Kansas 2023-2024 Regular Session

Kansas Senate Bill SB377

Introduced
1/22/24  
Refer
1/23/24  
Report Pass
2/20/24  
Refer
2/23/24  

Caption

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.

Impact

The bill includes provisions to adjust income tax credits related to household and dependent care expenses, as well as significant changes to the Kansas standard deduction. Notably, it proposes to eliminate the income limit for taxpayers looking to subtract social security income from taxable income, potentially benefiting many retirees and low-income individuals. Furthermore, it plans to lower state sales tax on food and food ingredients to 0% starting April 1, 2024, which aims to ease the financial impact of rising food costs on families.

Summary

Senate Bill 377 seeks to amend various tax codes related to residential property, taxation for banks and trust companies, and income tax regulations in Kansas. A significant feature of this bill is the increase in the exemption for residential property from statewide school levies, aimed at reducing the tax burden on homeowners. Additionally, it proposes to decrease the normal tax rates applicable to banks, trust companies, and savings and loan associations, which could lead to financial incentives for these institutions as part of a broader economic strategy.

Contention

Debates surrounding the bill may center on its fiscal implications and the shifting of tax burdens. Those in favor argue that lowering taxes across different sectors will stimulate economic activity and support vulnerable populations. Critics, however, may voice concerns regarding the potential loss of state revenue, which is critical for funding public services and infrastructure. Moreover, the specifics of transitioning to a reduced tax environment for food and educational supplies through tax holidays must be thoroughly analyzed for their long-term sustainability.

Additional_points

Among the provisions, SB377 introduces an annual sales tax holiday for back-to-school purchases, which is set to provide essential items without the added cost of sales tax. Additionally, the bill proposes specific exemptions for children's diapers and feminine hygiene products, which align with broader societal goals of alleviating financial burdens on families.

Companion Bills

No companion bills found.

Similar Bills

KS HB2586

Increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the normal rate of privilege tax, increasing the household and dependent care expenses income tax credit amount, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction, providing for an annual sales tax holiday for certain sales of school supplies, computers and clothing, providing sales tax exemptions for children's diapers and feminine hygiene products and reducing the state rate of tax on sales of food and food ingredients to 0% on April 1, 2024.

KS HB2465

Enacting the adoption savings account act allowing individuals to establish adoption savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications for contributions to such accounts under the Kansas income tax act, increasing the income tax credit amount for adoption expenses, establishing an income, privilege and premium tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities and providing for a sales tax exemption for purchases by pregnancy resource centers and residential maternity facilities.

KS HB2435

Decreasing the sales and use tax rate, establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund and altering the calculation for STAR bond districts.

KS HB2111

Establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund, altering the calculation for STAR bond districts and discontinuing the food sales income tax credit.

KS SB57

Establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund and altering the calculation for STAR bond districts.

KS SB248

Providing sales tax exemptions for certain food and food ingredients and for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf and repealing the state rate reduction for sales of certain food and food ingredients.

KS SB498

Establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities, increasing the tax credit amount for adoption expenses and making the credit refundable and providing a sales tax exemption for pregnancy resource centers and residential maternity facilities.

KS HB2764

Establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities and establishing a child tax credit, increasing the tax credit amount for adoption expenses and making the credit refundable and providing a sales tax exemption for pregnancy resource centers and residential maternity facilities.