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Minutes for SB22 - Committee on Taxation
Short Title
Kansas itemized deductions, election, providing for deferred foreign income, global intangible low-taxed income, business interest, capital contributions and FDIC premiums income tax modifications.
Minutes Content for Wed, Feb 20, 2019
Appearing before the Committee as proponents were:
Eric Stafford, Kansas Chamber (Attachment 2)
Kathleen Smith, Department of Revenue provided an estimated fiscal impact for FY20 in the amount of $187.0 million which is a negative impact to the State General Fund. This includes the business provisions and the itemized deductions allowing Kansans the choice to itemize their deductions on their Kansas returns. The business provisions total around $137.2 million for FY20 that does include multiple years and for the individual provisions it totals $50.1 million for FY20 and includes multiple years. There would be around $820,000 worth of administrative costs the department would have to incur based upon this bill. The majority is due to the choice to itemize deductions on the Kansas return. Total IT costs for this would be around $700.00 to $2,000. and would require three additional customer reps in the amount of $178,000. Ms. Smith stated it is going to be different for the department to administrator this provision noting conformity to the Federal Internal Revenue code does provide stability and predictability for the taxpayers and preparers. With decoupling or not conform to the code makes it more difficult.
In response to a question, Ms. Smith stated there would be some cost to decouple but not as much as mention previously. She remarked she did not have what the administrative cost would be at this point.
David Rankin, Seaboard Corporation (Attachment 3).
Dan Watkins, Wichita Chamber of Commerce (Attachment 4),
Alex Orel, Kansas Bankers Association (Attachment 5).
Written testimony was submitted by the following as proponent for SB22.
John Idoux, CenturyLink (Attachment 6)
Robert Babst, Jr., Metal Finishing Company (Attachment 7).
Don Brown, Cargill (Attachment 8) (Attachment 9)
Appearing before the Committee as an opponent:
Mark Tallman, Kansas Association of School Boards (Attachment 10).
Hearing closed on SB22.
Meeting adjourned 5:15 pm
Next meeting scheduled is February 21, 2019.
