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Minutes for HB2467 - Committee on Taxation
Short Title
Providing a Kansas income tax subtraction modification for certain amounts received as compensation for members of the armed forces.
Minutes Content for Tue, Feb 15, 2022
Adam Siebers, Assistant Revisor, provided an overview for HB2467 stating the bill would provide a Kansas income tax subtraction modification for compensation for members of the armed forces. Under the bill, an amount not to exceed $30,000 received as compensation would be allowed as such subtraction modification for an individual serving on active duty in the armed forces or a guard member who is attending active duty training or has completed annual training days or annual training drill pay. For married filing taxpayers who are members of the armed forces could qualify for up to $30,000 for a maximum amount of $60,000. Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, stated based on information received from the conferees during the hearing on HB2467 on January 31, 2022, the department contacted Eugene Bradley, National Guard of Kansas and legislative liaison. The information provided cut the number of individuals that would qualify for this modification to around 8,211 who have listed Kansas as their domicile and the National Guard members was approximately 10,165 for a approximate amount of 18,000. Based on the information received, the Department is now using an effective tax rate of 3.1 percent versus 3.4 percent. Ms. Smith noted for simplicity, the department assumed that 18,000 would receive the full $30,000 modification; therefore, with an effective date of tax year 2022 the fiscal impact for FY2023 would be $7.9 million and for FY2024 it would be down to $4.0 million. She stated FY2023 includes both tax years 2022 and 2023 which is the reason the amount is higher the first year. Ms. Smith stood for questions from Committee members.
Representative Mason moved, seconded by Representative Eplee, the Committee recommend HB2467 be passed.
Representative Gartner moved, seconded by Representative Helgerson, to amend HB2467 (Attachment 1).
Committee discussion ensued.
Motion passed.
Representative Mason renewed his motion to recommended HB2467 be passed as amended. Motion passed.
