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Minutes for HB2727 - Committee on Taxation
Short Title
Increasing the income limit for the income tax subtraction modification for social security income.
Minutes Content for Mon, Mar 14, 2022
Chairperson Smith opened the hearing for HB2727.
Adam Siebers, Assistant Revisor, provided an overview for HB2727 that increases the amount of the subtraction modification for determining Kansas adjusted gross income. (Attachment 1) Mr. Siebers for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2727 that would decrease the State General Fund revenues by approximately $1.8 million in FY2023, $6.0 million in FY2024, and $6.5 million in FY2023. The individual income tax estimate for FY2023 includes 30.0 percent of tax year 2023 tax liability. The individual income tax estimate for FY2024 includes 70.0 percent of tax year 2023 tax liability and 30.0 percent of tax year 2024 tax liability. Ms. Smith stood for questions from Committee members.
Proponent:
John Lee, Tax Simple Center, testified as a proponent for HB2727 noting Kansas needs to resolve the Kansas social security income tax cliff problem. He noted there is one concern and one suggestion regarding HB2727. He noted to use one simple formula for resolving the Kansas social security income tax cliff problem. The rates change smoothly and gradually from 100.0 percent to 0. (Attachment 2) Mr. Lee stood for questions from Committee members.
Chairperson Smith closed the hearing for HB2727.
