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 C. Proffitt, Director Laura Kelly, Governor
Division of the Budget
February 4, 2025
The Honorable Adam Smith, Chairperson
House Committee on Taxation
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2005 by Representative Proctor, et al.
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2005 is
respectfully submitted to your committee.
HB 2005 would enact the Veterans’ Valor Property Tax Relief Act, that would provide
veterans who have been deemed permanently and totally disabled or unemployable a refundable
income tax credit equal to 75.0 percent of the property and ad valorem taxes actually and timely
paid on the residential property of the taxpayer. The tax credit would be effective beginning in tax
year 2025. Taxpayers receiving this credit would be prohibited from participating in the
Homestead Property Tax Refund Program or the Selective Assistance for Effective Senior Relief
(SAFE Sr) Program. The Department of Revenue would have the authority to write rules and
regulations regarding the filling of documents to support the amount of the tax credit claimed.
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- $209,975 $64,060
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $209,975 $64,060
Revenues
State General Fund -- ($11,400,000) ($12,200,000)
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- ($11,400,000) ($12,200,000)
FTE Positions -- 1.00 1.00 The Honorable Adam Smith, Chairperson
Page 2—HB 2005
The Department of Revenue estimates that HB 2005 would decrease State General Fund
revenues by $11.4 million in FY 2026, $12.2 million in FY 2027, and $13.0 million in FY 2028.
To formulate these estimates, the Department of Revenue reviewed data on disabled veterans from
the U.S. Veterans Administration. Data shows there are approximately 8,681 veterans who are
deemed permanently and totally disabled or unemployable in Kansas. The Department has
estimated that approximately 4,037 of these disabled veterans would qualify for this program,
taking into consideration that 75.0 percent of veterans own their own home and 38.0 percent are
already claiming either the Homestead Property Tax Refund Program or SAFE Sr Program.
The Department of Revenue indicates that it would require a total of $209,975 from the
State General Fund in FY 2026 to implement the bill and to modify the automatic tax system. The
bill would require the Department to hire 1.00 new position to answer questions from taxpayers
and to assist with the administration of this new program. The Department estimates that ongoing
expenses for salaries and wages for the 1.00 position would total $64,060 from the State General
Fund in FY 2027. 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 HB 2005 is not reflected in The FY 2026 Governor’s Budget Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue