SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR
HOUSE BILL NO. 2232
As Recommended by Senate Committee on
Assessment and Taxation

Brief*
Senate Sub. for HB 2232 would permit, for individual
income tax year 2006, a taxpayer to carry back a net
operating loss incurred from the sale at a loss of a historic
hotel located in a community with less than 2,500 citizens and
improved by funds borrowed against the hotel and farmland
owned by the taxpayer that is located within 20 miles of the
hotel, for up to 3 years to offset the gain on the sale of such
farmland if the majority of the proceeds from the sale of the
farmland were used to pay off the mortgage on the historic
hotel.
The bill would permit the taxpayer to file an amended
return for the three prior years.

Background
The bill was introduced by the House Committee on
Taxation at the request of Representative V. Miller and
concerned the development of certain continuing education
courses for appraisers. Those provisions were enacted into
law by 2023 HB 2002.
Senate Committee on Assessment and Taxation
There was no hearing on the bill in the Senate
Committee. No testimony was provided. The Senate
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Committee removed the contents of HB 2232 and inserted
the amended contents of SB 125. Background information for
SB 125 is provided below.
SB 125 (Historic Hotel Net Operating Losses)
SB 125 was introduced by the Senate Committee on
Assessment and Taxation at the request of a private citizen.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, a private citizen
testified as a proponent, stating the bill would allow him to
offset a loss he incurred from the sale of a historic hotel in
2006 against gains he incurred from a 2005 sale of farmland.
No other testimony was provided.
The Senate Committee amended the bill to remove a
provision that would have provided interest to be paid to the
taxpayer.
Fiscal information
According to the fiscal note prepared by the Division of
the Budget on SB 125, as introduced, the Department of
Revenue estimates enactment of the bill would result in a
reduction of revenues to the State General Fund, but is
unable to provide a specific estimate due to taxpayer
confidentiality rules.
Any fiscal effect associated with the bill is not reflected
in The FY 2025 Governor’s Budget.
Taxation; income tax; net operating loss; historic hotel


2- 2232


Statutes affected:
As introduced: 19-430, 58-4105
Version 2: 79-32