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Minutes for HB2618 - Committee on Taxation
Short Title
Creating a new income tax bracket for joint filers with income over $1,000,000 and all other individuals with income over $500,000.
Minutes Content for Mon, Mar 12, 2018
Mr. Wells provided an overview on HB2618 stating the bill would add a new bracket to the Kansas Individual Income Tax beginning in tax year 2018. The new bracket would apply to married individuals filing joint returns with Kansas taxable income over $1 million and all other individual tax payers with Kansas taxable income over $500,000. He stated similar to last year's bills, the rates were adjusted in the middle of the tax year and included language this year of penalties and interest due to underpayment because of the tax changes. The penalties and interest would not be charged as long as they are corrected on or before April 15, 2019. Mr. Wells stood for questions from the Committee.
Kathleen Smith, Department of Revenue provided an overview on the fiscal note for HB2618 stating an estimated impact for FY 2019 is $307.9 million. She noted it will go down for FY2020 to $241.2 million due to going retroactive January 1, 2018. For FY2021 is $245.3 million, FY2022 $249.4 million and for FY2023 $254.7 million. Ms. Smith stood for questions from the Committee.
Representative Tim Hodge testified as a proponent to HB2618 (Attachment 11) and (Attachment 12). Representative Hodge stood for questions from the Committee.
Written testimony was submitted by Heidi Holliday, Kansas Center for Economic Growth as a proponent to HB2618 (Attachment 13).
Dave Trabert, Kansas Policy Institute testified as an opponent to HB2618 (Attachment 14). Mr. Trabert stood for questions from the Committee.
Eric Stafford, Kansas Chamber testified as an opponent to HB2618 (Attachment 15). Mr. Trabert stood for questions from the Committee.
Daniel Murray, National Federation of Independent Business (NFIB) testified as an opponent to HB2618 (Attachment 16). Mr. Murray stood for questions from the Committee.
Hearing closed for HB2618.
