Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor
Division of the Budget
March 13, 2023
The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 300 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 300 is
respectfully submitted to your committee.
SB 300 would reduce the privilege normal tax rate for banks, trust companies, and savings
and loan associations as follows:
Privilege Taxpayers
(Current Law)
Tax Year 2023
Tax Year
2024
Tax Year
2025
Banks 2.25 % 1.94 % 1.63 %
Trust Companies 2.25 % 1.93 % 1.61 %
Savings and Loan Associations 2.25 % 1.93 % 1.61 %
Estimated State Fiscal Effect
FY 2023
SGF
FY 2023
All Funds
FY 2024
SGF
FY 2024
All Funds
Revenue -- -- ($5,800,000) ($5,800,000)
Expenditure -- -- $123,354 $123,354
FTE Pos. -- -- -- --
The Department of Revenue estimates that SB 300 would decrease State General Fund
revenues by $5.8 million in FY 2024, $7.2 million in FY 2025, and $7.4 million in FY 2026. To
formulate these estimates, the Department of Revenue reviewed financial institutions privilege tax
data from tax year 2020. The Honorable Caryn Tyson, Chairperson
Page 2—SB 300
The Department indicates that the bill would require $123,354 from the State General Fund
in FY 2024 to implement the bill and to modify the automated tax system. The required
programming for this bill by itself would be performed by existing staff of the Department of
Revenue. In addition, if the combined effect of implementing this bill and other enacted legislation
exceeds the Department’s programming resources, or if the time for implementing the changes is
too short, additional expenditures for outside contract programmer services beyond the
Department’s current budget may be required. Any fiscal effect associated with SB 300 is not
reflected in The FY 2024 Governor’s Budget Report.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue