Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


March 6, 2023


The Honorable Adam Smith, Chairperson
House Committee on Taxation
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2204 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2204 is
respectfully submitted to your committee.
HB 2204 would create a new refundable income tax credit for family caregivers of disabled
veterans beginning in tax year 2023. The new tax credit would equal $1,500 for a family caregiver
providing care for a single disabled veteran and equal $3,000 for a family caregiver providing care
for two or more disabled veterans. To qualify for this tax credit, a Kansas resident would have to
provide at least six months of continuous, in-person personal care services to one or more family
members who are disabled veterans, the disabled veteran would be required to have left service
with an honorable discharge or a date of medical discharge, and the disabled veteran has received
a total disability rating for service-connected disability from the U.S. Department of Veterans
Affairs. The Department of Revenue would have the authority to write rules and regulations to
implement the bill.

Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- ($12,800,000) ($12,800,000)
Expenditure -- -- $99,105 $99,105
FTE Pos. -- -- -- --
The Department of Revenue estimates that HB 2204 would decrease State General Fund
revenues by $12.8 million in FY 2024 and future fiscal years. To formulate these estimates, the
The Honorable Adam Smith, Chairperson
Page 2—HB 2204

Department of Revenue reviewed data from the Kansas Commission on Veteran Affairs which
indicate that in 2022, 8,538 Kansas veterans had a 100.0 disability compensation rating. The
Department assumes that all of these disabled veterans would have one qualified family caregiver.
The Department indicates that the bill would require $99,105 from the State General Fund
in FY 2024 to implement the bill and to modify the automated tax system. The required
programming for this bill by itself would be performed by existing staff of the Department of
Revenue. In addition, if the combined effect of implementing this bill and other enacted legislation
exceeds the Department’s programming resources, or if the time for implementing the changes is
too short, additional expenditures for outside contract programmer services beyond the
Department’s current budget may be required. Any fiscal effect associated with HB 2204 is not
reflected in The FY 2024 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Lynn Robinson, Department of Revenue