Session of 1998
                   
SENATE BILL No. 396
         
By Special Committee on Assessment and Taxation
         
12-17
            9             AN ACT relating to income taxation; concerning certain credits, deduc-
10             tions and exemptions therefrom; amending K.S.A. 79-32,119 and 79-
11             32,121 and repealing the existing sections.
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13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 79-32,119 is hereby amended to read as follows:
15       79-32,119. The Kansas standard deduction of an individual, including a
16       husband and wife who are either both residents or who file a joint return
17       as if both were residents, shall be equal to the sum of the standard de-
18       duction amount allowed pursuant to this section, and the additional stan-
19       dard deduction amount allowed pursuant to this section for each such
20       deduction allowable to such individual or to such husband and wife under
21       the federal internal revenue code as in effect for tax year 1988. For tax
22       year 1998, the standard deduction amount shall be as follows: Single in-
23       dividual filing status, $3,200; married filing status, $5,600; and head of
24       household filing status, $4,800. For tax year 1998, the additional standard
25       deduction amount shall be as follows: Single individual and head of house-
26       hold filing status, $850; and married filing status, $700. In the case of tax
27       year 1999, and all tax years thereafter, the standard deduction and the
28       additional standard deduction amounts allowable shall be increased by
29       the product of the amount allowed for the next preceding tax year mul-
30       tiplied by the cost-of-living adjustment determined under section 1(f)(3)
31       of the federal internal revenue code for the calendar year in which the
32       taxable year commences. For purposes of the foregoing, the federal stan-
33       dard deduction allowable to a husband and wife filing separate Kansas
34       income tax returns shall be determined on the basis that separate federal
35       returns were filed, and the federal standard deduction of a husband and
36       wife filing a joint Kansas income tax return shall be determined on the
37       basis that a joint federal income tax return was filed.
38           Sec. 2. K.S.A. 79-32,121 is hereby amended to read as follows: 79-
39       32,121. (a) An individual shall be allowed a Kansas exemption of $1,950
40       for tax year 1988, and $2,000 for each tax year thereafter $2,050 for tax
41       year 1998, for each exemption for which such individual is entitled to a
42       deduction for the taxable year for federal income tax purposes. In addition
43       to the exemptions authorized in the foregoing provision, an individual

SB 396

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  1       filing a federal income tax return under the status of head of household,
  2       as the same is defined by 26 U.S.C. 2(b), shall be allowed an additional
  3       Kansas exemption of $1,950 for tax year 1988, and $2,000 for each tax
  4       year thereafter $2,050 for tax year 1998. In the case of tax year 1999, and
  5       all tax years thereafter, the exemption amount allowable shall be increased
  6       by the product of the amount allowed for the next preceding tax year
  7       multiplied by the cost-of-living adjustment determined under section
  8       1(f)(3) of the federal internal revenue code for the calendar year in which
  9       the taxable year commences.
10           (b) For tax year 1987, there shall be allowed as a credit against the
11       tax liability of a resident individual imposed under the Kansas income tax
12       act who except for the operation of the provisions of K.S.A. 79-32,121
13       resulting from amendments to the federal internal revenue code would
14       have been allowed an additional exemption for blindness or age or both
15       pursuant to such section in tax year 1987, an amount equal to $60 for
16       each such exemption. The total amount of such credits shall not exceed
17       the amount of tax imposed by K.S.A. 79-32,110, and amendments thereto,
18       reduced by the sum of any other credits allowable pursuant to law.
19           New Sec. 3. (a) There shall be allowed as a credit against the tax
20       liability of a resident individual imposed under the Kansas income tax act
21       an amount equal to 10% for tax year 1998, and 15% for all tax years
22       thereafter, of the amount of the earned income credit allowed against
23       such taxpayer's federal income tax liability pursuant to section 32 of the
24       federal internal revenue code for the taxable year in which such credit
25       was claimed against the taxpayer's federal income tax liability.
26           (b) If the amount of the credit allowed by subsection (a) exceeds the
27       taxpayer's income tax liability imposed under the Kansas income tax act,
28       such excess amount shall be refunded to the taxpayer.
29           (c) The provisions of this section shall be applicable to all taxable
30       years commencing after December 31, 1997.
31           Sec. 4. K.S.A. 79-32,119 and 79-32,121 are hereby repealed.
32           Sec. 5. This act shall take effect and be in force from and after its
33       publication in the statute book.
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