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 1, 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 2384 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2384 is
respectfully submitted to your committee.
Under current law, the standard deduction for the calculation of Kansas income taxes is set
at $3,500 for single individual taxpayers, $8,000 for married filing status, and $6,000 for head of
household. HB 2384 would increase the standard deduction annually by the amount adjusted by
the cost-of-living adjustment published in the Internal Revenue Code beginning in tax year 2023.

Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- ($24,500,000) ($24,500,000)
Expenditure -- -- $31,095 $31,095
FTE Pos. -- -- -- --
The Department of Revenue estimates that HB 2384 would decrease State General Fund
revenues by $24.5 million in FY 2024, $32.4 million in FY 2025, and $42.3 million in FY 2026.
To formulate these estimates, the Department of Revenue simulated this tax policy change based
on actual tax return data from tax year 2020. The Department increased the standard deduction
amounts by 5.0 percent in tax year (TY) 2023, 4.0 percent in TY 2024, 3.0 percent in TY 2025,
and 2.0 percent in tax TY 2026. The standard deduction amounts used to calculate the fiscal note
are as follows:
The Honorable Adam Smith, Chairperson
Page 2—HB 2384

Filing Status Current Law TY 2023 TY 2024 TY 2025 TY 2026
Married Filing Jointly $8,000 $8,400 $8,736 $8,998 $9,178
Single $3,500 $3,675 $3,822 $3,937 $4,016
Head of Household $6,000 $6,300 $6,552 $6,749 $6,884
Married Filing Separately $4,000 $4,200 $4,368 $4,499 $4,589
The Department indicates that the bill would require $31,095 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.
The Department of Administration indicates that adjusting state income tax collections has
the potential to have a fiscal effect on the amount of revenue collected from its debt setoff program.
This program intercepts individual income tax refunds and homestead tax refunds and applies
those amounts to debts owed to state agencies, municipalities, district courts, and state agencies in
other states. Debts include, but are not limited to child support, taxes, educational expenses, fines,
services provided to the debtor, and court ordered restitution. As the dollar amounts of refunds
are increased, the amount available for possible debt setoffs is also increased. However, the
Department is unable to make an estimate of the amount of additional debt setoffs that would be
intercepted as a result of the bill. Any fiscal effect associated with HB 2384 is not reflected in The
FY 2024 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Lynn Robinson, Department of Revenue
Tamara Emery, Department of Administration


Statutes affected:
As introduced: 79-32