consist of a normal tax and a surtax and shall be
523	523	computed as follows:
524	524	(a)(1) (A) For tax year 2024, the normal tax on every trust company
525	525	and savings and loan association shall be an amount equal to 2
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527	527	/4% 2.25%
528	528	of such net income; and
529	529	(B) for tax year 2025, and all tax years thereafter, the normal tax on
530	530	every trust company and savings and loan association shall be an amount
531	531	equal to 1.61% of such net income; and
532	532	(b)(2) the surtax on every trust company and savings and loan
533	533	association shall be an amount equal to 2
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535	535	/4% 2.25% of such net income in
536	536	excess of $25,000.
537	537	(b) The tax levied shall be in lieu of ad valorem taxes which might
538	538	otherwise be imposed by the state or political subdivision thereof upon
539	539	shares of capital stock or other intangible assets of trust companies and
540	540	savings and loan associations.
541	541	Sec. 12. K.S.A. 79-1479 is hereby amended to read as follows: 79-
542	542	1479. (a) On or before January 15, 1992, and quarterly thereafter, the
543	543	county or district appraiser shall submit to the director of property
544	544	valuation a progress report indicating actions taken during the preceding
545	545	quarter calendar year to implement the appraisal of property in the county
546	546	or district. Whenever the director of property valuation shall determine
547	547	that any county has failed, neglected or refused to properly provide for the
548	548	appraisal of property or the updating of the appraisals on an annual basis in
549	549	substantial compliance with the provisions of law and the guidelines and
550	550	timetables prescribed by the director, the director shall file with the state
551	551	board of tax appeals a complaint stating the facts upon which the director
552	552	has made the determination of noncompliance as provided by K.S.A. 79-
553	553	1413a, and amendments thereto. If, as a result of such proceeding, the state
554	554	board of tax appeals finds that the county is not in substantial compliance
555	555	with the provisions of law and the guidelines and timetables of the director
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599	599	of property valuation providing for the appraisal of all property in the
600	600	county or the updating of the appraisals on an annual basis, it shall order
601	601	the immediate assumption of the duties of the office of county appraiser by
602	602	the director of the division of property valuation until such time as the
603	603	director of property valuation determines that the county is in substantial
604	604	compliance with the provisions of law. In addition, the board shall order
605	605	the state treasurer to withhold all or a portion of the county's entitlement to
606	606	moneys from either or both of the local ad valorem tax reduction fund and
607	607	the city and county revenue sharing fund for the year following the year in
608	608	which the order is issued. Upon service of any such order on the board of
609	609	county commissioners, the appraiser shall immediately deliver to the
610	610	director of property valuation, or the director's designee, all books, records
611	611	and papers pertaining to the appraiser's office.
612	612	Any county for which the director of the division of property valuation
613	613	is ordered by the state board of tax appeals to assume the responsibility
614	614	and duties of the office of county appraiser shall reimburse the state for the
615	615	actual costs incurred by the director of the division of property valuation in
616	616	the assumption and carrying out of such responsibility and duties,
617	617	including any contracting costs in the event it is necessary for the director
618	618	of property valuation to contract with private appraisal firms to carry out
619	619	such responsibilities and duties.
620	620	(b) On or before June 1 of each year, the director of property
621	621	valuation shall review the appraisal of property in each county or district
622	622	to determine if property within the county or district is being appraised or
623	623	valued in accordance with the requirements of law. If the director
624	624	determines the property in any county or district is not being appraised in
625	625	accordance with the requirements of law, the director of property valuation
626	626	shall notify the county or district appraiser and the board of county
627	627	commissioners of any county or counties affected that the county has 30
628	628	days within which to submit to the director a plan for bringing the
629	629	appraisal of property within the county into compliance.
630	630	If a plan is submitted and approved by the director the county or district
631	631	shall proceed to implement the plan as submitted. The director shall
632	632	continue to monitor the program to insure that the plan is implemented as
633	633	submitted. If no plan is submitted or if the director does not approve the
634	634	plan, the director shall petition the state board of tax appeals for a review
635	635	of the plan or, if no plan is submitted, for authority for the division of
636	636	property valuation to assume control of the appraisal program of the
637	637	county and to proceed to bring the same into compliance with the
638	638	requirements of law.
639	639	If the state board of tax appeals approves the plan, the county or district
640	640	appraiser shall proceed to implement the plan as submitted. If no plan has
641	641	been submitted or the plan submitted is not approved, the board shall fix a
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684	684	43 HB 2844 9
685	685	time within which the county may submit a plan or an amended plan for
686	686	approval. If no plan is submitted and approved within the time prescribed
687	687	by the board, the board shall order the division of property valuation to
688	688	assume control of the appraisal program of the county and shall certify its
689	689	order to the state treasurer who shall withhold distributions of the county's
690	690	share of moneys from the county and city revenue sharing fund and the
691	691	local ad valorem tax reduction fund and credit the same to the general fund
692	692	of the state for the year following the year in which the board's order is
693	693	made. The director of property valuation shall certify the amount of the
694	694	cost incurred by the division in bringing the program in compliance to the
695	695	state board of tax appeals. The board shall order the county commissioners
696	696	to reimburse the state for such costs.
697	697	(c) The state board of tax appeals shall within 60 days after the
698	698	publication of the Kansas assessment/sales ratio study review such
699	699	publication to determine county compliance with K.S.A. 79-1439, and
700	700	amendments thereto. If in the determination of the board one or more
701	701	counties are not in substantial compliance and the director of property
702	702	valuation has not acted under subsection (b), the board shall order the
703	703	director of property valuation to take such corrective action as is necessary
704	704	or to show cause for noncompliance.
705	705	Sec. 13. K.S.A. 2023 Supp. 79-2988 is hereby amended to read as
706	706	follows: 79-2988. (a) On or before June 15 each year, the county clerk
707	707	shall calculate the revenue neutral rate for each taxing subdivision and
708	708	include such revenue neutral rate on the notice of the estimated assessed
709	709	valuation provided to each taxing subdivision for budget purposes. The
710	710	director of accounts and reports shall modify the prescribed budget
711	711	information form to show the revenue neutral rate.
712	712	(b) No tax rate in excess of the revenue neutral rate shall be levied by
713	713	the governing body of any taxing subdivision unless a resolution or
714	714	ordinance has been approved by the governing body according to the
715	715	following procedure:
716	716	(1) At least 10 days in advance of the public hearing, the governing
717	717	body shall publish notice of its proposed intent to exceed the revenue
718	718	neutral rate by publishing notice:
719	719	(A) On the website of the governing body, if the governing body
720	720	maintains a website; and
721	721	(B) in a weekly or daily newspaper of the county having a general
722	722	circulation therein. The notice shall include, but not be limited to, its
723	723	proposed tax rate, its revenue neutral rate and the date, time and location
724	724	of the public hearing.
725	725	(2) On or before July 20, the governing body shall notify the county
726	726	clerk of its proposed intent to exceed the revenue neutral rate and provide
727	727	the date, time and location of the public hearing and its proposed tax rate.
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770	770	43 HB 2844 10
771	771	For all tax years commencing after December 31, 2021, the county clerk
772	772	shall notify each taxpayer with property in the taxing subdivision, by mail
773	773	directed to the taxpayer's last known address, of the proposed intent to
774	774	exceed the revenue neutral rate at least 10 days in advance of the public
775	775	hearing. Alternatively, the county clerk may transmit the notice to the
776	776	taxpayer by electronic means at least 10 days in advance of the public
777	777	hearing, if such taxpayer and county clerk have consented in writing to
778	778	service by electronic means. The county clerk shall consolidate the
779	779	required information for all taxing subdivisions relevant to the taxpayer's
780	780	property on one notice. The notice shall be in a format prescribed by the
781	781	director of accounts and reports. The notice shall include, but not be
782	782	limited to:
783	783	(A) The revenue neutral rate of each taxing subdivision relevant to
784	784	the taxpayer's property;
785	785	(B) the proposed property tax revenue needed to fund the proposed
786	786	budget of the taxing subdivision, if the taxing subdivision notified the
787	787	county clerk of its proposed intent to exceed its revenue neutral rate;
788	788	(C) the proposed tax rate based upon the proposed budget and the
789	789	current year's total assessed valuation of the taxing subdivision, if the
790	790	taxing subdivision notified the county clerk of its proposed intent to
791	791	exceed its revenue neutral rate;
792	792	(D) the percentage by which the proposed tax rate exceeds the
793	793	revenue neutral rate;
794	794	(E) the tax rate and property tax of each taxing subdivision on the
795	795	taxpayer's property from the previous year's tax statement;
796	796	(F) the appraised value and assessed value of the taxpayer's property
797	797	for the current year;
798	798	(G) the estimates of the tax for the current tax year on the taxpayer's
799	799	property based on the revenue neutral rate of each taxing subdivision and
800	800	any proposed tax rates that exceed the revenue neutral rates;
801	801	(H) the difference between the estimates of tax based on the proposed
802	802	tax rate and the revenue neutral rate on the taxpayer's property described in
803	803	subparagraph (G) for any taxing subdivision that has a proposed tax rate
804	804	that exceeds its revenue neutral rate; and
805	805	(I) the date, time and location of the public hearing of the taxing
806	806	subdivision, if the taxing subdivision notified the county clerk of its
807	807	proposed intent to exceed its revenue neutral rate.
808	808	Although the state of Kansas is not a taxing subdivision for purposes of
809	809	this section, the notice shall include a statement of the statutory mill levies
810	810	imposed by the state and the estimate of the tax for the current year on the
811	811	taxpayer's property based on such levies.
812	812	(3) The public hearing to consider exceeding the revenue neutral rate
813	813	shall be held not sooner than August 20 and not later than September 20.
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856	856	43 HB 2844 11
857	857	The governing body shall provide interested taxpayers desiring to be heard
858	858	an opportunity to present oral testimony within reasonable time limits and
859	859	without unreasonable restriction on the number of individuals allowed to
860	860	make public comment. The public hearing may be conducted in
861	861	conjunction with the proposed budget hearing pursuant to K.S.A. 79-2929,
862	862	and amendments thereto, if the governing body otherwise complies with
863	863	all requirements of this section. Nothing in this section shall be construed
864	864	to prohibit additional public hearings that provide additional opportunities
865	865	to present testimony or public comment prior to the public hearing
866	866	required by this section.
867	867	(4) A majority vote of the governing body, by the adoption of a
868	868	resolution or ordinance to approve exceeding the revenue neutral rate,
869	869	shall be required prior to adoption of a proposed budget that will result in a
870	870	tax rate in excess of the revenue neutral rate. Such vote of the governing
871	871	body shall be conducted at the public hearing after the governing body has
872	872	heard from interested taxpayers and shall be a roll call vote. If the
873	873	governing body approves exceeding the revenue neutral rate, the
874	874	governing body shall not adopt a budget that results in a tax rate in excess
875	875	of its proposed tax rate as stated in the notice provided pursuant to this
876	876	section. A copy of the resolution or ordinance to approve exceeding the
877	877	revenue neutral rate and a certified copy of any roll call vote reporting, at a
878	878	minimum, the name and vote of each member of the governing body
879	879	related to exceeding the revenue neutral rate, whether approved or not,
880	880	shall be included with the adopted budget, budget certificate and other
881	881	budget forms filed with the county clerk and the director of accounts and
882	882	reports and shall be published on the website of the department of
883	883	administration.
884	884	(c) (1) Any governing body subject to the provisions of this section
885	885	that does not comply with subsection (b) shall refund to taxpayers any
886	886	property taxes over-collected based on the amount of the levy that was in
887	887	excess of the revenue neutral rate.
888	888	(2) Any taxpayer of the taxing subdivision that is the subject of the
889	889	complaint or such taxpayer's duly authorized representative may file a
890	890	complaint with the state board of tax appeals by filing a written complaint,
891	891	on a form prescribed by the board, that contains the facts that the
892	892	complaining party believes show that a governing body of a taxing
893	893	subdivision did not comply with the provisions of subsection (b) and that a
894	894	reduction or refund of taxes is appropriate. The complaining party shall
895	895	provide a copy of such complaint to the governing body of the taxing
896	896	subdivision making the levy that is the subject of the complaint.
897	897	Notwithstanding K.S.A. 74-2438a, and amendments thereto, no filing fee
898	898	shall be charged by the executive director of the state board of tax appeals
899	899	for a complaint filed pursuant to this paragraph. The governing body of the
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942	942	43 HB 2844 12
943	943	taxing subdivision making the levy that is the subject of the complaint
944	944	shall be a party to the proceeding. Notice of any summary proceeding or
945	945	hearing shall be served upon such governing body, the county clerk, the
946	946	director of accounts and reports and the complaining party. It shall be the
947	947	duty of the governing body to initiate the production of evidence to
948	948	demonstrate, by a preponderance of the evidence, the validity of such levy.
949	949	If upon a summary proceeding or hearing, it shall be made to appear to the
950	950	satisfaction of the board that the governing body of the taxing subdivision
951	951	did not comply with subsection (b), the state board of tax appeals shall
952	952	order such governing body to refund to taxpayers the amount of property
953	953	taxes over collected or reduce the taxes levied, if uncollected. The
954	954	provisions of this paragraph shall not be construed as prohibiting any other
955	955	remedies available under the law.
956	956	(d) On and after January 1, 2022, in the event that the 20 mills tax
957	957	levied by a school district pursuant to K.S.A. 72-5142, and amendments
958	958	thereto, increases the property tax revenue generated for the purpose of
959	959	calculating the revenue neutral rate from the previous tax year and such
960	960	amount of increase in revenue generated from the 20 mills such tax levied
961	961	is the only reason that the school district would exceed the total property
962	962	tax revenue from the prior year, the school district shall be deemed to not
963	963	have exceeded the revenue neutral rate in levying a tax rate in excess of
964	964	the revenue neutral rate to take into account the increase in revenue from
965	965	only the 20 mills such tax levied.
966	966	(e) (1) Notwithstanding any other provision of law to the contrary, if
967	967	the governing body of a taxing subdivision must conduct a public hearing
968	968	to approve exceeding the revenue neutral rate under this section, the
969	969	governing body of the taxing subdivision shall certify, on or before
970	970	October 1, to the proper county clerk the amount of ad valorem tax to be
971	971	levied.
972	972	(2) If a governing body of a taxing subdivision did not comply with
973	973	the provisions of subsection (b) and certifies to the county clerk an amount
974	974	of ad valorem tax to be levied that would result in a tax rate in excess of its
975	975	revenue neutral rate, the county clerk shall reduce the ad valorem tax to be
976	976	levied to the amount resulting from such taxing subdivision's revenue
977	977	neutral rate.
978	978	(f) As used in this section:
979	979	(1) "Taxing subdivision" means any political subdivision of the state
980	980	that levies an ad valorem tax on property.
981	981	(2) "Revenue neutral rate" means the tax rate for the current tax year
982	982	that would generate the same property tax revenue as levied the previous
983	983	tax year using the current tax year's total assessed valuation. To calculate
984	984	the revenue neutral rate, the county clerk shall divide the property tax
985	985	revenue for such taxing subdivision levied for the previous tax year by the
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1028	1028	43 HB 2844 13
1029	1029	total of all taxable assessed valuation in such taxing subdivision for the
1030	1030	current tax year, and then multiply the quotient by 1,000 to express the rate
1031	1031	in mills. The revenue neutral rate shall be expressed to the third decimal
1032	1032	place.
1033	1033	(g) In the event that a county clerk incurred costs of printing and
1034	1034	postage that were not reimbursed pursuant to K.S.A. 2023 Supp. 79-2989,
1035	1035	and amendments thereto, such county clerk may seek reimbursement from
1036	1036	all taxing subdivisions required to send the notice. Such costs shall be
1037	1037	shared proportionately by all taxing subdivisions that were included on the
1038	1038	same notice based on the total property tax levied by each taxing
1039	1039	subdivision. Payment of such costs shall be due to the county clerk by
1040	1040	December 31.
1041	1041	(h) The department of administration or the director of accounts and
1042	1042	reports shall make copies of adopted budgets, budget certificates, other
1043	1043	budget documents and revenue neutral rate documents available to the
1044	1044	public on the department of administration's website on a permanently
1045	1045	accessible web page that may be accessed via a conspicuous link to that
1046	1046	web page placed on the front page of the department's website. The
1047	1047	department of administration or the director of accounts and reports shall
1048	1048	also make the following information for each tax year available on such
1049	1049	website:
1050	1050	(1) A list of taxing subdivisions by county;
1051	1051	(2) whether each taxing subdivision conducted a hearing to consider
1052	1052	exceeding its revenue neutral rate;
1053	1053	(3) the revenue neutral rate of each taxing subdivision;
1054	1054	(4) the tax rate resulting from the adopted budget of each taxing
1055	1055	subdivision; and
1056	1056	(5) the percent change between the revenue neutral rate and the tax
1057	1057	rate for each taxing subdivision.
1058	1058	Sec. 14. K.S.A. 2023 Supp. 79-32,110 is hereby amended to read as
1059	1059	follows: 79-32,110. (a) Resident individuals. Except as otherwise provided
1060	1060	by K.S.A. 79-3220(a), and amendments thereto, a tax is hereby imposed
1061	1061	upon the Kansas taxable income of every resident individual, which tax
1062	1062	shall be computed in accordance with the following tax schedules:
1063	1063	(1) Married individuals filing joint returns.
1064	1064	(A) For tax year 2012:
1065	1065	If the taxable income is: The tax is:
1066	1066	Not over $30,000 3.5% of Kansas taxable income
1067	1067	Over $30,000 but not over $60,000 $1,050 plus 6.25% of excess
1068	1068	over $30,000
1069	1069	Over $60,000 $2,925 plus 6.45% of excess
1070	1070	over $60,000
1071	1071	(B) For tax year 2013:
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1114	1114	43 HB 2844 14
1115	1115	If the taxable income is: The tax is:
1116	1116	Not over $30,000 3.0% of Kansas taxable income
1117	1117	Over $30,000 $900 plus 4.9% of excess over
1118	1118	$30,000
1119	1119	(C) For tax year 2014:
1120	1120	If the taxable income is: The tax is:
1121	1121	Not over $30,000 2.7% of Kansas taxable income
1122	1122	Over $30,000 $810 plus 4.8% of excess over
1123	1123	$30,000
1124	1124	(D) For tax years 2015 and 2016:
1125	1125	If the taxable income is: The tax is:
1126	1126	Not over $30,000 2.7% of Kansas taxable income
1127	1127	Over $30,000 $810 plus 4.6% of excess over
1128	1128	$30,000
1129	1129	(E) For tax year 2017:
1130	1130	If the taxable income is: The tax is:
1131	1131	Not over $30,000 2.9% of Kansas taxable income
1132	1132	Over $30,000 but not over $60,000 $870 plus 4.9% of excess over
1133	1133	$30,000
1134	1134	Over $60,000 $2,340 plus 5.2% of excess over
1135	1135	$60,000
1136	1136	(F) For tax year years 2018, and all tax years thereafter through 2023:
1137	1137	If the taxable income is: The tax is:
1138	1138	Not over $30,000 3.1% of Kansas taxable income
1139	1139	Over $30,000 but not over $60,000$930 plus 5.25% of excess
1140	1140	over $30,000
1141	1141	Over $60,000 $2,505 plus 5.7% of excess
1142	1142	over $60,000
1143	1143	(B) For tax year 2024, and all tax years thereafter:
1144	1144	If the taxable income is: The tax is:
1145	1145	Not over $14,000 0% of Kansas taxable income
1146	1146	Over $14,000 but not over $60,0005.2% of excess over $14,000
1147	1147	Over $60,000 $2,392 plus 5.65% of excess
1148	1148	over $60,000
1149	1149	(2) All other individuals.
1150	1150	(A) For tax year 2012:
1151	1151	If the taxable income is: The tax is:
1152	1152	Not over $15,000 3.5% of Kansas taxable income
1153	1153	Over $15,000 but not over $30,000 $525 plus 6.25% of excess
1154	1154	over $15,000
1155	1155	Over $30,000 $1,462.50 plus 6.45% of excess
1156	1156	over $30,000
1157	1157	(B) For tax year 2013:
1158	1158	1
1159	1159	2
1160	1160	3
1161	1161	4
1162	1162	5
1163	1163	6
1164	1164	7
1165	1165	8
1166	1166	9
1167	1167	10
1168	1168	11
1169	1169	12
1170	1170	13
1171	1171	14
1172	1172	15
1173	1173	16
1174	1174	17
1175	1175	18
1176	1176	19
1177	1177	20
1178	1178	21
1179	1179	22
1180	1180	23
1181	1181	24
1182	1182	25
1183	1183	26
1184	1184	27
1185	1185	28
1186	1186	29
1187	1187	30
1188	1188	31
1189	1189	32
1190	1190	33
1191	1191	34
1192	1192	35
1193	1193	36
1194	1194	37
1195	1195	38
1196	1196	39
1197	1197	40
1198	1198	41
1199	1199	42
1200	1200	43 HB 2844 15
1201	1201	If the taxable income is: The tax is:
1202	1202	Not over $15,000 3.0% of Kansas taxable income
1203	1203	Over $15,000 $450 plus 4.9% of excess over
1204	1204	$15,000
1205	1205	(C) For tax year 2014:
1206	1206	If the taxable income is: The tax is:
1207	1207	Not over $15,000 2.7% of Kansas taxable income
1208	1208	Over $15,000 $405 plus 4.8% of excess over
1209	1209	$15,000
1210	1210	(D) For tax years 2015 and 2016:
1211	1211	If the taxable income is: The tax is:
1212	1212	Not over $15,000 2.7% of Kansas taxable income
1213	1213	Over $15,000 $405 plus 4.6% of excess over
1214	1214	$15,000
1215	1215	(E) For tax year 2017:
1216	1216	If the taxable income is: The tax is:
1217	1217	Not over $15,000 2.9% of Kansas taxable income
1218	1218	Over $15,000 but not over $30,000 $435 plus 4.9% of excess over
1219	1219	$15,000
1220	1220	Over $30,000 $1,170 plus 5.2% of excess over
1221	1221	$30,000
1222	1222	(F) For tax year years 2018, and all tax years thereafter through 2023:
1223	1223	If the taxable income is: The tax is:
1224	1224	Not over $15,000 3.1% of Kansas taxable income
1225	1225	Over $15,000 but not over $30,000$465 plus 5.25% of excess
1226	1226	over $15,000
1227	1227	Over $30,000 $1,252.50 plus 5.7% of excess
1228	1228	over $30,000
1229	1229	(B) For tax year 2024, and all tax years thereafter:
1230	1230	If the taxable income is: The tax is:
1231	1231	Not over $7,000 0% of Kansas taxable income
1232	1232	Over $7,000 but not over $30,0005.2% of excess over $7,000
1233	1233	Over $30,000 $1,196 plus 5.65% of excess
1234	1234	over $30,000
1235	1235	(b) Nonresident individuals. A tax is hereby imposed upon the Kansas
1236	1236	taxable income of every nonresident individual, which tax shall be an
1237	1237	amount equal to the tax computed under subsection (a) as if the
1238	1238	nonresident were a resident multiplied by the ratio of modified Kansas
1239	1239	source income to Kansas adjusted gross income.
1240	1240	(c) Corporations. A tax is hereby imposed upon the Kansas taxable
1241	1241	income of every corporation doing business within this state or deriving
1242	1242	income from sources within this state. Such tax shall consist of a normal
1243	1243	tax and a surtax and shall be computed as follows unless otherwise
1244	1244	1
1245	1245	2
1246	1246	3
1247	1247	4
1248	1248	5
1249	1249	6
1250	1250	7
1251	1251	8
1252	1252	9
1253	1253	10
1254	1254	11
1255	1255	12
1256	1256	13
1257	1257	14
1258	1258	15
1259	1259	16
1260	1260	17
1261	1261	18
1262	1262	19
1263	1263	20
1264	1264	21
1265	1265	22
1266	1266	23
1267	1267	24
1268	1268	25
1269	1269	26
1270	1270	27
1271	1271	28
1272	1272	29
1273	1273	30
1274	1274	31
1275	1275	32
1276	1276	33
1277	1277	34
1278	1278	35
1279	1279	36
1280	1280	37
1281	1281	38
1282	1282	39
1283	1283	40
1284	1284	41
1285	1285	42
1286	1286	43 HB 2844 16
1287	1287	modified pursuant to K.S.A. 2023 Supp. 74-50,321, and amendments
1288	1288	thereto:
1289	1289	(1) The normal tax shall be in an amount equal to 4% of the Kansas
1290	1290	taxable income of such corporation; and
1291	1291	(2) the surtax shall be in an amount equal to 3% of the Kansas taxable
1292	1292	income of such corporation in excess of $50,000.
1293	1293	(d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable
1294	1294	income of estates and trusts at the rates provided in subsection (a)(2)
1295	1295	hereof.
1296	1296	(e) Notwithstanding the provisions of subsections (a) and (b): (1) For
1297	1297	tax years 2016 and 2017, married individuals filing joint returns with
1298	1298	taxable income of $12,500 or less, and all other individuals with taxable
1299	1299	income of $5,000 or less, shall have a tax liability of zero; and (2), for tax
1300	1300	year years 2018, and all tax years thereafter through 2023, married
1301	1301	individuals filing joint returns with taxable income of $5,000 or less, and
1302	1302	all other individuals with taxable income of $2,500 or less, shall have a tax
1303	1303	liability of zero.
1304	1304	(f) No taxpayer shall be assessed penalties and interest arising from
1305	1305	the underpayment of taxes due to changes to the rates in subsection (a) that
1306	1306	became law on July 1, 2017, so long as such underpayment is rectified on
1307	1307	or before April 17, 2018.
1308	1308	Sec. 15. K.S.A. 2023 Supp. 79-32,117 is hereby amended to read as
1309	1309	follows: 79-32,117. (a) The Kansas adjusted gross income of an individual
1310	1310	means such individual's federal adjusted gross income for the taxable year,
1311	1311	with the modifications specified in this section.
1312	1312	(b) There shall be added to federal adjusted gross income:
1313	1313	(i) Interest income less any related expenses directly incurred in the
1314	1314	purchase of state or political subdivision obligations, to the extent that the
1315	1315	same is not included in federal adjusted gross income, on obligations of
1316	1316	any state or political subdivision thereof, but to the extent that interest
1317	1317	income on obligations of this state or a political subdivision thereof issued
1318	1318	prior to January 1, 1988, is specifically exempt from income tax under the
1319	1319	laws of this state authorizing the issuance of such obligations, it shall be
1320	1320	excluded from computation of Kansas adjusted gross income whether or
1321	1321	not included in federal adjusted gross income. Interest income on
1322	1322	obligations of this state or a political subdivision thereof issued after
1323	1323	December 31, 1987, shall be excluded from computation of Kansas
1324	1324	adjusted gross income whether or not included in federal adjusted gross
1325	1325	income.
1326	1326	(ii) Taxes on or measured by income or fees or payments in lieu of
1327	1327	income taxes imposed by this state or any other taxing jurisdiction to the
1328	1328	extent deductible in determining federal adjusted gross income and not
1329	1329	credited against federal income tax. This paragraph shall not apply to taxes
1330	1330	1
1331	1331	2
1332	1332	3
1333	1333	4
1334	1334	5
1335	1335	6
1336	1336	7
1337	1337	8
1338	1338	9
1339	1339	10
1340	1340	11
1341	1341	12
1342	1342	13
1343	1343	14
1344	1344	15
1345	1345	16
1346	1346	17
1347	1347	18
1348	1348	19
1349	1349	20
1350	1350	21
1351	1351	22
1352	1352	23
1353	1353	24
1354	1354	25
1355	1355	26
1356	1356	27
1357	1357	28
1358	1358	29
1359	1359	30
1360	1360	31
1361	1361	32
1362	1362	33
1363	1363	34
1364	1364	35
1365	1365	36
1366	1366	37
1367	1367	38
1368	1368	39
1369	1369	40
1370	1370	41
1371	1371	42
1372	1372	43 HB 2844 17
1373	1373	imposed under the provisions of K.S.A. 79-1107 or 79-1108, and
1374	1374	amendments thereto, for privilege tax year 1995, and all such years
1375	1375	thereafter.
1376	1376	(iii) The federal net operating loss deduction, except that the federal
1377	1377	net operating loss deduction shall not be added to an individual's federal
1378	1378	adjusted gross income for tax years beginning after December 31, 2016.
1379	1379	(iv) Federal income tax refunds received by the taxpayer if the
1380	1380	deduction of the taxes being refunded resulted in a tax benefit for Kansas
1381	1381	income tax purposes during a prior taxable year. Such refunds shall be
1382	1382	included in income in the year actually received regardless of the method
1383	1383	of accounting used by the taxpayer. For purposes hereof, a tax benefit shall
1384	1384	be deemed to have resulted if the amount of the tax had been deducted in
1385	1385	determining income subject to a Kansas income tax for a prior year
1386	1386	regardless of the rate of taxation applied in such prior year to the Kansas
1387	1387	taxable income, but only that portion of the refund shall be included as
1388	1388	bears the same proportion to the total refund received as the federal taxes
1389	1389	deducted in the year to which such refund is attributable bears to the total
1390	1390	federal income taxes paid for such year. For purposes of the foregoing
1391	1391	sentence, federal taxes shall be considered to have been deducted only to
1392	1392	the extent such deduction does not reduce Kansas taxable income below
1393	1393	zero.
1394	1394	(v) The amount of any depreciation deduction or business expense
1395	1395	deduction claimed on the taxpayer's federal income tax return for any
1396	1396	capital expenditure in making any building or facility accessible to the
1397	1397	handicapped, for which expenditure the taxpayer claimed the credit
1398	1398	allowed by K.S.A. 79-32,177, and amendments thereto.
1399	1399	(vi) Any amount of designated employee contributions picked up by
1400	1400	an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965,
1401	1401	and amendments thereto.
1402	1402	(vii) The amount of any charitable contribution made to the extent the
1403	1403	same is claimed as the basis for the credit allowed pursuant to K.S.A. 79-
1404	1404	32,196, and amendments thereto.
1405	1405	(viii) The amount of any costs incurred for improvements to a swine
1406	1406	facility, claimed for deduction in determining federal adjusted gross
1407	1407	income, to the extent the same is claimed as the basis for any credit
1408	1408	allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
1409	1409	(ix) The amount of any ad valorem taxes and assessments paid and
1410	1410	the amount of any costs incurred for habitat management or construction
1411	1411	and maintenance of improvements on real property, claimed for deduction
1412	1412	in determining federal adjusted gross income, to the extent the same is
1413	1413	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,203,
1414	1414	and amendments thereto.
1415	1415	(x) Amounts received as nonqualified withdrawals, as defined by
1416	1416	1
1417	1417	2
1418	1418	3
1419	1419	4
1420	1420	5
1421	1421	6
1422	1422	7
1423	1423	8
1424	1424	9
1425	1425	10
1426	1426	11
1427	1427	12
1428	1428	13
1429	1429	14
1430	1430	15
1431	1431	16
1432	1432	17
1433	1433	18
1434	1434	19
1435	1435	20
1436	1436	21
1437	1437	22
1438	1438	23
1439	1439	24
1440	1440	25
1441	1441	26
1442	1442	27
1443	1443	28
1444	1444	29
1445	1445	30
1446	1446	31
1447	1447	32
1448	1448	33
1449	1449	34
1450	1450	35
1451	1451	36
1452	1452	37
1453	1453	38
1454	1454	39
1455	1455	40
1456	1456	41
1457	1457	42
1458	1458	43 HB 2844 18
1459	1459	K.S.A. 75-643, and amendments thereto, if, at the time of contribution to a
1460	1460	family postsecondary education savings account, such amounts were
1461	1461	subtracted from the federal adjusted gross income pursuant to subsection
1462	1462	(c)(xv) or if such amounts are not already included in the federal adjusted
1463	1463	gross income.
1464	1464	(xi) The amount of any contribution made to the same extent the
1465	1465	same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-
1466	1466	50,154, and amendments thereto.
1467	1467	(xii) For taxable years commencing after December 31, 2004,
1468	1468	amounts received as withdrawals not in accordance with the provisions of
1469	1469	K.S.A. 74-50,204, and amendments thereto, if, at the time of contribution
1470	1470	to an individual development account, such amounts were subtracted from
1471	1471	the federal adjusted gross income pursuant to subsection (c)(xiii), or if
1472	1472	such amounts are not already included in the federal adjusted gross
1473	1473	income.
1474	1474	(xiii) The amount of any expenditures claimed for deduction in
1475	1475	determining federal adjusted gross income, to the extent the same is
1476	1476	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,217
1477	1477	through 79-32,220 or 79-32,222, and amendments thereto.
1478	1478	(xiv) The amount of any amortization deduction claimed in
1479	1479	determining federal adjusted gross income to the extent the same is
1480	1480	claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
1481	1481	thereto.
1482	1482	(xv) The amount of any expenditures claimed for deduction in
1483	1483	determining federal adjusted gross income, to the extent the same is
1484	1484	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,223
1485	1485	through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79-
1486	1486	32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79-
1487	1487	32,251 through 79-32,254, and amendments thereto.
1488	1488	(xvi) The amount of any amortization deduction claimed in
1489	1489	determining federal adjusted gross income to the extent the same is
1490	1490	claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
1491	1491	32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
1492	1492	(xvii) The amount of any amortization deduction claimed in
1493	1493	determining federal adjusted gross income to the extent the same is
1494	1494	claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
1495	1495	thereto.
1496	1496	(xviii) For taxable years commencing after December 31, 2006, the
1497	1497	amount of any ad valorem or property taxes and assessments paid to a state
1498	1498	other than Kansas or local government located in a state other than Kansas
1499	1499	by a taxpayer who resides in a state other than Kansas, when the law of
1500	1500	such state does not allow a resident of Kansas who earns income in such
1501	1501	other state to claim a deduction for ad valorem or property taxes or
1502	1502	1
1503	1503	2
1504	1504	3
1505	1505	4
1506	1506	5
1507	1507	6
1508	1508	7
1509	1509	8
1510	1510	9
1511	1511	10
1512	1512	11
1513	1513	12
1514	1514	13
1515	1515	14
1516	1516	15
1517	1517	16
1518	1518	17
1519	1519	18
1520	1520	19
1521	1521	20
1522	1522	21
1523	1523	22
1524	1524	23
1525	1525	24
1526	1526	25
1527	1527	26
1528	1528	27
1529	1529	28
1530	1530	29
1531	1531	30
1532	1532	31
1533	1533	32
1534	1534	33
1535	1535	34
1536	1536	35
1537	1537	36
1538	1538	37
1539	1539	38
1540	1540	39
1541	1541	40
1542	1542	41
1543	1543	42
1544	1544	43 HB 2844 19
1545	1545	assessments paid to a political subdivision of the state of Kansas in
1546	1546	determining taxable income for income tax purposes in such other state, to
1547	1547	the extent that such taxes and assessments are claimed as an itemized
1548	1548	deduction for federal income tax purposes.
1549	1549	(xix) For taxable years beginning after December 31, 2012, and
1550	1550	ending before January 1, 2017, the amount of any: (1) Loss from business
1551	1551	as determined under the federal internal revenue code and reported from
1552	1552	schedule C and on line 12 of the taxpayer's form 1040 federal individual
1553	1553	income tax return; (2) loss from rental real estate, royalties, partnerships, S
1554	1554	corporations, except those with wholly owned subsidiaries subject to the
1555	1555	Kansas privilege tax, estates, trusts, residual interest in real estate
1556	1556	mortgage investment conduits and net farm rental as determined under the
1557	1557	federal internal revenue code and reported from schedule E and on line 17
1558	1558	of the taxpayer's form 1040 federal individual income tax return; and (3)
1559	1559	farm loss as determined under the federal internal revenue code and
1560	1560	reported from schedule F and on line 18 of the taxpayer's form 1040
1561	1561	federal income tax return; all to the extent deducted or subtracted in
1562	1562	determining the taxpayer's federal adjusted gross income. For purposes of
1563	1563	this subsection, references to the federal form 1040 and federal schedule
1564	1564	C, schedule E, and schedule F, shall be to such form and schedules as they
1565	1565	existed for tax year 2011, and as revised thereafter by the internal revenue
1566	1566	service.
1567	1567	(xx) For taxable years beginning after December 31, 2012, and
1568	1568	ending before January 1, 2017, the amount of any deduction for self-
1569	1569	employment taxes under section 164(f) of the federal internal revenue
1570	1570	code as in effect on January 1, 2012, and amendments thereto, in
1571	1571	determining the federal adjusted gross income of an individual taxpayer, to
1572	1572	the extent the deduction is attributable to income reported on schedule C,
1573	1573	E or F and on line 12, 17 or 18 of the taxpayer's form 1040 federal income
1574	1574	tax return.
1575	1575	(xxi) For taxable years beginning after December 31, 2012, and
1576	1576	ending before January 1, 2017, the amount of any deduction for pension,
1577	1577	profit sharing, and annuity plans of self-employed individuals under
1578	1578	section 62(a)(6) of the federal internal revenue code as in effect on January
1579	1579	1, 2012, and amendments thereto, in determining the federal adjusted gross
1580	1580	income of an individual taxpayer.
1581	1581	(xxii) For taxable years beginning after December 31, 2012, and
1582	1582	ending before January 1, 2017, the amount of any deduction for health
1583	1583	insurance under section 162(l) of the federal internal revenue code as in
1584	1584	effect on January 1, 2012, and amendments thereto, in determining the
1585	1585	federal adjusted gross income of an individual taxpayer.
1586	1586	(xxiii) For taxable years beginning after December 31, 2012, and
1587	1587	ending before January 1, 2017, the amount of any deduction for domestic
1588	1588	1
1589	1589	2
1590	1590	3
1591	1591	4
1592	1592	5
1593	1593	6
1594	1594	7
1595	1595	8
1596	1596	9
1597	1597	10
1598	1598	11
1599	1599	12
1600	1600	13
1601	1601	14
1602	1602	15
1603	1603	16
1604	1604	17
1605	1605	18
1606	1606	19
1607	1607	20
1608	1608	21
1609	1609	22
1610	1610	23
1611	1611	24
1612	1612	25
1613	1613	26
1614	1614	27
1615	1615	28
1616	1616	29
1617	1617	30
1618	1618	31
1619	1619	32
1620	1620	33
1621	1621	34
1622	1622	35
1623	1623	36
1624	1624	37
1625	1625	38
1626	1626	39
1627	1627	40
1628	1628	41
1629	1629	42
1630	1630	43 HB 2844 20
1631	1631	production activities under section 199 of the federal internal revenue code
1632	1632	as in effect on January 1, 2012, and amendments thereto, in determining
1633	1633	the federal adjusted gross income of an individual taxpayer.
1634	1634	(xxiv) For taxable years commencing after December 31, 2013, that
1635	1635	portion of the amount of any expenditure deduction claimed in
1636	1636	determining federal adjusted gross income for expenses paid for medical
1637	1637	care of the taxpayer or the taxpayer's spouse or dependents when such
1638	1638	expenses were paid or incurred for an abortion, or for a health benefit plan,
1639	1639	as defined in K.S.A. 65-6731, and amendments thereto, for the purchase of
1640	1640	an optional rider for coverage of abortion in accordance with K.S.A. 40-
1641	1641	2,190, and amendments thereto, to the extent that such taxes and
1642	1642	assessments are claimed as an itemized deduction for federal income tax
1643	1643	purposes.
1644	1644	(xxv) For taxable years commencing after December 31, 2013, that
1645	1645	portion of the amount of any expenditure deduction claimed in
1646	1646	determining federal adjusted gross income for expenses paid by a taxpayer
1647	1647	for health care when such expenses were paid or incurred for abortion
1648	1648	coverage, a health benefit plan, as defined in K.S.A. 65-6731, and
1649	1649	amendments thereto, when such expenses were paid or incurred for
1650	1650	abortion coverage or amounts contributed to health savings accounts for
1651	1651	such taxpayer's employees for the purchase of an optional rider for
1652	1652	coverage of abortion in accordance with K.S.A. 40-2,190, and
1653	1653	amendments thereto, to the extent that such taxes and assessments are
1654	1654	claimed as a deduction for federal income tax purposes.
1655	1655	(xxvi) For all taxable years beginning after December 31, 2016, the
1656	1656	amount of any charitable contribution made to the extent the same is
1657	1657	claimed as the basis for the credit allowed pursuant to K.S.A. 72-4357, and
1658	1658	amendments thereto, and is also claimed as an itemized deduction for
1659	1659	federal income tax purposes.
1660	1660	(xxvii) For all taxable years commencing after December 31, 2020,
1661	1661	the amount deducted by reason of a carryforward of disallowed business
1662	1662	interest pursuant to section 163(j) of the federal internal revenue code of
1663	1663	1986, as in effect on January 1, 2018.
1664	1664	(xxviii) For all taxable years beginning after December 31, 2021, the
1665	1665	amount of any contributions to, or earnings from, a first-time home buyer
1666	1666	savings account if distributions from the account were not used to pay for
1667	1667	expenses or transactions authorized pursuant to K.S.A. 2023 Supp. 58-
1668	1668	4904, and amendments thereto, or were not held for the minimum length
1669	1669	of time required pursuant to K.S.A. 2023 Supp. 58-4904, and amendments
1670	1670	thereto. Contributions to, or earnings from, such account shall also include
1671	1671	any amount resulting from the account holder not designating a surviving
1672	1672	payable on death beneficiary pursuant to K.S.A. 2023 Supp. 58-4904(e),
1673	1673	and amendments thereto.
1674	1674	1
1675	1675	2
1676	1676	3
1677	1677	4
1678	1678	5
1679	1679	6
1680	1680	7
1681	1681	8
1682	1682	9
1683	1683	10
1684	1684	11
1685	1685	12
1686	1686	13
1687	1687	14
1688	1688	15
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1690	1690	17
1691	1691	18
1692	1692	19
1693	1693	20
1694	1694	21
1695	1695	22
1696	1696	23
1697	1697	24
1698	1698	25
1699	1699	26
1700	1700	27
1701	1701	28
1702	1702	29
1703	1703	30
1704	1704	31
1705	1705	32
1706	1706	33
1707	1707	34
1708	1708	35
1709	1709	36
1710	1710	37
1711	1711	38
1712	1712	39
1713	1713	40
1714	1714	41
1715	1715	42
1716	1716	43 HB 2844 21
1717	1717	(c) There shall be subtracted from federal adjusted gross income:
1718	1718	(i) Interest or dividend income on obligations or securities of any
1719	1719	authority, commission or instrumentality of the United States and its
1720	1720	possessions less any related expenses directly incurred in the purchase of
1721	1721	such obligations or securities, to the extent included in federal adjusted
1722	1722	gross income but exempt from state income taxes under the laws of the
1723	1723	United States.
1724	1724	(ii) Any amounts received which are included in federal adjusted
1725	1725	gross income but which are specifically exempt from Kansas income
1726	1726	taxation under the laws of the state of Kansas.
1727	1727	(iii) The portion of any gain or loss from the sale or other disposition
1728	1728	of property having a higher adjusted basis for Kansas income tax purposes
1729	1729	than for federal income tax purposes on the date such property was sold or
1730	1730	disposed of in a transaction in which gain or loss was recognized for
1731	1731	purposes of federal income tax that does not exceed such difference in
1732	1732	basis, but if a gain is considered a long-term capital gain for federal
1733	1733	income tax purposes, the modification shall be limited to that portion of
1734	1734	such gain which is included in federal adjusted gross income.
1735	1735	(iv) The amount necessary to prevent the taxation under this act of
1736	1736	any annuity or other amount of income or gain which was properly
1737	1737	included in income or gain and was taxed under the laws of this state for a
1738	1738	taxable year prior to the effective date of this act, as amended, to the
1739	1739	taxpayer, or to a decedent by reason of whose death the taxpayer acquired
1740	1740	the right to receive the income or gain, or to a trust or estate from which
1741	1741	the taxpayer received the income or gain.
1742	1742	(v) The amount of any refund or credit for overpayment of taxes on
1743	1743	or measured by income or fees or payments in lieu of income taxes
1744	1744	imposed by this state, or any taxing jurisdiction, to the extent included in
1745	1745	gross income for federal income tax purposes.
1746	1746	(vi) Accumulation distributions received by a taxpayer as a
1747	1747	beneficiary of a trust to the extent that the same are included in federal
1748	1748	adjusted gross income.
1749	1749	(vii) Amounts received as annuities under the federal civil service
1750	1750	retirement system from the civil service retirement and disability fund and
1751	1751	other amounts received as retirement benefits in whatever form which
1752	1752	were earned for being employed by the federal government or for service
1753	1753	in the armed forces of the United States.
1754	1754	(viii) Amounts received by retired railroad employees as a
1755	1755	supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
1756	1756	228c(a)(1) et seq.
1757	1757	(ix) Amounts received by retired employees of a city and by retired
1758	1758	employees of any board of such city as retirement allowances pursuant to
1759	1759	K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
1760	1760	1
1761	1761	2
1762	1762	3
1763	1763	4
1764	1764	5
1765	1765	6
1766	1766	7
1767	1767	8
1768	1768	9
1769	1769	10
1770	1770	11
1771	1771	12
1772	1772	13
1773	1773	14
1774	1774	15
1775	1775	16
1776	1776	17
1777	1777	18
1778	1778	19
1779	1779	20
1780	1780	21
1781	1781	22
1782	1782	23
1783	1783	24
1784	1784	25
1785	1785	26
1786	1786	27
1787	1787	28
1788	1788	29
1789	1789	30
1790	1790	31
1791	1791	32
1792	1792	33
1793	1793	34
1794	1794	35
1795	1795	36
1796	1796	37
1797	1797	38
1798	1798	39
1799	1799	40
1800	1800	41
1801	1801	42
1802	1802	43 HB 2844 22
1803	1803	ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
1804	1804	amendments thereto.
1805	1805	(x) For taxable years beginning after December 31, 1976, the amount
1806	1806	of the federal tentative jobs tax credit disallowance under the provisions of
1807	1807	26 U.S.C. § 280C. For taxable years ending after December 31, 1978, the
1808	1808	amount of the targeted jobs tax credit and work incentive credit
1809	1809	disallowances under 26 U.S.C. § 280C.
1810	1810	(xi) For taxable years beginning after December 31, 1986, dividend
1811	1811	income on stock issued by Kansas venture capital, inc.
1812	1812	(xii) For taxable years beginning after December 31, 1989, amounts
1813	1813	received by retired employees of a board of public utilities as pension and
1814	1814	retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249,
1815	1815	and amendments thereto.
1816	1816	(xiii) For taxable years beginning after December 31, 2004, amounts
1817	1817	contributed to and the amount of income earned on contributions deposited
1818	1818	to an individual development account under K.S.A. 74-50,201 et seq., and
1819	1819	amendments thereto.
1820	1820	(xiv) For all taxable years commencing after December 31, 1996, that
1821	1821	portion of any income of a bank organized under the laws of this state or
1822	1822	any other state, a national banking association organized under the laws of
1823	1823	the United States, an association organized under the savings and loan
1824	1824	code of this state or any other state, or a federal savings association
1825	1825	organized under the laws of the United States, for which an election as an
1826	1826	S corporation under subchapter S of the federal internal revenue code is in
1827	1827	effect, which accrues to the taxpayer who is a stockholder of such
1828	1828	corporation and which is not distributed to the stockholders as dividends of
1829	1829	the corporation. For taxable years beginning after December 31, 2012, and
1830	1830	ending before January 1, 2017, the amount of modification under this
1831	1831	subsection shall exclude the portion of income or loss reported on schedule
1832	1832	E and included on line 17 of the taxpayer's form 1040 federal individual
1833	1833	income tax return.
1834	1834	(xv) For all taxable years beginning after December 31, 2017, the
1835	1835	cumulative amounts not exceeding $3,000, or $6,000 for a married couple
1836	1836	filing a joint return, for each designated beneficiary that are contributed to:
1837	1837	(1) A family postsecondary education savings account established under
1838	1838	the Kansas postsecondary education savings program or a qualified tuition
1839	1839	program established and maintained by another state or agency or
1840	1840	instrumentality thereof pursuant to section 529 of the internal revenue
1841	1841	code of 1986, as amended, for the purpose of paying the qualified higher
1842	1842	education expenses of a designated beneficiary; or (2) an achieving a
1843	1843	better life experience (ABLE) account established under the Kansas ABLE
1844	1844	savings program or a qualified ABLE program established and maintained
1845	1845	by another state or agency or instrumentality thereof pursuant to section
1846	1846	1
1847	1847	2
1848	1848	3
1849	1849	4
1850	1850	5
1851	1851	6
1852	1852	7
1853	1853	8
1854	1854	9
1855	1855	10
1856	1856	11
1857	1857	12
1858	1858	13
1859	1859	14
1860	1860	15
1861	1861	16
1862	1862	17
1863	1863	18
1864	1864	19
1865	1865	20
1866	1866	21
1867	1867	22
1868	1868	23
1869	1869	24
1870	1870	25
1871	1871	26
1872	1872	27
1873	1873	28
1874	1874	29
1875	1875	30
1876	1876	31
1877	1877	32
1878	1878	33
1879	1879	34
1880	1880	35
1881	1881	36
1882	1882	37
1883	1883	38
1884	1884	39
1885	1885	40
1886	1886	41
1887	1887	42
1888	1888	43 HB 2844 23
1889	1889	529A of the internal revenue code of 1986, as amended, for the purpose of
1890	1890	saving private funds to support an individual with a disability. The terms
1891	1891	and phrases used in this paragraph shall have the meaning respectively
1892	1892	ascribed thereto by the provisions of K.S.A. 75-643 and 75-652, and
1893	1893	amendments thereto, and the provisions of such sections are hereby
1894	1894	incorporated by reference for all purposes thereof.
1895	1895	(xvi) For all taxable years beginning after December 31, 2004,
1896	1896	amounts received by taxpayers who are or were members of the armed
1897	1897	forces of the United States, including service in the Kansas army and air
1898	1898	national guard, as a recruitment, sign up or retention bonus received by
1899	1899	such taxpayer as an incentive to join, enlist or remain in the armed services
1900	1900	of the United States, including service in the Kansas army and air national
1901	1901	guard, and amounts received for repayment of educational or student loans
1902	1902	incurred by or obligated to such taxpayer and received by such taxpayer as
1903	1903	a result of such taxpayer's service in the armed forces of the United States,
1904	1904	including service in the Kansas army and air national guard.
1905	1905	(xvii) For all taxable years beginning after December 31, 2004,
1906	1906	amounts received by taxpayers who are eligible members of the Kansas
1907	1907	army and air national guard as a reimbursement pursuant to K.S.A. 48-
1908	1908	281, and amendments thereto, and amounts received for death benefits
1909	1909	pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
1910	1910	such death benefits are included in federal adjusted gross income of the
1911	1911	taxpayer.
1912	1912	(xviii) For the taxable year beginning after December 31, 2006,
1913	1913	amounts received as benefits under the federal social security act which
1914	1914	are included in federal adjusted gross income of a taxpayer with federal
1915	1915	adjusted gross income of $50,000 or less, whether such taxpayer's filing
1916	1916	status is single, head of household, married filing separate or married filing
1917	1917	jointly; and (A) For all taxable years beginning after December 31, 2007,
1918	1918	and ending before January 1, 2027, amounts received as benefits under the
1919	1919	federal social security act which are included in federal adjusted gross
1920	1920	income of a taxpayer with federal adjusted gross income of $75,000 or
1921	1921	less, whether such taxpayer's filing status is single, head of household,
1922	1922	married filing separate or married filing jointly.
1923	1923	(B) For the taxable year beginning after December 31, 2023, and
1924	1924	ending before January 1, 2025, a portion of amounts received as benefits
1925	1925	under the federal social security act that are included in federal adjusted
1926	1926	gross income of a taxpayer with federal adjusted gross income greater
1927	1927	than $75,000 and less than $125,000, whether that taxpayer's filing status
1928	1928	is single, head of household, married filing separate or married filing
1929	1929	jointly, calculated as follows:
1930	1930	(1) Subtract an amount equal to the federal adjusted gross income of
1931	1931	that taxpayer from 125,000 (the result must be greater than zero);
1932	1932	1
1933	1933	2
1934	1934	3
1935	1935	4
1936	1936	5
1937	1937	6
1938	1938	7
1939	1939	8
1940	1940	9
1941	1941	10
1942	1942	11
1943	1943	12
1944	1944	13
1945	1945	14
1946	1946	15
1947	1947	16
1948	1948	17
1949	1949	18
1950	1950	19
1951	1951	20
1952	1952	21
1953	1953	22
1954	1954	23
1955	1955	24
1956	1956	25
1957	1957	26
1958	1958	27
1959	1959	28
1960	1960	29
1961	1961	30
1962	1962	31
1963	1963	32
1964	1964	33
1965	1965	34
1966	1966	35
1967	1967	36
1968	1968	37
1969	1969	38
1970	1970	39
1971	1971	40
1972	1972	41
1973	1973	42
1974	1974	43 HB 2844 24
1975	1975	(2) divide the result of subparagraph (B)(1) by 50,000; and
1976	1976	(3) multiply the result of subparagraph (B)(2) by the amount in
1977	1977	dollars received as benefits under the federal social security act that are
1978	1978	included in federal adjusted gross income of that taxpayer to determine
1979	1979	the modification pursuant to this subparagraph.
1980	1980	(C) For the taxable year beginning after December 31, 2024, and
1981	1981	ending before January 1, 2026, a portion of amounts received as benefits
1982	1982	under the federal social security act that are included in federal adjusted
1983	1983	gross income of a taxpayer with federal adjusted gross income greater
1984	1984	than $75,000 and less than $175,000, whether that taxpayer's filing status
1985	1985	is single, head of household, married filing separate or married filing
1986	1986	jointly, calculated as follows:
1987	1987	(1) Subtract an amount equal to the federal adjusted gross income of
1988	1988	that taxpayer from 175,000 (the result must be greater than zero);
1989	1989	(2) divide the result of subparagraph (C)(1) by 100,000; and
1990	1990	(3) multiply the result of subparagraph (C)(2) by the amount in
1991	1991	dollars received as benefits under the federal social security act that are
1992	1992	included in federal adjusted gross income of that taxpayer to determine
1993	1993	the modification pursuant to this subparagraph.
1994	1994	(D) For the taxable year beginning after December 31, 2025, and
1995	1995	ending before January 1, 2027, a portion of amounts received as benefits
1996	1996	under the federal social security act that are included in federal adjusted
1997	1997	gross income of a taxpayer with federal adjusted gross income greater
1998	1998	than $75,000 and less than $275,000, whether that taxpayer's filing status
1999	1999	is single, head of household, married filing separate or married filing
2000	2000	jointly, calculated as follows:
2001	2001	(1) Subtract an amount equal to the federal adjusted gross income of
2002	2002	that taxpayer from 275,000 (the result must be greater than zero);
2003	2003	(2) divide the result of subparagraph (D)(1) by 200,000; and
2004	2004	(3) multiply the result of subparagraph (D)(2) by the amount in
2005	2005	dollars received as benefits under the federal social security act that are
2006	2006	included in federal adjusted gross income of that taxpayer to determine
2007	2007	the modification pursuant to this subparagraph.
2008	2008	(E) For all taxable years beginning after December 31, 2026,
2009	2009	amounts received as benefits under the federal social security act that are
2010	2010	included in federal adjusted gross income of a taxpayer.
2011	2011	(xix) Amounts received by retired employees of Washburn university
2012	2012	as retirement and pension benefits under the university's retirement plan.
2013	2013	(xx) For taxable years beginning after December 31, 2012, and
2014	2014	ending before January 1, 2017, the amount of any: (1) Net profit from
2015	2015	business as determined under the federal internal revenue code and
2016	2016	reported from schedule C and on line 12 of the taxpayer's form 1040
2017	2017	federal individual income tax return; (2) net income, not including
2018	2018	1
2019	2019	2
2020	2020	3
2021	2021	4
2022	2022	5
2023	2023	6
2024	2024	7
2025	2025	8
2026	2026	9
2027	2027	10
2028	2028	11
2029	2029	12
2030	2030	13
2031	2031	14
2032	2032	15
2033	2033	16
2034	2034	17
2035	2035	18
2036	2036	19
2037	2037	20
2038	2038	21
2039	2039	22
2040	2040	23
2041	2041	24
2042	2042	25
2043	2043	26
2044	2044	27
2045	2045	28
2046	2046	29
2047	2047	30
2048	2048	31
2049	2049	32
2050	2050	33
2051	2051	34
2052	2052	35
2053	2053	36
2054	2054	37
2055	2055	38
2056	2056	39
2057	2057	40
2058	2058	41
2059	2059	42
2060	2060	43 HB 2844 25
2061	2061	guaranteed payments as defined in section 707(c) of the federal internal
2062	2062	revenue code and as reported to the taxpayer from federal schedule K-1,
2063	2063	(form 1065-B), in box 9, code F or as reported to the taxpayer from federal
2064	2064	schedule K-1, (form 1065) in box 4, from rental real estate, royalties,
2065	2065	partnerships, S corporations, estates, trusts, residual interest in real estate
2066	2066	mortgage investment conduits and net farm rental as determined under the
2067	2067	federal internal revenue code and reported from schedule E and on line 17
2068	2068	of the taxpayer's form 1040 federal individual income tax return; and (3)
2069	2069	net farm profit as determined under the federal internal revenue code and
2070	2070	reported from schedule F and on line 18 of the taxpayer's form 1040
2071	2071	federal income tax return; all to the extent included in the taxpayer's
2072	2072	federal adjusted gross income. For purposes of this subsection, references
2073	2073	to the federal form 1040 and federal schedule C, schedule E, and schedule
2074	2074	F, shall be to such form and schedules as they existed for tax year 2011
2075	2075	and as revised thereafter by the internal revenue service.
2076	2076	(xxi) For all taxable years beginning after December 31, 2013,
2077	2077	amounts equal to the unreimbursed travel, lodging and medical
2078	2078	expenditures directly incurred by a taxpayer while living, or a dependent
2079	2079	of the taxpayer while living, for the donation of one or more human organs
2080	2080	of the taxpayer, or a dependent of the taxpayer, to another person for
2081	2081	human organ transplantation. The expenses may be claimed as a
2082	2082	subtraction modification provided for in this section to the extent the
2083	2083	expenses are not already subtracted from the taxpayer's federal adjusted
2084	2084	gross income. In no circumstances shall the subtraction modification
2085	2085	provided for in this section for any individual, or a dependent, exceed
2086	2086	$5,000. As used in this section, "human organ" means all or part of a liver,
2087	2087	pancreas, kidney, intestine, lung or bone marrow. The provisions of this
2088	2088	paragraph shall take effect on the day the secretary of revenue certifies to
2089	2089	the director of the budget that the cost for the department of revenue of
2090	2090	modifications to the automated tax system for the purpose of
2091	2091	implementing this paragraph will not exceed $20,000.
2092	2092	(xxii) For taxable years beginning after December 31, 2012, and
2093	2093	ending before January 1, 2017, the amount of net gain from the sale of: (1)
2094	2094	Cattle and horses, regardless of age, held by the taxpayer for draft,
2095	2095	breeding, dairy or sporting purposes, and held by such taxpayer for 24
2096	2096	months or more from the date of acquisition; and (2) other livestock,
2097	2097	regardless of age, held by the taxpayer for draft, breeding, dairy or
2098	2098	sporting purposes, and held by such taxpayer for 12 months or more from
2099	2099	the date of acquisition. The subtraction from federal adjusted gross income
2100	2100	shall be limited to the amount of the additions recognized under the
2101	2101	provisions of subsection (b)(xix) attributable to the business in which the
2102	2102	livestock sold had been used. As used in this paragraph, the term
2103	2103	"livestock" shall not include poultry.
2104	2104	1
2105	2105	2
2106	2106	3
2107	2107	4
2108	2108	5
2109	2109	6
2110	2110	7
2111	2111	8
2112	2112	9
2113	2113	10
2114	2114	11
2115	2115	12
2116	2116	13
2117	2117	14
2118	2118	15
2119	2119	16
2120	2120	17
2121	2121	18
2122	2122	19
2123	2123	20
2124	2124	21
2125	2125	22
2126	2126	23
2127	2127	24
2128	2128	25
2129	2129	26
2130	2130	27
2131	2131	28
2132	2132	29
2133	2133	30
2134	2134	31
2135	2135	32
2136	2136	33
2137	2137	34
2138	2138	35
2139	2139	36
2140	2140	37
2141	2141	38
2142	2142	39
2143	2143	40
2144	2144	41
2145	2145	42
2146	2146	43 HB 2844 26
2147	2147	(xxiii) For all taxable years beginning after December 31, 2012,
2148	2148	amounts received under either the Overland Park, Kansas police
2149	2149	department retirement plan or the Overland Park, Kansas fire department
2150	2150	retirement plan, both as established by the city of Overland Park, pursuant
2151	2151	to the city's home rule authority.
2152	2152	(xxiv) For taxable years beginning after December 31, 2013, and
2153	2153	ending before January 1, 2017, the net gain from the sale from Christmas
2154	2154	trees grown in Kansas and held by the taxpayer for six years or more.
2155	2155	(xxv) For all taxable years commencing after December 31, 2020,
2156	2156	100% of global intangible low-taxed income under section 951A of the
2157	2157	federal internal revenue code of 1986, before any deductions allowed
2158	2158	under section 250(a)(1)(B) of such code.
2159	2159	(xxvi) For all taxable years commencing after December 31, 2020,
2160	2160	the amount disallowed as a deduction pursuant to section 163(j) of the
2161	2161	federal internal revenue code of 1986, as in effect on January 1, 2018.
2162	2162	(xxvii) For taxable years commencing after December 31, 2020, the
2163	2163	amount disallowed as a deduction pursuant to section 274 of the federal
2164	2164	internal revenue code of 1986 for meal expenditures shall be allowed to
2165	2165	the extent such expense was deductible for determining federal income tax
2166	2166	and was allowed and in effect on December 31, 2017.
2167	2167	(xxviii) For all taxable years beginning after December 31, 2021: (1)
2168	2168	The amount contributed to a first-time home buyer savings account
2169	2169	pursuant to K.S.A. 2023 Supp. 58-4903, and amendments thereto, in an
2170	2170	amount not to exceed $3,000 for an individual or $6,000 for a married
2171	2171	couple filing a joint return; or (2) amounts received as income earned from
2172	2172	assets in a first-time home buyer savings account.
2173	2173	(d) There shall be added to or subtracted from federal adjusted gross
2174	2174	income the taxpayer's share, as beneficiary of an estate or trust, of the
2175	2175	Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and
2176	2176	amendments thereto.
2177	2177	(e) The amount of modifications required to be made under this
2178	2178	section by a partner which relates to items of income, gain, loss, deduction
2179	2179	or credit of a partnership shall be determined under K.S.A. 79-32,131, and
2180	2180	amendments thereto, to the extent that such items affect federal adjusted
2181	2181	gross income of the partner.
2182	2182	Sec. 16. K.S.A. 2023 Supp. 79-32,119 is hereby amended to read as
2183	2183	follows: 79-32,119. (a) The Kansas standard deduction of an individual,
2184	2184	including a husband and wife who are either both residents or who file a
2185	2185	joint return as if both were residents, shall be equal to the sum of the
2186	2186	standard deduction amount allowed pursuant to this section, and the
2187	2187	additional standard deduction amount allowed pursuant to this section for
2188	2188	each such deduction allowable to such individual or to such husband and
2189	2189	wife under the federal internal revenue code.
2190	2190	1
2191	2191	2
2192	2192	3
2193	2193	4
2194	2194	5
2195	2195	6
2196	2196	7
2197	2197	8
2198	2198	9
2199	2199	10
2200	2200	11
2201	2201	12
2202	2202	13
2203	2203	14
2204	2204	15
2205	2205	16
2206	2206	17
2207	2207	18
2208	2208	19
2209	2209	20
2210	2210	21
2211	2211	22
2212	2212	23
2213	2213	24
2214	2214	25
2215	2215	26
2216	2216	27
2217	2217	28
2218	2218	29
2219	2219	30
2220	2220	31
2221	2221	32
2222	2222	33
2223	2223	34
2224	2224	35
2225	2225	36
2226	2226	37
2227	2227	38
2228	2228	39
2229	2229	40
2230	2230	41
2231	2231	42
2232	2232	43 HB 2844 27
2233	2233	(b) For tax year 1998, and all tax years thereafter, the additional
2234	2234	standard deduction amount shall be as follows: Single individual and head
2235	2235	of household filing status, $850; and married filing status, $700.
2236	2236	(c) (1) For tax year 2013 through tax year 2020, the standard
2237	2237	deduction amount of an individual, including husband and wife who are
2238	2238	either both residents or who file a joint return as if both were residents,
2239	2239	shall be as follows: Single individual filing status, $3,000; married filing
2240	2240	status, $7,500; and head of household filing status, $5,500.
2241	2241	(2) For tax year years 2021, and all tax years thereafter through 2023,
2242	2242	the standard deduction amount of an individual, including husband and
2243	2243	wife who are either both residents or who file a joint return as if both were
2244	2244	residents, shall be as follows: Single individual filing status, $3,500;
2245	2245	married filing status, $8,000; and head of household filing status, $6,000.
2246	2246	(2) For tax year 2024, and all tax years thereafter, the standard
2247	2247	deduction amount of an individual, including husband and wife who are
2248	2248	either both residents or who file a joint return as if both were residents,
2249	2249	shall be as follows: Single individual filing status, $3,605; married filing
2250	2250	status, $8,240; and head of household filing status, $6,180.
2251	2251	(3) In the case of tax years 2025 and 2026, the amounts prescribed in
2252	2252	paragraph (2) and any subsequent changes pursuant to this paragraph
2253	2253	shall be increased by an amount equal to such amount multiplied by the
2254	2254	cost-of-living adjustment determined under section 1(f)(3) of the federal
2255	2255	internal revenue code for the calendar year in which the taxable year
2256	2256	commences. Any increase in the standard deduction provided by this
2257	2257	paragraph shall remain in effect unless further increased pursuant to this
2258	2258	paragraph. For tax years 2027 and 2028, and all tax years thereafter,
2259	2259	further increases shall be made only if authorized by legislative
2260	2260	enactment.
2261	2261	(d) For purposes of this section, the federal standard deduction
2262	2262	allowable to a husband and wife filing separate Kansas income tax returns
2263	2263	shall be determined on the basis that separate federal returns were filed,
2264	2264	and the federal standard deduction of a husband and wife filing a joint
2265	2265	Kansas income tax return shall be determined on the basis that a joint
2266	2266	federal income tax return was filed.
2267	2267	Sec. 17. K.S.A. 2023 Supp. 79-32,121 is hereby amended to read as
2268	2268	follows: 79-32,121. (a) For tax year 2024, and all tax years thereafter, an
2269	2269	individual shall be allowed a Kansas exemption of $2,250 $2,320 for each
2270	2270	exemption for which such individual is entitled to a deduction for the
2271	2271	taxable year for federal income tax purposes.
2272	2272	(b) In addition to the exemptions provided in subsection (a), any
2273	2273	individual who has been honorably discharged from active service in any
2274	2274	branch of the armed forces of the United States and who is certified by the
2275	2275	United States department of veterans affairs or its successor to be in
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2319	2319	receipt of disability compensation at the 100% rate, if the disability is
2320	2320	permanent and was sustained through military action or accident or
2321	2321	resulted from disease contracted while in such active service, such
2322	2322	individual shall be allowed an additional Kansas exemption of $2,250 in
2323	2323	the amount prescribed in subsection (a) including any increases provided
2324	2324	for pursuant to subsection (c) for tax year 2023 2024 and all tax years
2325	2325	thereafter.
2326	2326	(c) In the case of tax years 2025 and 2026, the amount prescribed in
2327	2327	subsection (a) and any subsequent changes pursuant to this subsection
2328	2328	shall be increased by an amount equal to such amount multiplied by the
2329	2329	cost-of-living adjustment determined under section 1(f)(3) of the federal
2330	2330	internal revenue code for the calendar year in which the taxable year
2331	2331	commences. Any increase in the personal exemption provided by this
2332	2332	paragraph shall remain in effect unless further increased pursuant to this
2333	2333	paragraph. For tax years 2027 and 2028, and all tax years thereafter,
2334	2334	further increases shall be made only if authorized by legislative
2335	2335	enactment.
2336	2336	Sec. 18. K.S.A. 19-2694, 65-163j, 65-3306, 65-3327, 75-2556, 79-
2337	2337	1107, 79-1108, 79-1479, 79-2960, 79-2961, 79-2962, 79-2965, 79-2966
2338	2338	and 79-2967 and K.S.A. 2023 Supp. 72-5142, 74-8768, 79-201x, 79-2959,
2339	2339	79-2964, 79-2988, 79-32,110, 79-32,117, 79-32,119 and 79-32,121 are
2340	2340	hereby repealed.
2341	2341	Sec. 19. This act shall take effect and be in force from and after its
2342	2342	publication in the statute book.
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