Kansas 2023-2024 Regular Session

Kansas Senate Bill SB8

Introduced
1/9/23  
Refer
1/10/23  
Report Pass
2/20/23  
Engrossed
3/1/23  
Refer
3/1/23  
Report Pass
3/23/23  
Enrolled
4/28/23  

Caption

Reducing penalties for the late filing of and the failure to file personal property renditions and the discovery of escaped personal property, requiring filing only an initial statement with county appraiser for personal property, decreasing the penalties for failing to timely remit withholding income taxes of employees by employers, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar year 2024, modifying and prescribing the contents of the revenue neutral rate public hearing notice, providing two prior years' values on the annual valuation notice, allowing for filing of an appraisal by a certified residential real property appraiser for appeal purposes, discontinuing the prohibition of paying taxes under protest after a valuation notice appeal, accounting for adverse influences in the valuation of agricultural land, including properties used for registered agritourism activities as land devoted to agricultural use for purposes of classification, providing a property tax exemption for certain business property operated in competition with property owned or operated by a governmental entity, providing income tax subtraction modifications to permit the carryforward of certain net operating losses for individuals and for the federal work opportunity tax credit and the employee retention credit disallowances, increasing the tax credit amount for adoption expenses and making the credit refundable, increasing the amount of income tax credits available for purchases under the disability employment act from qualified vendors, continuing in existence such credits beyond tax year 2023 and defining qualifying vendors and eligible employees, establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities, clarifying the determination of taxable income of an electing pass-through entity and providing for the passing through of tax credits to electing pass-through entity owners for purposes of the salt parity act, excluding social security payments from household income and expanding eligibility for seniors and disabled veterans related to increased property tax homestead refund claims, providing a sales tax exemption for sales of property and services used in the provision of communications services and excluding manufacturers' coupons from the sales or selling price.

Impact

The legislation aims to alleviate the tax burden on both individuals and businesses in Kansas. By reducing penalties for late filings and facilitating tax credits particularly for adoption expenses, the bill is designed to promote social welfare, support families, and incentivize charitable contributions, specifically to pregnancy centers and residential maternity facilities. Additionally, the exemption from property taxes for certain businesses is intended to stimulate local economies and encourage more businesses to flourish in a competitive environment against government-operated facilities.

Summary

Senate Bill No. 8 introduces numerous changes to the taxation laws affecting property and income tax in Kansas. Key provisions include the reduction of penalties for late filing of property tax statements and the discovery of escaped property, as well as an increased emphasis on property tax exemptions for businesses that operate in competition with governmental entities. This is seen as a move to protect private businesses from unfair competition posed by public entities that are not liable for taxes. SB8 also includes measures to encourage the development of childcare facilities and health services by exempting such properties from ad valorem taxes under certain conditions.

Contention

However, SB8 has generated some contention, particularly concerning the exemptions provided to businesses competing with public entities. Critics argue that these exemptions may disproportionately favor certain businesses over others, potentially leading to a loss in government revenue essential for public services. Moreover, there are concerns over the enforcement and qualification criteria for such exemptions, which could create bureaucratic hurdles or unintended consequences for smaller, independent businesses that do not operate at the same scale as larger competitors. The balancing act between offering tax relief and maintaining equitable tax policies remains a debate central to the discussions surrounding this bill.

Companion Bills

No companion bills found.

Similar Bills

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 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 HB2586

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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

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KS SB127

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KS HB2098

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