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 11, 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 2058 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2058 is
respectfully submitted to your committee.
Under current law, if a taxpayer is 65 years of age or older with household income equal
to or less than 120.0 percent of the federal poverty level for two persons and the appraised value
of their residence is under $350,000, they are eligible to claim the 75.0 percent Selective Assistance
for Effective Senior Relief (SAFE SR) tax credit. HB 2058 would set the household income
limitation to equal to or less than $28,000 for two persons to qualify for this tax credit beginning
in tax year 2025 and would adjust this amount based on the cost-of-living adjustment published in
the Internal Revenue Code beginning in tax year 2026 and annually thereafter.
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- $20,000 --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $20,000 --
Revenues
State General Fund -- ($1,470,000) ($1,540,000)
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- ($1,470,000 ($1,540,000)
FTE Positions -- -- --
The Honorable Adam Smith, Chairperson
Page 2—HB 2058
The Department of Revenue estimates that HB 2058 would decrease State General Fund
revenues by $1,470,000 in FY 2026, $1,540,000 in FY 2027, and $1,620,000 in FY 2028. To
formulate these estimates, the Department of Revenue reviewed property tax data from the
Property Valuation Division of the Department of Revenue. The household income limitation for
the SAFE SR program for tax year 2024 was $24,500. Under current law, the Department
estimates the household income limitation would increase to $25,100 in tax year 2025, while this
bill would increase the household income limitation by an additional $2,900 to $28,000. The
Department estimates that this would provide for an additional 1,000 claimants for this program.
With an average credit of $1,470, the estimated fiscal effect would be $1,470,000 in tax year 2025
or FY 2026.
The Department of Revenue indicates that it would require a total of $20,000 from the State
General Fund in FY 2026 to implement the bill and to modify the automated tax system. 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 2058 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