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 22, 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 306 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 306 is respectfully
submitted to your committee.
Calculations for Kansas income taxes are based on Kansas adjusted gross income, which is
calculated by adding or subtracting certain types of income from the federal adjusted gross income.
SB 306 would allow the amount of losses from any investment, including any alternative asset
investment, in a technology-enabled fiduciary financial institution to be added to income for Kansas
income tax purposes. The bill would apply this addition modification retroactively to tax year 2022.
The Department of Revenue estimates that SB 306 has the potential to increase State General
Fund revenue by negligible amounts beginning in FY 2024. The bill would require any loss reported
on any applicable federal income tax return to be added to federal adjusted gross income for Kansas
income tax purposes beginning with tax year 2022.
The Department indicates that the bill would require $27,780 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 306 is not reflected in The FY 2024
Governor’s Budget Report.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue