Session of 2024
HOUSE BILL No. 2844
By Committee on Taxation
Requested by Representative A. Smith
3-19
AN ACT concerning taxation; relating to income tax; modifying tax rates
for individuals; increasing the income limit to qualify for a subtraction
modification for social security income; increasing the Kansas standard
deduction and Kansas personal exemption and further increasing by a
cost-of-living adjustment; relating to privilege tax; decreasing the
normal tax rate; relating to property tax; increasing the extent of
exemption for residential property from the statewide school levy;
decreasing the rate of ad valorem tax imposed by a school district;
abolishing the local ad valorem tax reduction fund and the county and
city revenue sharing fund; amending K.S.A. 65-163j, 65-3306, 65-
3327, 75-2556, 79-1107, 79-1108 and 79-1479 and K.S.A. 2023 Supp.
72-5142, 74-8768, 79-201x, 79-2988, 79-32,110, 79-32,117, 79-32,119
and 79-32,121 and repealing the existing sections; also repealing
K.S.A. 19-2694, 79-2960, 79-2961, 79-2962, 79-2965, 79-2966 and 79-
2967 and K.S.A. 2023 Supp. 79-2959 and 79-2964.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. On July 1, 2024, the director of accounts and reports
shall transfer all moneys in the local ad valorem tax reduction fund to the
state general fund. On July 1, 2024, all liabilities of the local ad valorem
tax reduction fund are hereby transferred to and imposed on the state
general fund, and the local ad valorem tax reduction fund is hereby
abolished.
New Sec. 2. On July 1, 2024, the director of accounts and reports
shall transfer all moneys in the county and city revenue sharing fund to the
state general fund. On July 1, 2024, all liabilities of the county and city
revenue sharing fund are hereby transferred to and imposed on the state
general fund, and the county and city revenue sharing fund is hereby
abolished.
Sec. 3. K.S.A. 65-163j is hereby amended to read as follows: 65-163j.
(a) The dedicated source of revenue for repayment of a loan to a
municipality may include service charges, connection fees, special
assessments, property taxes, grants or any other source of revenue lawfully
available to the municipality for such purpose. In order to ensure
repayment by municipalities of the amounts of loans provided under this
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act, the secretary, after consultation with the governing body of any
municipality which that receives a loan, may adopt charges to be levied
against individuals and entities served by the project. Any such charges
shall remain in effect until the total amount of the loan, and any interest
thereon, has been repaid. The charges shall, insofar as is practicable, be
equitably assessed and may be in the form of a surcharge to the existing
charges of the municipality. The governing body of any municipality
which that receives a loan under this act shall collect any charges
established by the secretary and shall pay the moneys collected therefrom
to the secretary in accordance with procedures established by the secretary.
(b) Upon the failure of a municipality to meet the repayment terms
and conditions of the agreement, the secretary may order the treasurer of
the county in which the municipality is located to pay to the secretary such
portion of the municipality's share of the local ad valorem tax reduction
fund as may be necessary to meet the terms of the agreement,
notwithstanding the provisions of K.S.A. 79-2960 and 79-2961, and
amendments thereto. Upon the issuance of such an order, the municipality
shall not be required to make the tax levy reductions otherwise required by
K.S.A. 79-2960 and 79-2961, and amendments thereto.
(c) Municipalities which that are provided with loans under this act
shall maintain project accounts in accordance with generally accepted
government accounting standards.
(d)(c) Any loans received by a municipality under the provisions of
this act shall be construed to be bonds for the purposes of K.S.A. 10-1116
and 79-5028, and amendments thereto, and the amount of such loans shall
not be included within any limitation on the bonded indebtedness of the
municipality.
Sec. 4. K.S.A. 65-3306 is hereby amended to read as follows: 65-
3306. The secretary's annual request for appropriations to the water
pollution control account shall be based on an estimate of the fiscal needs
for the ensuing budget year, less any amounts received by the secretary
from any public or private grants or contributions and moneys in such
account shall be used solely for the purposes provided for by this act.
Moneys allocated to a municipality shall be encumbered as an expenditure
of this account upon the formal letting of a contract for the improvement
notwithstanding the date on which when actual payment is made of the
state financial assistance. Any municipality may contribute moneys to the
state water pollution control account. If there are no uncommitted or
unencumbered moneys in the water pollution control account, any
municipality applying for any water pollution control project as defined in
K.S.A. 65-3302, and amendments thereto, shall as a condition of such
application certify in writing to the secretary that a contribution in the
amount of twenty-five percent (25%) of the eligible cost of such project
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will be made to the water pollution control account by such municipality
prior to formal letting of a construction contract. Upon receipt by the
secretary, each such contribution shall be retained in a subaccount of the
water pollution control account for use solely in the project for which the
municipality has made application.
Notwithstanding the provisions of K.S.A. 79-2960 and 79-2961, any
municipality applying for such a water pollution control project may make
such contribution from all or such part of its share of the local ad valorem
tax reduction fund as may be necessary for such purpose, and to the extent
such fund is pledged and used for such purpose the municipality shall not
be required to make the tax levy reductions otherwise required by K.S.A.
79-2960 and 79-2961. Taxes levied by any municipality by reason of its
failure to make such reduction in its levies shall not be subject to or be
considered in computing the aggregate limitation upon the levy of taxes by
such municipality under the provisions of K.S.A. 79-5003.
Sec. 5. K.S.A. 65-3327 is hereby amended to read as follows: 65-
3327. (a) The dedicated source of revenue for repayment of the loans may
include service charges, connection fees, special assessments, property
taxes, grants or any other source of revenue lawfully available to the
municipality for such purpose. In order to ensure repayment by
municipalities of the amounts of loans provided under K.S.A. 65-3321
through 65-3329, and amendments thereto, the secretary, after consultation
with the governing body of any municipality which receives a loan, may
adopt charges to be levied against users of the project. Any such charges
shall remain in effect until the total amount of the loan, and any interest
thereon, has been repaid. The charges shall, insofar as is practicable, be
equitably assessed and may be in the form of a surcharge to the existing
charges of the municipality. The governing body of any municipality
which receives a loan under K.S.A. 65-3321 through 65-3329, and
amendments thereto, shall collect any charges established by the secretary
and shall pay the moneys collected therefrom to the secretary in
accordance with procedures established by the secretary.
(b) Upon the failure of a municipality to meet the repayment terms
and conditions of the agreement, the secretary may order the treasurer of
the county in which the municipality is located to pay to the secretary such
portion of the municipality's share of the local ad valorem tax reduction
fund as may be necessary to meet the terms of the agreement,
notwithstanding the provisions of K.S.A. 79-2960 and 79-2961 and
amendments thereto. Upon the issuance of such an order, the municipality
shall not be required to make the tax levy reductions otherwise required by
K.S.A. 79-2960 and 79-2961 and amendments thereto.
(c) Municipalities which that are provided with loans under K.S.A.
65-3321 through 65-3329, and amendments thereto, shall maintain project
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accounts in accordance with generally accepted government accounting
standards.
(d)(c) Municipalities which that receive a grant and an allowance
under the federal act with respect to project costs for which a loan was
provided under K.S.A. 65-3321 through 65-3329, and amendments
thereto, shall promptly repay such loan to the extent of the allowance
received under the federal act.
(e)(d) Any loans received by a municipality under the provisions of
K.S.A. 65-3321 through 65-3329, and amendments thereto, shall be
construed to be bonds for the purposes of K.S.A. 10-1116 and 79-5028,
and amendments thereto, and the amount of such loans shall not be
included within any limitation on the bonded indebtedness of the
municipality.
Sec. 6. K.S.A. 2023 Supp. 72-5142 is hereby amended to read as
follows: 72-5142. (a) The board of education of each school district shall
levy an ad valorem tax upon the taxable tangible property of the school
district in the school years specified in subsection (b) for the purpose of:
(1) Financing that portion of the school district's general fund budget
that is not financed from any other source provided by law;
(2) paying a portion of the costs of operating and maintaining public
schools in partial fulfillment of the constitutional obligation of the
legislature to finance the educational interests of the state; and
(3) with respect to any redevelopment school district established prior
to July 1, 1997, pursuant to K.S.A. 12-1771, and amendments thereto,
paying a portion of the principal and interest on bonds issued by cities
under authority of K.S.A. 12-1774, and amendments thereto, for the
financing of redevelopment projects upon property located within the
school district.
(b) The tax required under subsection (a) shall be levied at a rate of
20 18 mills in the school years 2023-2024 and 2024-2025 and 2025-2026.
(c) The proceeds from the tax levied by a district under authority of
this section, except the proceeds of such tax levied for the purpose
described in subsection (a)(3), shall be remitted to the state treasurer in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury to the credit of the state
school district finance fund.
(d) No school district shall proceed under K.S.A. 79-1964, 79-1964a
or 79-1964b, and amendments thereto.
Sec. 7. K.S.A. 2023 Supp. 74-8768 is hereby amended to read as
follows: 74-8768. (a) There is hereby created the expanded lottery act
revenues fund in the state treasury. All expenditures and transfers from
such fund shall be made in accordance with appropriation acts. All moneys
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credited to such fund shall be expended or transferred only for the
purposes of reduction of state debt, state infrastructure improvements, the
university engineering initiative act, reduction of local ad valorem tax in
the same manner as provided for allocation of amounts in the local ad
valorem tax reduction fund and reduction of the unfunded actuarial
liability of the system attributable to the state of Kansas and participating
employers under K.S.A. 74-4931, and amendments thereto, by the Kansas
public employees retirement system.
(b) On July 1, 2021, July 1, 2022, July 1, 2023, July 1, 2024, July 1,
2025, July 1, 2026, July 1, 2027, July 1, 2028, July 1, 2029, July 1, 2030,
and July 1, 2031, or as soon thereafter such date as moneys are available,
the first $10,500,000 credited to the expanded lottery act revenues fund
shall be transferred by the director of accounts and reports from the
expanded lottery act revenues fund in one or more substantially equal
amounts, to each of the following: The Kan-grow engineering fund – KU,
Kan-grow engineering fund – KSU and Kan-grow engineering fund –
WSU. Each such special revenue fund shall receive $3,500,000 annually in
each of such years. Commencing in fiscal year 2014, after such transfer
has been made, 50% of the remaining moneys credited to the fund shall be
transferred on a quarterly basis by the director of accounts and reports
from the fund to the Kansas public employees retirement system fund to
be applied to reduce the unfunded actuarial liability of the system
attributable to the state of Kansas and participating employers under
K.S.A. 74-4931 et seq., and amendments thereto, until the system as a
whole attains an 80% funding ratio as certified by the board of trustees of
the Kansas public employees retirement system.
Sec. 8. K.S.A. 75-2556 is hereby amended to read as follows: 75-
2556. (a) The state librarian shall determine the amount of the grant-in-aid
each eligible local public library is to receive based on the latest
population census figures as certified by the division of the budget.
(b) Except as provided by subsection (d), no local public library shall
be eligible for any state grants-in-aid if the total amount of the following
paragraphs is less than the total amount produced from such sources for
the same library for the previous year, based on the information contained
in the official annual budgets of municipalities that are filed with the
division of accounts and reports in accordance with K.S.A. 79-2930, and
amendments thereto:
(1) The amount produced by the local ad valorem tax levies for the
current year expenses for such library;
(2) the amount of moneys received from the local ad valorem tax
reduction fund for current year expenses for such library;
(3) the amount of moneys received from taxes levied upon motor
vehicles under the provisions of K.S.A. 79-5101 et seq., and amendments
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thereto, for current year expenses for such library; and
(4)(3) the amount of moneys received in the current year from
collections of unpaid local ad valorem tax levies for prior year expenses
for such library.
(c) Local public library districts in which the assessed valuation
decreases shall remain eligible for state grants-in-aid so long as the ad
valorem tax mill rate for the support of such library has not been reduced
below the mill rate imposed for such purpose for the previous year.
(d) If a local public library fails to qualify for eligibility for any state
grants-in-aid under subsection (b), the state librarian shall have the power
to continue the eligibility of a local public library for any state grants-in-
aid if the state librarian, after evaluation of all the circumstances,
determines that the legislative intent for maintenance of local tax levy
support for the on-going operations of the library is being met by the
library district.
(e) The distribution so determined shall be apportioned and paid on
February 15 of each year.
Sec. 9. K.S.A. 2023 Supp. 79-201x is hereby amended to read as
follows: 79-201x. (a) For taxable year 2022 2024, and all taxable years
thereafter, the following described property, to the extent herein specified,
shall be and is hereby exempt from the property tax levied pursuant to the
provisions of K.S.A. 72-5142, and amendments thereto: Property used for
residential purposes to the extent of $40,000 $80,000 of its appraised
valuation.
(b) For taxable year 2023 2025, and all taxable years thereafter, the
dollar amount of the extent of appraised valuation that is exempt pursuant
to subsection (a) and any subsequent changes pursuant to this subsection
shall be adjusted to reflect the average percentage change in statewide
residential valuation of all residential real property for the preceding 10
years. Such average percentage change shall not be less than zero. The
director of property valuation shall calculate the average percentage
change for purposes of this annual adjustment and calculate the dollar
amount of the extent of appraised valuation that is exempt pursuant to this
section each year.
Sec. 10. K.S.A. 79-1107 is hereby amended to read as follows: 79-
1107. (a) Every national banking association and state bank located or
doing business within the state shall pay to the state for the privilege of
doing business within the state a tax according to or measured by its net
income for the next preceding taxable year to be computed as provided in
this act. Such tax shall consist of a normal tax and a surtax and shall be
computed as follows:
(a)(1) (A) For tax year 2024, the normal tax shall be an amount equal
to 2
1
/4% 2.25% of such net income; and
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(B) for tax year 2025, and all tax years thereafter, the normal tax
shall be an amount equal to 1.63% of such net income; and
(b)(2) the surtax shall be an amount equal to 2
1
/8% 2.125% of such
net income in excess of $25,000.
(b) The tax levied shall be in lieu of ad valorem taxes which might
otherwise be imposed by the state or political subdivisions thereof upon
shares of capital stock or the intangible assets of national banking
associations and state banks.
Sec. 11. K.S.A. 79-1108 is hereby amended to read as follows: 79-
1108. (a) Every trust company and savings and loan association located or
doing business within the state shall pay to the state for the privilege of
doing business within the state a tax according to or measured by its net
income for the next preceding taxable year to be computed as provided in
this act. Such tax shall consist of a normal tax and a surtax and shall be
computed as follows:
(a)(1) (A) For tax year 2024, the normal tax on every trust company
and savings and loan association shall be an amount equal to 2
1
/4% 2.25%
of such net income; and
(B) for tax year 2025, and all tax years thereafter, the normal tax on
every trust company and savings and loan association shall be an amount
equal to 1.61% of such net income; and
(b)(2) the surtax on every trust company and savings and loan
association shall be an amount equal to 2
1
/4% 2.25% of such net income in
excess of $25,000.
(b) The tax levied shall be in lieu of ad valorem taxes which might
otherwise be imposed by the state or political subdivision thereof upon
shares of capital stock or other intangible assets of trust companies and
savings and loan associations.
Sec. 12. K.S.A. 79-1479 is hereby amended to read as follows: 79-
1479. (a) On or before January 15, 1992, and quarterly thereafter, the
county or district appraiser shall submit to the director of property
valuation a progress report indicating actions taken during the preceding
quarter calendar year to implement the appraisal of property in the county
or district. Whenever the director of property valuation shall determine
that any county has failed, neglected or refused to properly provide for the
appraisal of property or the updating of the appraisals on an annual basis in
substantial compliance with the provisions of law and the guidelines and
timetables prescribed by the director, the director shall file with the state
board of tax appeals a complaint stating the facts upon which the director
has made the determination of noncompliance as provided by K.S.A. 79-
1413a, and amendments thereto. If, as a result of such proceeding, the state
board of tax appeals finds that the county is not in substantial compliance
with the provisions of law and the guidelines and timetables of the director
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of property valuation providing for the appraisal of all property in the
county or the updating of the appraisals on an annual basis, it shall order
the immediate assumption of the duties of the office of county appraiser by
the director of the division of property valuation until such time as the
director of property valuation determines that the county is in substantial
compliance with the provisions of law. In addition, the board shall order
the state treasurer to withhold all or a portion of the county's entitlement to
moneys from either or both of the local ad valorem tax reduction fund and
the city and county revenue sharing fund for the year following the year in
which the order is issued. Upon service of any such order on the board of
county commissioners, the appraiser shall immediately deliver to the
director of property valuation, or the director's designee, all books, records
and papers pertaining to the appraiser's office.
Any county for which the director of the division of property valuation
is ordered by the state board of tax appeals to assume the responsibility
and duties of the office of county appraiser shall reimburse the state for the
actual costs incurred by the director of the division of property valuation in
the assumption and carrying out of such responsibility and duties,
including any contracting costs in the event it is necessary for the director
of property valuation to contract with private appraisal firms to carry out
such responsibilities and duties.
(b) On or before June 1 of each year, the director of property
valuation shall review the appraisal of property in each county or district
to determine if property within the county or district is being appraised or
valued in accordance with the requirements of law. If the director
determines the property in any county or district is not being appraised in
accordance with the requirements of law, the director of property valuation
shall notify the county or district appraiser and the board of county
commissioners of any county or counties affected that the county has 30
days within which to submit to the director a plan for bringing the
appraisal of property within the county into compliance.
If a plan is submitted and approved by the director the county or district
shall proceed to implement the plan as submitted. The director shall
continue to monitor the program to insure that the plan is implemented as
submitted. If no plan is submitted or if the director does not approve the
plan, the director shall petition the state board of tax appeals for a review
of the plan or, if no plan is submitted, for authority for the division of
property valuation to assume control of the appraisal program of the
county and to proceed to bring the same into compliance with the
requirements of law.
If the state board of tax appeals approves the plan, the county or district
appraiser shall proceed to implement the plan as submitted. If no plan has
been submitted or the plan submitted is not approved, the board shall fix a
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time within which the county may submit a plan or an amended plan for
approval. If no plan is submitted and approved within the time prescribed
by the board, the board shall order the division of property valuation to
assume control of the appraisal program of the county and shall certify its
order to the state treasurer who shall withhold distributions of the county's
share of moneys from the county and city revenue sharing fund and the
local ad valorem tax reduction fund and credit the same to the general fund
of the state for the year following the year in which the board's order is
made. The director of property valuation shall certify the amount of the
cost incurred by the division in bringing the program in compliance to the
state board of tax appeals. The board shall order the county commissioners
to reimburse the state for such costs.
(c) The state board of tax appeals shall within 60 days after the
publication of the Kansas assessment/sales ratio study review such
publication to determine county compliance with K.S.A. 79-1439, and
amendments thereto. If in the determination of the board one or more
counties are not in substantial compliance and the director of property
valuation has not acted under subsection (b), the board shall order the
director of property valuation to take such corrective action as is necessary
or to show cause for noncompliance.
Sec. 13. K.S.A. 2023 Supp. 79-2988 is hereby amended to read as
follows: 79-2988. (a) On or before June 15 each year, the county clerk
shall calculate the revenue neutral rate for each taxing subdivision and
include such revenue neutral rate on the notice of the estimated assessed
valuation provided to each taxing subdivision for budget purposes. The
director of accounts and reports shall modify the prescribed budget
information form to show the revenue neutral rate.
(b) No tax rate in excess of the revenue neutral rate shall be levied by
the governing body of any taxing subdivision unless a resolution or
ordinance has been approved by the governing body according to the
following procedure:
(1) At least 10 days in advance of the public hearing, the governing
body shall publish notice of its proposed intent to exceed the revenue
neutral rate by publishing notice:
(A) On the website of the governing body, if the governing body
maintains a website; and
(B) in a weekly or daily newspaper of the county having a general
circulation therein. The notice shall include, but not be limited to, its
proposed tax rate, its revenue neutral rate and the date, time and location
of the public hearing.
(2) On or before July 20, the governing body shall notify the county
clerk of its proposed intent to exceed the revenue neutral rate and provide
the date, time and location of the public hearing and its proposed tax rate.
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For all tax years commencing after December 31, 2021, the county clerk
shall notify each taxpayer with property in the taxing subdivision, by mail
directed to the taxpayer's last known address, of the proposed intent to
exceed the revenue neutral rate at least 10 days in advance of the public
hearing. Alternatively, the county clerk may transmit the notice to the
taxpayer by electronic means at least 10 days in advance of the public
hearing, if such taxpayer and county clerk have consented in writing to
service by electronic means. The county clerk shall consolidate the
required information for all taxing subdivisions relevant to the taxpayer's
property on one notice. The notice shall be in a format prescribed by the
director of accounts and reports. The notice shall include, but not be
limited to:
(A) The revenue neutral rate of each taxing subdivision relevant to
the taxpayer's property;
(B) the proposed property tax revenue needed to fund the proposed
budget of the taxing subdivision, if the taxing subdivision notified the
county clerk of its proposed intent to exceed its revenue neutral rate;
(C) the proposed tax rate based upon the proposed budget and the
current year's total assessed valuation of the taxing subdivision, if the
taxing subdivision notified the county clerk of its proposed intent to
exceed its revenue neutral rate;
(D) the percentage by which the proposed tax rate exceeds the
revenue neutral rate;
(E) the tax rate and property tax of each taxing subdivision on the
taxpayer's property from the previous year's tax statement;
(F) the appraised value and assessed value of the taxpayer's property
for the current year;
(G) the estimates of the tax for the current tax year on the taxpayer's
property based on the revenue neutral rate of each taxing subdivision and
any proposed tax rates that exceed the revenue neutral rates;
(H) the difference between the estimates of tax based on the proposed
tax rate and the revenue neutral rate on the taxpayer's property described in
subparagraph (G) for any taxing subdivision that has a proposed tax rate
that exceeds its revenue neutral rate; and
(I) the date, time and location of the public hearing of the taxing
subdivision, if the taxing subdivision notified the county clerk of its
proposed intent to exceed its revenue neutral rate.
Although the state of Kansas is not a taxing subdivision for purposes of
this section, the notice shall include a statement of the statutory mill levies
imposed by the state and the estimate of the tax for the current year on the
taxpayer's property based on such levies.
(3) The public hearing to consider exceeding the revenue neutral rate
shall be held not sooner than August 20 and not later than September 20.
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The governing body shall provide interested taxpayers desiring to be heard
an opportunity to present oral testimony within reasonable time limits and
without unreasonable restriction on the number of individuals allowed to
make public comment. The public hearing may be conducted in
conjunction with the proposed budget hearing pursuant to K.S.A. 79-2929,
and amendments thereto, if the governing body otherwise complies with
all requirements of this section. Nothing in this section shall be construed
to prohibit additional public hearings that provide additional opportunities
to present testimony or public comment prior to the public hearing
required by this section.
(4) A majority vote of the governing body, by the adoption of a
resolution or ordinance to approve exceeding the revenue neutral rate,
shall be required prior to adoption of a proposed budget that will result in a
tax rate in excess of the revenue neutral rate. Such vote of the governing
body shall be conducted at the public hearing after the governing body has
heard from interested taxpayers and shall be a roll call vote. If the
governing body approves exceeding the revenue neutral rate, the
governing body shall not adopt a budget that results in a tax rate in excess
of its proposed tax rate as stated in the notice provided pursuant to this
section. A copy of the resolution or ordinance to approve exceeding the
revenue neutral rate and a certified copy of any roll call vote reporting, at a
minimum, the name and vote of each member of the governing body
related to exceeding the revenue neutral rate, whether approved or not,
shall be included with the adopted budget, budget certificate and other
budget forms filed with the county clerk and the director of accounts and
reports and shall be published on the website of the department of
administration.
(c) (1) Any governing body subject to the provisions of this section
that does not comply with subsection (b) shall refund to taxpayers any
property taxes over-collected based on the amount of the levy that was in
excess of the revenue neutral rate.
(2) Any taxpayer of the taxing subdivision that is the subject of the
complaint or such taxpayer's duly authorized representative may file a
complaint with the state board of tax appeals by filing a written complaint,
on a form prescribed by the board, that contains the facts that the
complaining party believes show that a governing body of a taxing
subdivision did not comply with the provisions of subsection (b) and that a
reduction or refund of taxes is appropriate. The complaining party shall
provide a copy of such complaint to the governing body of the taxing
subdivision making the levy that is the subject of the complaint.
Notwithstanding K.S.A. 74-2438a, and amendments thereto, no filing fee
shall be charged by the executive director of the state board of tax appeals
for a complaint filed pursuant to this paragraph. The governing body of the
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taxing subdivision making the levy that is the subject of the complaint
shall be a party to the proceeding. Notice of any summary proceeding or
hearing shall be served upon such governing body, the county clerk, the
director of accounts and reports and the complaining party. It shall be the
duty of the governing body to initiate the production of evidence to
demonstrate, by a preponderance of the evidence, the validity of such levy.
If upon a summary proceeding or hearing, it shall be made to appear to the
satisfaction of the board that the governing body of the taxing subdivision
did not comply with subsection (b), the state board of tax appeals shall
order such governing body to refund to taxpayers the amount of property
taxes over collected or reduce the taxes levied, if uncollected. The
provisions of this paragraph shall not be construed as prohibiting any other
remedies available under the law.
(d) On and after January 1, 2022, in the event that the 20 mills tax
levied by a school district pursuant to K.S.A. 72-5142, and amendments
thereto, increases the property tax revenue generated for the purpose of
calculating the revenue neutral rate from the previous tax year and such
amount of increase in revenue generated from the 20 mills such tax levied
is the only reason that the school district would exceed the total property
tax revenue from the prior year, the school district shall be deemed to not
have exceeded the revenue neutral rate in levying a tax rate in excess of
the revenue neutral rate to take into account the increase in revenue from
only the 20 mills such tax levied.
(e) (1) Notwithstanding any other provision of law to the contrary, if
the governing body of a taxing subdivision must conduct a public hearing
to approve exceeding the revenue neutral rate under this section, the
governing body of the taxing subdivision shall certify, on or before
October 1, to the proper county clerk the amount of ad valorem tax to be
levied.
(2) If a governing body of a taxing subdivision did not comply with
the provisions of subsection (b) and certifies to the county clerk an amount
of ad valorem tax to be levied that would result in a tax rate in excess of its
revenue neutral rate, the county clerk shall reduce the ad valorem tax to be
levied to the amount resulting from such taxing subdivision's revenue
neutral rate.
(f) As used in this section:
(1) "Taxing subdivision" means any political subdivision of the state
that levies an ad valorem tax on property.
(2) "Revenue neutral rate" means the tax rate for the current tax year
that would generate the same property tax revenue as levied the previous
tax year using the current tax year's total assessed valuation. To calculate
the revenue neutral rate, the county clerk shall divide the property tax
revenue for such taxing subdivision levied for the previous tax year by the
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total of all taxable assessed valuation in such taxing subdivision for the
current tax year, and then multiply the quotient by 1,000 to express the rate
in mills. The revenue neutral rate shall be expressed to the third decimal
place.
(g) In the event that a county clerk incurred costs of printing and
postage that were not reimbursed pursuant to K.S.A. 2023 Supp. 79-2989,
and amendments thereto, such county clerk may seek reimbursement from
all taxing subdivisions required to send the notice. Such costs shall be
shared proportionately by all taxing subdivisions that were included on the
same notice based on the total property tax levied by each taxing
subdivision. Payment of such costs shall be due to the county clerk by
December 31.
(h) The department of administration or the director of accounts and
reports shall make copies of adopted budgets, budget certificates, other
budget documents and revenue neutral rate documents available to the
public on the department of administration's website on a permanently
accessible web page that may be accessed via a conspicuous link to that
web page placed on the front page of the department's website. The
department of administration or the director of accounts and reports shall
also make the following information for each tax year available on such
website:
(1) A list of taxing subdivisions by county;
(2) whether each taxing subdivision conducted a hearing to consider
exceeding its revenue neutral rate;
(3) the revenue neutral rate of each taxing subdivision;
(4) the tax rate resulting from the adopted budget of each taxing
subdivision; and
(5) the percent change between the revenue neutral rate and the tax
rate for each taxing subdivision.
Sec. 14. K.S.A. 2023 Supp. 79-32,110 is hereby amended to read as
follows: 79-32,110. (a) Resident individuals. Except as otherwise provided
by K.S.A. 79-3220(a), and amendments thereto, a tax is hereby imposed
upon the Kansas taxable income of every resident individual, which tax
shall be computed in accordance with the following tax schedules:
(1) Married individuals filing joint returns.
(A) For tax year 2012:
If the taxable income is: The tax is:
Not over $30,000 3.5% of Kansas taxable income
Over $30,000 but not over $60,000 $1,050 plus 6.25% of excess
over $30,000
Over $60,000 $2,925 plus 6.45% of excess
over $60,000
(B) For tax year 2013:
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If the taxable income is: The tax is:
Not over $30,000 3.0% of Kansas taxable income
Over $30,000 $900 plus 4.9% of excess over
$30,000
(C) For tax year 2014:
If the taxable income is: The tax is:
Not over $30,000 2.7% of Kansas taxable income
Over $30,000 $810 plus 4.8% of excess over
$30,000
(D) For tax years 2015 and 2016:
If the taxable income is: The tax is:
Not over $30,000 2.7% of Kansas taxable income
Over $30,000 $810 plus 4.6% of excess over
$30,000
(E) For tax year 2017:
If the taxable income is: The tax is:
Not over $30,000 2.9% of Kansas taxable income
Over $30,000 but not over $60,000 $870 plus 4.9% of excess over
$30,000
Over $60,000 $2,340 plus 5.2% of excess over
$60,000
(F) For tax year years 2018, and all tax years thereafter through 2023:
If the taxable income is: The tax is:
Not over $30,000 3.1% of Kansas taxable income
Over $30,000 but not over $60,000$930 plus 5.25% of excess
over $30,000
Over $60,000 $2,505 plus 5.7% of excess
over $60,000
(B) For tax year 2024, and all tax years thereafter:
If the taxable income is: The tax is:
Not over $14,000 0% of Kansas taxable income
Over $14,000 but not over $60,0005.2% of excess over $14,000
Over $60,000 $2,392 plus 5.65% of excess
over $60,000
(2) All other individuals.
(A) For tax year 2012:
If the taxable income is: The tax is:
Not over $15,000 3.5% of Kansas taxable income
Over $15,000 but not over $30,000 $525 plus 6.25% of excess
over $15,000
Over $30,000 $1,462.50 plus 6.45% of excess
over $30,000
(B) For tax year 2013:
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If the taxable income is: The tax is:
Not over $15,000 3.0% of Kansas taxable income
Over $15,000 $450 plus 4.9% of excess over
$15,000
(C) For tax year 2014:
If the taxable income is: The tax is:
Not over $15,000 2.7% of Kansas taxable income
Over $15,000 $405 plus 4.8% of excess over
$15,000
(D) For tax years 2015 and 2016:
If the taxable income is: The tax is:
Not over $15,000 2.7% of Kansas taxable income
Over $15,000 $405 plus 4.6% of excess over
$15,000
(E) For tax year 2017:
If the taxable income is: The tax is:
Not over $15,000 2.9% of Kansas taxable income
Over $15,000 but not over $30,000 $435 plus 4.9% of excess over
$15,000
Over $30,000 $1,170 plus 5.2% of excess over
$30,000
(F) For tax year years 2018, and all tax years thereafter through 2023:
If the taxable income is: The tax is:
Not over $15,000 3.1% of Kansas taxable income
Over $15,000 but not over $30,000$465 plus 5.25% of excess
over $15,000
Over $30,000 $1,252.50 plus 5.7% of excess
over $30,000
(B) For tax year 2024, and all tax years thereafter:
If the taxable income is: The tax is:
Not over $7,000 0% of Kansas taxable income
Over $7,000 but not over $30,0005.2% of excess over $7,000
Over $30,000 $1,196 plus 5.65% of excess
over $30,000
(b) Nonresident individuals. A tax is hereby imposed upon the Kansas
taxable income of every nonresident individual, which tax shall be an
amount equal to the tax computed under subsection (a) as if the
nonresident were a resident multiplied by the ratio of modified Kansas
source income to Kansas adjusted gross income.
(c) Corporations. A tax is hereby imposed upon the Kansas taxable
income of every corporation doing business within this state or deriving
income from sources within this state. Such tax shall consist of a normal
tax and a surtax and shall be computed as follows unless otherwise
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modified pursuant to K.S.A. 2023 Supp. 74-50,321, and amendments
thereto:
(1) The normal tax shall be in an amount equal to 4% of the Kansas
taxable income of such corporation; and
(2) the surtax shall be in an amount equal to 3% of the Kansas taxable
income of such corporation in excess of $50,000.
(d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable
income of estates and trusts at the rates provided in subsection (a)(2)
hereof.
(e) Notwithstanding the provisions of subsections (a) and (b): (1) For
tax years 2016 and 2017, married individuals filing joint returns with
taxable income of $12,500 or less, and all other individuals with taxable
income of $5,000 or less, shall have a tax liability of zero; and (2), for tax
year years 2018, and all tax years thereafter through 2023, married
individuals filing joint returns with taxable income of $5,000 or less, and
all other individuals with taxable income of $2,500 or less, shall have a tax
liability of zero.
(f) No taxpayer shall be assessed penalties and interest arising from
the underpayment of taxes due to changes to the rates in subsection (a) that
became law on July 1, 2017, so long as such underpayment is rectified on
or before April 17, 2018.
Sec. 15. K.S.A. 2023 Supp. 79-32,117 is hereby amended to read as
follows: 79-32,117. (a) The Kansas adjusted gross income of an individual
means such individual's federal adjusted gross income for the taxable year,
with the modifications specified in this section.
(b) There shall be added to federal adjusted gross income:
(i) Interest income less any related expenses directly incurred in the
purchase of state or political subdivision obligations, to the extent that the
same is not included in federal adjusted gross income, on obligations of
any state or political subdivision thereof, but to the extent that interest
income on obligations of this state or a political subdivision thereof issued
prior to January 1, 1988, is specifically exempt from income tax under the
laws of this state authorizing the issuance of such obligations, it shall be
excluded from computation of Kansas adjusted gross income whether or
not included in federal adjusted gross income. Interest income on
obligations of this state or a political subdivision thereof issued after
December 31, 1987, shall be excluded from computation of Kansas
adjusted gross income whether or not included in federal adjusted gross
income.
(ii) Taxes on or measured by income or fees or payments in lieu of
income taxes imposed by this state or any other taxing jurisdiction to the
extent deductible in determining federal adjusted gross income and not
credited against federal income tax. This paragraph shall not apply to taxes
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imposed under the provisions of K.S.A. 79-1107 or 79-1108, and
amendments thereto, for privilege tax year 1995, and all such years
thereafter.
(iii) The federal net operating loss deduction, except that the federal
net operating loss deduction shall not be added to an individual's federal
adjusted gross income for tax years beginning after December 31, 2016.
(iv) Federal income tax refunds received by the taxpayer if the
deduction of the taxes being refunded resulted in a tax benefit for Kansas
income tax purposes during a prior taxable year. Such refunds shall be
included in income in the year actually received regardless of the method
of accounting used by the taxpayer. For purposes hereof, a tax benefit shall
be deemed to have resulted if the amount of the tax had been deducted in
determining income subject to a Kansas income tax for a prior year
regardless of the rate of taxation applied in such prior year to the Kansas
taxable income, but only that portion of the refund shall be included as
bears the same proportion to the total refund received as the federal taxes
deducted in the year to which such refund is attributable bears to the total
federal income taxes paid for such year. For purposes of the foregoing
sentence, federal taxes shall be considered to have been deducted only to
the extent such deduction does not reduce Kansas taxable income below
zero.
(v) The amount of any depreciation deduction or business expense
deduction claimed on the taxpayer's federal income tax return for any
capital expenditure in making any building or facility accessible to the
handicapped, for which expenditure the taxpayer claimed the credit
allowed by K.S.A. 79-32,177, and amendments thereto.
(vi) Any amount of designated employee contributions picked up by
an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965,
and amendments thereto.
(vii) The amount of any charitable contribution made to the extent the
same is claimed as the basis for the credit allowed pursuant to K.S.A. 79-
32,196, and amendments thereto.
(viii) The amount of any costs incurred for improvements to a swine
facility, claimed for deduction in determining federal adjusted gross
income, to the extent the same is claimed as the basis for any credit
allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
(ix) The amount of any ad valorem taxes and assessments paid and
the amount of any costs incurred for habitat management or construction
and maintenance of improvements on real property, claimed for deduction
in determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,203,
and amendments thereto.
(x) Amounts received as nonqualified withdrawals, as defined by
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K.S.A. 75-643, and amendments thereto, if, at the time of contribution to a
family postsecondary education savings account, such amounts were
subtracted from the federal adjusted gross income pursuant to subsection
(c)(xv) or if such amounts are not already included in the federal adjusted
gross income.
(xi) The amount of any contribution made to the same extent the
same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-
50,154, and amendments thereto.
(xii) For taxable years commencing after December 31, 2004,
amounts received as withdrawals not in accordance with the provisions of
K.S.A. 74-50,204, and amendments thereto, if, at the time of contribution
to an individual development account, such amounts were subtracted from
the federal adjusted gross income pursuant to subsection (c)(xiii), or if
such amounts are not already included in the federal adjusted gross
income.
(xiii) The amount of any expenditures claimed for deduction in
determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,217
through 79-32,220 or 79-32,222, and amendments thereto.
(xiv) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
thereto.
(xv) The amount of any expenditures claimed for deduction in
determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,223
through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79-
32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79-
32,251 through 79-32,254, and amendments thereto.
(xvi) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
(xvii) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
thereto.
(xviii) For taxable years commencing after December 31, 2006, the
amount of any ad valorem or property taxes and assessments paid to a state
other than Kansas or local government located in a state other than Kansas
by a taxpayer who resides in a state other than Kansas, when the law of
such state does not allow a resident of Kansas who earns income in such
other state to claim a deduction for ad valorem or property taxes or
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assessments paid to a political subdivision of the state of Kansas in
determining taxable income for income tax purposes in such other state, to
the extent that such taxes and assessments are claimed as an itemized
deduction for federal income tax purposes.
(xix) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any: (1) Loss from business
as determined under the federal internal revenue code and reported from
schedule C and on line 12 of the taxpayer's form 1040 federal individual
income tax return; (2) loss from rental real estate, royalties, partnerships, S
corporations, except those with wholly owned subsidiaries subject to the
Kansas privilege tax, estates, trusts, residual interest in real estate
mortgage investment conduits and net farm rental as determined under the
federal internal revenue code and reported from schedule E and on line 17
of the taxpayer's form 1040 federal individual income tax return; and (3)
farm loss as determined under the federal internal revenue code and
reported from schedule F and on line 18 of the taxpayer's form 1040
federal income tax return; all to the extent deducted or subtracted in
determining the taxpayer's federal adjusted gross income. For purposes of
this subsection, references to the federal form 1040 and federal schedule
C, schedule E, and schedule F, shall be to such form and schedules as they
existed for tax year 2011, and as revised thereafter by the internal revenue
service.
(xx) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for self-
employment taxes under section 164(f) of the federal internal revenue
code as in effect on January 1, 2012, and amendments thereto, in
determining the federal adjusted gross income of an individual taxpayer, to
the extent the deduction is attributable to income reported on schedule C,
E or F and on line 12, 17 or 18 of the taxpayer's form 1040 federal income
tax return.
(xxi) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for pension,
profit sharing, and annuity plans of self-employed individuals under
section 62(a)(6) of the federal internal revenue code as in effect on January
1, 2012, and amendments thereto, in determining the federal adjusted gross
income of an individual taxpayer.
(xxii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for health
insurance under section 162(l) of the federal internal revenue code as in
effect on January 1, 2012, and amendments thereto, in determining the
federal adjusted gross income of an individual taxpayer.
(xxiii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for domestic
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production activities under section 199 of the federal internal revenue code
as in effect on January 1, 2012, and amendments thereto, in determining
the federal adjusted gross income of an individual taxpayer.
(xxiv) For taxable years commencing after December 31, 2013, that
portion of the amount of any expenditure deduction claimed in
determining federal adjusted gross income for expenses paid for medical
care of the taxpayer or the taxpayer's spouse or dependents when such
expenses were paid or incurred for an abortion, or for a health benefit plan,
as defined in K.S.A. 65-6731, and amendments thereto, for the purchase of
an optional rider for coverage of abortion in accordance with K.S.A. 40-
2,190, and amendments thereto, to the extent that such taxes and
assessments are claimed as an itemized deduction for federal income tax
purposes.
(xxv) For taxable years commencing after December 31, 2013, that
portion of the amount of any expenditure deduction claimed in
determining federal adjusted gross income for expenses paid by a taxpayer
for health care when such expenses were paid or incurred for abortion
coverage, a health benefit plan, as defined in K.S.A. 65-6731, and
amendments thereto, when such expenses were paid or incurred for
abortion coverage or amounts contributed to health savings accounts for
such taxpayer's employees for the purchase of an optional rider for
coverage of abortion in accordance with K.S.A. 40-2,190, and
amendments thereto, to the extent that such taxes and assessments are
claimed as a deduction for federal income tax purposes.
(xxvi) For all taxable years beginning after December 31, 2016, the
amount of any charitable contribution made to the extent the same is
claimed as the basis for the credit allowed pursuant to K.S.A. 72-4357, and
amendments thereto, and is also claimed as an itemized deduction for
federal income tax purposes.
(xxvii) For all taxable years commencing after December 31, 2020,
the amount deducted by reason of a carryforward of disallowed business
interest pursuant to section 163(j) of the federal internal revenue code of
1986, as in effect on January 1, 2018.
(xxviii) For all taxable years beginning after December 31, 2021, the
amount of any contributions to, or earnings from, a first-time home buyer
savings account if distributions from the account were not used to pay for
expenses or transactions authorized pursuant to K.S.A. 2023 Supp. 58-
4904, and amendments thereto, or were not held for the minimum length
of time required pursuant to K.S.A. 2023 Supp. 58-4904, and amendments
thereto. Contributions to, or earnings from, such account shall also include
any amount resulting from the account holder not designating a surviving
payable on death beneficiary pursuant to K.S.A. 2023 Supp. 58-4904(e),
and amendments thereto.
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(c) There shall be subtracted from federal adjusted gross income:
(i) Interest or dividend income on obligations or securities of any
authority, commission or instrumentality of the United States and its
possessions less any related expenses directly incurred in the purchase of
such obligations or securities, to the extent included in federal adjusted
gross income but exempt from state income taxes under the laws of the
United States.
(ii) Any amounts received which are included in federal adjusted
gross income but which are specifically exempt from Kansas income
taxation under the laws of the state of Kansas.
(iii) The portion of any gain or loss from the sale or other disposition
of property having a higher adjusted basis for Kansas income tax purposes
than for federal income tax purposes on the date such property was sold or
disposed of in a transaction in which gain or loss was recognized for
purposes of federal income tax that does not exceed such difference in
basis, but if a gain is considered a long-term capital gain for federal
income tax purposes, the modification shall be limited to that portion of
such gain which is included in federal adjusted gross income.
(iv) The amount necessary to prevent the taxation under this act of
any annuity or other amount of income or gain which was properly
included in income or gain and was taxed under the laws of this state for a
taxable year prior to the effective date of this act, as amended, to the
taxpayer, or to a decedent by reason of whose death the taxpayer acquired
the right to receive the income or gain, or to a trust or estate from which
the taxpayer received the income or gain.
(v) The amount of any refund or credit for overpayment of taxes on
or measured by income or fees or payments in lieu of income taxes
imposed by this state, or any taxing jurisdiction, to the extent included in
gross income for federal income tax purposes.
(vi) Accumulation distributions received by a taxpayer as a
beneficiary of a trust to the extent that the same are included in federal
adjusted gross income.
(vii) Amounts received as annuities under the federal civil service
retirement system from the civil service retirement and disability fund and
other amounts received as retirement benefits in whatever form which
were earned for being employed by the federal government or for service
in the armed forces of the United States.
(viii) Amounts received by retired railroad employees as a
supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
228c(a)(1) et seq.
(ix) Amounts received by retired employees of a city and by retired
employees of any board of such city as retirement allowances pursuant to
K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
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ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
amendments thereto.
(x) For taxable years beginning after December 31, 1976, the amount
of the federal tentative jobs tax credit disallowance under the provisions of
26 U.S.C. § 280C. For taxable years ending after December 31, 1978, the
amount of the targeted jobs tax credit and work incentive credit
disallowances under 26 U.S.C. § 280C.
(xi) For taxable years beginning after December 31, 1986, dividend
income on stock issued by Kansas venture capital, inc.
(xii) For taxable years beginning after December 31, 1989, amounts
received by retired employees of a board of public utilities as pension and
retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249,
and amendments thereto.
(xiii) For taxable years beginning after December 31, 2004, amounts
contributed to and the amount of income earned on contributions deposited
to an individual development account under K.S.A. 74-50,201 et seq., and
amendments thereto.
(xiv) For all taxable years commencing after December 31, 1996, that
portion of any income of a bank organized under the laws of this state or
any other state, a national banking association organized under the laws of
the United States, an association organized under the savings and loan
code of this state or any other state, or a federal savings association
organized under the laws of the United States, for which an election as an
S corporation under subchapter S of the federal internal revenue code is in
effect, which accrues to the taxpayer who is a stockholder of such
corporation and which is not distributed to the stockholders as dividends of
the corporation. For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of modification under this
subsection shall exclude the portion of income or loss reported on schedule
E and included on line 17 of the taxpayer's form 1040 federal individual
income tax return.
(xv) For all taxable years beginning after December 31, 2017, the
cumulative amounts not exceeding $3,000, or $6,000 for a married couple
filing a joint return, for each designated beneficiary that are contributed to:
(1) A family postsecondary education savings account established under
the Kansas postsecondary education savings program or a qualified tuition
program established and maintained by another state or agency or
instrumentality thereof pursuant to section 529 of the internal revenue
code of 1986, as amended, for the purpose of paying the qualified higher
education expenses of a designated beneficiary; or (2) an achieving a
better life experience (ABLE) account established under the Kansas ABLE
savings program or a qualified ABLE program established and maintained
by another state or agency or instrumentality thereof pursuant to section
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529A of the internal revenue code of 1986, as amended, for the purpose of
saving private funds to support an individual with a disability. The terms
and phrases used in this paragraph shall have the meaning respectively
ascribed thereto by the provisions of K.S.A. 75-643 and 75-652, and
amendments thereto, and the provisions of such sections are hereby
incorporated by reference for all purposes thereof.
(xvi) For all taxable years beginning after December 31, 2004,
amounts received by taxpayers who are or were members of the armed
forces of the United States, including service in the Kansas army and air
national guard, as a recruitment, sign up or retention bonus received by
such taxpayer as an incentive to join, enlist or remain in the armed services
of the United States, including service in the Kansas army and air national
guard, and amounts received for repayment of educational or student loans
incurred by or obligated to such taxpayer and received by such taxpayer as
a result of such taxpayer's service in the armed forces of the United States,
including service in the Kansas army and air national guard.
(xvii) For all taxable years beginning after December 31, 2004,
amounts received by taxpayers who are eligible members of the Kansas
army and air national guard as a reimbursement pursuant to K.S.A. 48-
281, and amendments thereto, and amounts received for death benefits
pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
such death benefits are included in federal adjusted gross income of the
taxpayer.
(xviii) For the taxable year beginning after December 31, 2006,
amounts received as benefits under the federal social security act which
are included in federal adjusted gross income of a taxpayer with federal
adjusted gross income of $50,000 or less, whether such taxpayer's filing
status is single, head of household, married filing separate or married filing
jointly; and (A) For all taxable years beginning after December 31, 2007,
and ending before January 1, 2027, amounts received as benefits under the
federal social security act which are included in federal adjusted gross
income of a taxpayer with federal adjusted gross income of $75,000 or
less, whether such taxpayer's filing status is single, head of household,
married filing separate or married filing jointly.
(B) For the taxable year beginning after December 31, 2023, and
ending before January 1, 2025, a portion of amounts received as benefits
under the federal social security act that are included in federal adjusted
gross income of a taxpayer with federal adjusted gross income greater
than $75,000 and less than $125,000, whether that taxpayer's filing status
is single, head of household, married filing separate or married filing
jointly, calculated as follows:
(1) Subtract an amount equal to the federal adjusted gross income of
that taxpayer from 125,000 (the result must be greater than zero);
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(2) divide the result of subparagraph (B)(1) by 50,000; and
(3) multiply the result of subparagraph (B)(2) by the amount in
dollars received as benefits under the federal social security act that are
included in federal adjusted gross income of that taxpayer to determine
the modification pursuant to this subparagraph.
(C) For the taxable year beginning after December 31, 2024, and
ending before January 1, 2026, a portion of amounts received as benefits
under the federal social security act that are included in federal adjusted
gross income of a taxpayer with federal adjusted gross income greater
than $75,000 and less than $175,000, whether that taxpayer's filing status
is single, head of household, married filing separate or married filing
jointly, calculated as follows:
(1) Subtract an amount equal to the federal adjusted gross income of
that taxpayer from 175,000 (the result must be greater than zero);
(2) divide the result of subparagraph (C)(1) by 100,000; and
(3) multiply the result of subparagraph (C)(2) by the amount in
dollars received as benefits under the federal social security act that are
included in federal adjusted gross income of that taxpayer to determine
the modification pursuant to this subparagraph.
(D) For the taxable year beginning after December 31, 2025, and
ending before January 1, 2027, a portion of amounts received as benefits
under the federal social security act that are included in federal adjusted
gross income of a taxpayer with federal adjusted gross income greater
than $75,000 and less than $275,000, whether that taxpayer's filing status
is single, head of household, married filing separate or married filing
jointly, calculated as follows:
(1) Subtract an amount equal to the federal adjusted gross income of
that taxpayer from 275,000 (the result must be greater than zero);
(2) divide the result of subparagraph (D)(1) by 200,000; and
(3) multiply the result of subparagraph (D)(2) by the amount in
dollars received as benefits under the federal social security act that are
included in federal adjusted gross income of that taxpayer to determine
the modification pursuant to this subparagraph.
(E) For all taxable years beginning after December 31, 2026,
amounts received as benefits under the federal social security act that are
included in federal adjusted gross income of a taxpayer.
(xix) Amounts received by retired employees of Washburn university
as retirement and pension benefits under the university's retirement plan.
(xx) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any: (1) Net profit from
business as determined under the federal internal revenue code and
reported from schedule C and on line 12 of the taxpayer's form 1040
federal individual income tax return; (2) net income, not including
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guaranteed payments as defined in section 707(c) of the federal internal
revenue code and as reported to the taxpayer from federal schedule K-1,
(form 1065-B), in box 9, code F or as reported to the taxpayer from federal
schedule K-1, (form 1065) in box 4, from rental real estate, royalties,
partnerships, S corporations, estates, trusts, residual interest in real estate
mortgage investment conduits and net farm rental as determined under the
federal internal revenue code and reported from schedule E and on line 17
of the taxpayer's form 1040 federal individual income tax return; and (3)
net farm profit as determined under the federal internal revenue code and
reported from schedule F and on line 18 of the taxpayer's form 1040
federal income tax return; all to the extent included in the taxpayer's
federal adjusted gross income. For purposes of this subsection, references
to the federal form 1040 and federal schedule C, schedule E, and schedule
F, shall be to such form and schedules as they existed for tax year 2011
and as revised thereafter by the internal revenue service.
(xxi) For all taxable years beginning after December 31, 2013,
amounts equal to the unreimbursed travel, lodging and medical
expenditures directly incurred by a taxpayer while living, or a dependent
of the taxpayer while living, for the donation of one or more human organs
of the taxpayer, or a dependent of the taxpayer, to another person for
human organ transplantation. The expenses may be claimed as a
subtraction modification provided for in this section to the extent the
expenses are not already subtracted from the taxpayer's federal adjusted
gross income. In no circumstances shall the subtraction modification
provided for in this section for any individual, or a dependent, exceed
$5,000. As used in this section, "human organ" means all or part of a liver,
pancreas, kidney, intestine, lung or bone marrow. The provisions of this
paragraph shall take effect on the day the secretary of revenue certifies to
the director of the budget that the cost for the department of revenue of
modifications to the automated tax system for the purpose of
implementing this paragraph will not exceed $20,000.
(xxii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of net gain from the sale of: (1)
Cattle and horses, regardless of age, held by the taxpayer for draft,
breeding, dairy or sporting purposes, and held by such taxpayer for 24
months or more from the date of acquisition; and (2) other livestock,
regardless of age, held by the taxpayer for draft, breeding, dairy or
sporting purposes, and held by such taxpayer for 12 months or more from
the date of acquisition. The subtraction from federal adjusted gross income
shall be limited to the amount of the additions recognized under the
provisions of subsection (b)(xix) attributable to the business in which the
livestock sold had been used. As used in this paragraph, the term
"livestock" shall not include poultry.
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(xxiii) For all taxable years beginning after December 31, 2012,
amounts received under either the Overland Park, Kansas police
department retirement plan or the Overland Park, Kansas fire department
retirement plan, both as established by the city of Overland Park, pursuant
to the city's home rule authority.
(xxiv) For taxable years beginning after December 31, 2013, and
ending before January 1, 2017, the net gain from the sale from Christmas
trees grown in Kansas and held by the taxpayer for six years or more.
(xxv) For all taxable years commencing after December 31, 2020,
100% of global intangible low-taxed income under section 951A of the
federal internal revenue code of 1986, before any deductions allowed
under section 250(a)(1)(B) of such code.
(xxvi) For all taxable years commencing after December 31, 2020,
the amount disallowed as a deduction pursuant to section 163(j) of the
federal internal revenue code of 1986, as in effect on January 1, 2018.
(xxvii) For taxable years commencing after December 31, 2020, the
amount disallowed as a deduction pursuant to section 274 of the federal
internal revenue code of 1986 for meal expenditures shall be allowed to
the extent such expense was deductible for determining federal income tax
and was allowed and in effect on December 31, 2017.
(xxviii) For all taxable years beginning after December 31, 2021: (1)
The amount contributed to a first-time home buyer savings account
pursuant to K.S.A. 2023 Supp. 58-4903, and amendments thereto, in an
amount not to exceed $3,000 for an individual or $6,000 for a married
couple filing a joint return; or (2) amounts received as income earned from
assets in a first-time home buyer savings account.
(d) There shall be added to or subtracted from federal adjusted gross
income the taxpayer's share, as beneficiary of an estate or trust, of the
Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and
amendments thereto.
(e) The amount of modifications required to be made under this
section by a partner which relates to items of income, gain, loss, deduction
or credit of a partnership shall be determined under K.S.A. 79-32,131, and
amendments thereto, to the extent that such items affect federal adjusted
gross income of the partner.
Sec. 16. K.S.A. 2023 Supp. 79-32,119 is hereby amended to read as
follows: 79-32,119. (a) The Kansas standard deduction of an individual,
including a husband and wife who are either both residents or who file a
joint return as if both were residents, shall be equal to the sum of the
standard deduction amount allowed pursuant to this section, and the
additional standard deduction amount allowed pursuant to this section for
each such deduction allowable to such individual or to such husband and
wife under the federal internal revenue code.
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(b) For tax year 1998, and all tax years thereafter, the additional
standard deduction amount shall be as follows: Single individual and head
of household filing status, $850; and married filing status, $700.
(c) (1) For tax year 2013 through tax year 2020, the standard
deduction amount of an individual, including husband and wife who are
either both residents or who file a joint return as if both were residents,
shall be as follows: Single individual filing status, $3,000; married filing
status, $7,500; and head of household filing status, $5,500.
(2) For tax year years 2021, and all tax years thereafter through 2023,
the standard deduction amount of an individual, including husband and
wife who are either both residents or who file a joint return as if both were
residents, shall be as follows: Single individual filing status, $3,500;
married filing status, $8,000; and head of household filing status, $6,000.
(2) For tax year 2024, and all tax years thereafter, the standard
deduction amount of an individual, including husband and wife who are
either both residents or who file a joint return as if both were residents,
shall be as follows: Single individual filing status, $3,605; married filing
status, $8,240; and head of household filing status, $6,180.
(3) In the case of tax years 2025 and 2026, the amounts prescribed in
paragraph (2) and any subsequent changes pursuant to this paragraph
shall be increased by an amount equal to such amount multiplied by the
cost-of-living adjustment determined under section 1(f)(3) of the federal
internal revenue code for the calendar year in which the taxable year
commences. Any increase in the standard deduction provided by this
paragraph shall remain in effect unless further increased pursuant to this
paragraph. For tax years 2027 and 2028, and all tax years thereafter,
further increases shall be made only if authorized by legislative
enactment.
(d) For purposes of this section, the federal standard deduction
allowable to a husband and wife filing separate Kansas income tax returns
shall be determined on the basis that separate federal returns were filed,
and the federal standard deduction of a husband and wife filing a joint
Kansas income tax return shall be determined on the basis that a joint
federal income tax return was filed.
Sec. 17. K.S.A. 2023 Supp. 79-32,121 is hereby amended to read as
follows: 79-32,121. (a) For tax year 2024, and all tax years thereafter, an
individual shall be allowed a Kansas exemption of $2,250 $2,320 for each
exemption for which such individual is entitled to a deduction for the
taxable year for federal income tax purposes.
(b) In addition to the exemptions provided in subsection (a), any
individual who has been honorably discharged from active service in any
branch of the armed forces of the United States and who is certified by the
United States department of veterans affairs or its successor to be in
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receipt of disability compensation at the 100% rate, if the disability is
permanent and was sustained through military action or accident or
resulted from disease contracted while in such active service, such
individual shall be allowed an additional Kansas exemption of $2,250 in
the amount prescribed in subsection (a) including any increases provided
for pursuant to subsection (c) for tax year 2023 2024 and all tax years
thereafter.
(c) In the case of tax years 2025 and 2026, the amount prescribed in
subsection (a) and any subsequent changes pursuant to this subsection
shall be increased by an amount equal to such amount multiplied by the
cost-of-living adjustment determined under section 1(f)(3) of the federal
internal revenue code for the calendar year in which the taxable year
commences. Any increase in the personal exemption provided by this
paragraph shall remain in effect unless further increased pursuant to this
paragraph. For tax years 2027 and 2028, and all tax years thereafter,
further increases shall be made only if authorized by legislative
enactment.
Sec. 18. K.S.A. 19-2694, 65-163j, 65-3306, 65-3327, 75-2556, 79-
1107, 79-1108, 79-1479, 79-2960, 79-2961, 79-2962, 79-2965, 79-2966
and 79-2967 and K.S.A. 2023 Supp. 72-5142, 74-8768, 79-201x, 79-2959,
79-2964, 79-2988, 79-32,110, 79-32,117, 79-32,119 and 79-32,121 are
hereby repealed.
Sec. 19. This act shall take effect and be in force from and after its
publication in the statute book.
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