Kansas 2023-2024 Regular Session

Kansas Senate Bill SB37

Introduced

1/17/23

Refer

1/18/23

Refer

1/18/23

Report Pass

2/14/23

Engrossed

3/1/23

Refer

3/1/23

Report Pass

3/14/24

Enrolled

4/30/24

Vetoed

4/30/24

Caption

House Substitute for SB 37 by Committee on Financial Institutions and Pensions - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, increasing the extent of property tax 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 and providing for certain transfers to the state school district finance fund.

Impact

The modifications laid out in SB37 could significantly affect individuals' financial obligations, particularly by increasing disposable income for those receiving social security benefits, and thereby enhancing their purchasing power. By abolishing local ad valorem tax reduction funds and combining these into the state general fund, there may be implications for local government funding. These structural changes in taxation are projected to influence revenue generation strategies within the state, raising questions about long-term fiscal sustainability as changes to tax codes can shift the basis for local revenue generation.

Summary

SB37 proposes comprehensive modifications to various tax codes in Kansas, including changes to income tax rates for individuals, property tax exemptions, sales tax rates on food, and alterations to state taxation revenues. Notably, the bill aims to exempt all social security benefits from state income taxes and increase the Kansas standard deduction and personal exemptions. Starting July 1, 2024, it introduces a 0% state sales tax on food and food ingredients, aiming to alleviate the tax burden on residents while attempting to stimulate economic activity in the state.

Sentiment

Discussions around SB37 have elicited mixed sentiments among stakeholders. Proponents, particularly fiscal conservatives, argue that the bill will ultimately promote economic growth by allowing individuals to retain more of their income, directly benefiting lower-income groups who rely heavily on social security. Conversely, opponents express concerns over the long-term implications that such tax cuts may have on state funding for essential services, suggesting that essential public programs could suffer if the state's revenue is diminished without adequate replacement mechanisms.

Contention

One significant point of contention is related to the proposed property tax exemption, which raises questions of equity among property owners and income groups. Critics fear that the reduction of local revenue could lead to underfunded public services, particularly in districts that are highly reliant on property taxes. The bill's overall focus on state control over local taxation practices also invites debate over the balance of authority between local governments and state legislative agendas, with many local leaders advocating for their sovereignty to address more localized financial needs.

Latest SB37 Activity

Companion Bills

No companion bills found.

Similar Bills

KS HB2036

Senate Substitute for HB 2036 by Committee on Assessment and Taxation - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, increasing the extent of property tax 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 and providing for certain transfers to the state school district finance fund.

KS SB300

House Substitute for SB 300 by Committee on Taxation - Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, providing for certain transfers to the special city and county highway fund and decreasing the rate of ad valorem tax imposed by a school district.

KS SB169

House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS SB539

Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

KS SB377

Substitute for SB 377 by Committee on Assessment and Taxation - Providing an income tax rate of 5.25% for individuals, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, increasing the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on April 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS HB2284

Providing an income tax rate of 5.25% for individuals, exempting all social security benefits from Kansas income tax, increasing the standard deduction by a cost-of-living adjustment, increasing the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on April 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS SB2

Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS HB2457

Providing an income tax rate of 4.95% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income and providing that all social security income qualifies for the subtraction modification commencing in tax year 2026, increasing the Kansas standard deduction for individuals and further increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax surtax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2023, and increasing the extent of property tax exemption for residential property from the statewide school levy.