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 3, 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 2084 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2084 is
respectfully submitted to your committee.
Under current law, taxpayers are required to pay state income taxes on certain gambling
winnings but are not allowed to deduct any losses from gambling. HB 2084 would allow 100.0
percent of gambling losses claimed on federal income tax returns to be claimed as an itemized
deduction on state income tax returns beginning in tax year 2025 and in each future tax year. The
bill would also remove outdated statutory references.
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- $73,545 --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $73,545 --
Revenues
State General Fund -- ($15,800,000) ($15,800,000)
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- ($15,800,000) ($15,800,000)
FTE Positions -- -- -- The Honorable Adam Smith, Chairperson
Page 2—HB 2084
The Department of Revenue estimates that HB 2084 would decrease State General Fund
revenues by $15.8 million in FY 2026 and in each future fiscal year. To formulate this estimate,
the Department reviewed Internal Revenue Service data on gambling losses claimed on federal tax
returns. The Department of Revenue estimates that Kansas taxpayers would claim approximately
$451.4 million in gambling losses in tax year 2025, and using an effective tax rate of 3.5 percent,
the bill would reduce state income tax collections by approximately $15.8 million in tax year 2025
or FY 2026.
The Department of Revenue indicates that it would require a total of $73,545 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 2084 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