Establishing the Kansas legal tender act and providing for an income tax subtraction modification for sales of specie.
Impact
The implications of SB 303 are significant, impacting state laws regarding what can be considered acceptable medium for transactions and taxes. By recognizing gold and silver as legal tender, the bill could encourage their use in commerce, potentially altering the economic landscape in Kansas. The measures contained within the act mean that exchanges using specie will not create tax liabilities, thus providing a more favorable environment for transactions involving precious metals. This could promote a revival in their use as currency, distinct from modern fiat systems.
Summary
Senate Bill 303, known as the Kansas Legal Tender Act, seeks to reaffirm and establish gold and silver coin as legal tender in the state of Kansas. This bill lays out definitions for legal tender and 'specie', which includes coins with gold or silver content and refined gold or silver bullion that holds value primarily based on its metal content. It further clarifies that no specie shall be treated as personal property for taxation or regulatory purposes, asserting a strong stance on the recognition of precious metals as a medium of exchange for debts and taxes in Kansas.
Contention
Opponents of the bill might view it as an attempt to backtrack on established monetary practices that rely on fiat currency, raising questions about practicality and stability. Support for the bill is likely to derive from philosophical perspectives favoring hard currency and concerns over inflation related to fiat money. Additionally, there are discussions about whether such measures could effectively serve to insulate state residents against fluctuations in the broader economy or if they would instead complicate financial transactions and regulatory practices in Kansas.
Increasing the income limit for the income tax subtraction modification for social security income and providing that all social security benefits qualify for the subtraction modification commencing in tax year 2026.
Providing an individual income tax credit for certain residential solar and wind energy property expenditures, a subtraction modification to permit the carryforward of certain net operating losses for individuals and a subtraction modification for the federal work opportunity tax credit and the employee retention credit disallowances.
Increasing the income limit for the income tax subtraction modification for social security income and providing that all social security benefits qualify for the subtraction modification commencing in tax year 2026.
Permitting the carryforward of certain net operating losses for individuals for Kansas income tax purposes and excluding social security payments from household income and increasing the appraised value and household income thresholds for eligibility of seniors and disabled veterans related to increased property tax homestead claims.
Allowing a taxpayer to elect the taxable year in which a subtraction modification for contributions to a 529 program account, ABLE account or first-time home buyer savings account would be applied and authorizing the state treasurer to appoint a 529 program advisory committee.