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Minutes for HB2567 - Committee on Taxation
Short Title
Increasing the subtraction modification for social security income.
Minutes Content for Wed, Feb 12, 2020
Mr. Siebers provided an overview on HB2567 stating under current law, taxpayers filing as single, head of household, married filing separate, or married filing jointly are allowed to subtract the full amount of Social Security benefits from federal adjusted gross income for Kansas income tax if the taxpayer has $75,000 or less. HB2567 would reduce the subtraction modification of Social Security benefits from federal adjusted gross income by 10.0 percent for each $1,000 above the $75,000 threshold for all taxpayers beginning in tax year 2021.
Kathleen Smith provided information on the fiscal note for HB2567 stating it is estimated the State General Fund revenue will decrease $1.8 million in FY 2021, $6.1 million in FY 2022, and $6.3 million in FY2023. The number of taxpayers impacted by HB2567 will be 13,000.
Representative Jim Gartner testified as a proponent for HB2567 noting the bill would increase the income limit from $75,000 to $84,000. The subtraction modification for social security income would be reduced by 10 percent for each $1,000 of federal adjusted gross income in excess of $75,000 for tax year 2021. Representative Gartner provided a chart in his testimony of the exemption allowance by threshold (Attachment 3).
Written only testimony as a proponent for HB2567 was presented by:
Michael Austin, Kansas Policy Institute (Attachment 4).
Hearing closed for HB2567.
