Brief (1)
SB 378, as amended, would amend the food sales tax refund program to require that two kinds of tax-exempt income, public sector pension income and interest on governmental debt, be added to the Kansas Adjusted Gross Income (KAGI) for purposes of determining eligibility.
The bill also would clarify that eligible taxpayers who also file for individual income tax purposes as heads of household are to continue to receive an "extra" refund amount to dovetail with provisions of the income tax law which allow such filers to receive an additional personal exemption.
Background
The food sales tax rebate program was expanded substantially by 1998 legislation and authorizes certain households (those with a member who is age 55 or older; a dependent child under age 18; blind; or otherwise disabled) to qualify for refunds of up to $60 per person, provided KAGI is $25,000 or less.
Requiring the addition to KAGI of public sector pension income and governmental bond interest would tighten the eligibility requirements and reduce the amount of refunds by about $0.6 million, according to a fiscal note from the Department of Revenue.
The language codifying the extra $30 or $60 refund for heads of household does not have a fiscal note, since the Department of Revenue interprets current law as including such a provision.
The bill was introduced by the Special Committee on Assessment and Taxation. That Committee recommended the additions to KAGI after finding that "persons with large amounts of tax exempt income . . . should not have an advantage in terms of their ability to qualify for food sales tax refund credits."
The interim committee also made a finding that "it was the intent of the 1998 Legislature to allow heads of household to receive an extra refund amount."
The Senate Committee amendments are technical.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html