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Minutes for HB2538 - Committee on Taxation
Short Title
Increasing the Kansas standard deduction.
Minutes Content for Thu, Feb 6, 2020
Adam Siebers provided an overview for HB2538 would increase the standard deduction for single individual taxpayers from $3,000. to $4,000, married filing status from $7,500 to $8,000 and head of household from $5,500 to $6,000 in tax year 2020.
Kathleen Smith, Department of Revenue has estimated for HB2538 would increase the standard deduction amounts with a cost of living adjustment. It will decrease state general fund revenues by $52.4 million in FY2021. In FY2022 it would be a negative $45,800,000 and FY2023 a negative $52,700,000.
Representative Gartner testified as a proponent for HB2538 stating he introduced the bill and offered another option to increase the standard deduction for all Kansas tax filers. He noted for the last two years there has been testimony concerning decoupling from the Federal Tax code and allowing Kansas tax filers to itemize deductions. This bill would give tax relief to all Kansans instead of just the 18% that decide to itemize on the Kansas return (Attachment 5).
Michael Austin, Kansas Policy Institute testified as a proponent for HB2538 stating the bill protects more low-income Kansans from state taxation; the November 2019 Consensus Revenue Estimates makes HB2538 budget neutral; and the bill maintains Kansas taxpayer purchasing power (Attachment 6).
John Wilson, Kansas Action for Children provided written testimony as neutral for HB2538 (Attachment 7).
John Lee, Tax Simple Center testified as an opponent to HB2538 noting this bill has less tax revenue for the state (Attachment 8).
Hearing closed for HB2538.
Meeting adjourned 4:40 pm.
Next meeting scheduled is February 10, 2020.
