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Minutes for HB2109 - Committee on Taxation
Short Title
Increasing the income limit for the income tax subtraction modification for social security income.
Minutes Content for Thu, Feb 16, 2023
Mr. Siebers provided an overview on HB2109 that amends the threshold to be eligible for the social security income subtraction modification in determining Kansas adjusted gross income. Mr. Siebers stood for questions from Committee members.
Chairperson Smith moved, seconded by Representative Hoheisel, to amend HB2109.(Attachment 4)
Chairperson Smith stated the amendment is to eventually phase out the tax on social security benefits over a period of four years. HB2109 as it stands currently starts at $75,000 and maximizes to $100,000 and the fiscal note was approximately $20 million the first year and then dropped to $15 million. The amendment starts at $75,000 up to $125,000, for tax year 2023 and for FY 2024 the fiscal note was $49.4 million.
Mr. Penner provided the following estimated fiscal impacts from the Kansas Department of Revenue:
- FY 2024 the negative impact would be $49.4 million
- FY 2025 the negative impact would be $63.5 million
- FY 2026 the negative impact would be $93.4 million;
- FY 2027 the negative impact would be $124.4 million.
- Beyond FY 2027 the tax is exempt every year.
Committee discussion ensued.
Chairperson Smith closed on his amendment for HB2109. Motion passed.
Division was called and motion passed 12 Ayes and 8 Nays
Representative Eplee moved, seconded by Representative Hoheisel, the Committee recommend HB2109 be passed as amended. Motion passed.
Chairperson Smith stated the Committee would take possible action on the following bills February 20 and February 21: HB2110 - single factor apportionment, HB2136 - income tax subtraction modification for eminent domain properties, HB2182 - the film and media tax credit incentive bill, and HB2229 - the vehicle sales tax refund.
Chairperson Smith adjourned the meeting at 4:15 p.m.
