SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE BILL NO. 360
As Amended by Senate Committee on
Education
Brief*
SB 360, as amended, would allow taxpayers to elect the
year in which a subtraction modification would occur for
contributions to qualified Achieving a Better Life Experience
(ABLE) accounts, qualified 529 program accounts, and first-
time home buyers savings accounts and would authorize the
State Treasurer to establish a 529 Program Advisory
Committee.
The bill would be in effect upon publication in the
Kansas Register.
Contributions; Election of Tax Year
The bill would allow individuals contributing to an ABLE
account, 529 program account, and first-time home buyers,
between January 1 and the tax filing deadline, to choose the
tax year to take the individual income tax subtraction
modification. The choice would be to either take the
subtraction modification in the current tax year or in the
previous tax year. This is consistent with the time frame
taxpayers can choose to deduct taxes for contributions such
as individual retirement accounts and health savings
accounts.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org 529 Program Advisory Committee
The bill would also authorize the State Treasurer to
appoint a 529 Program Advisory Committee (Advisory
Committee) to make recommendations for the
implementation and operation of the program. The State
Treasurer would select the membership of the Advisory
Committee, and members would serve at the pleasure of the
State Treasurer. The bill would provide that no member of the
Advisory Committee could receive any compensation,
substance, mileage, or other allowance for their service.
[Note: An ABLE account (529A ABLE account) is a tax-
advantaged savings account to which contributions can be
made to meet the qualified disability expenses of the owner
or designated beneficiary. A 529 Education Savings Account
is a tax-advantaged savings account designed to help
designated individuals pay for qualified educational and
career advancement expenses. Kansas first-time home buyer
savings accounts allow Kansas residents to save money to
purchase a first home for themselves or a designated
beneficiary.]
Background
The bill was introduced by the Senate Committee on
Education at the request of Senator Warren.
Senate Committee on Education
In the Senate Committee hearing on January 31, 2024,
Senator Warren, the State Treasurer, and a representative of
Interhab provided proponent testimony, stating generally that
the bill provides flexibility to elect to have contributions count
toward the prior tax year in the same manner as Roth and
Traditional IRAs. The State Treasurer also indicated the bill
would codify the Treasurer’s Advisory Council for the Kansas
Learning Quest 529 program and continue oversight of and
2- 360 discussion on improvements for account owners and
beneficiaries.
Written-only proponent testimony was submitted by
representatives of the Kansas Council on Developmental
Disabilities and Kansas Society of Certified Public
Accountants and.
The Senate Committee adopted a technical amendment
to use the name 529 Program Advisory Committee
consistently in the bill.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue estimates a State General Fund reduction of
$100,000 in revenue due to taxpayers better utilizing tax
advantages of contributions.
Education; taxation; ABLE account; 529 program account; first-time home buyer
savings account; taxable year; subtraction modification
3- 360