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 10, 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 2419 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2419 is
respectfully submitted to your committee.
HB 2419 would create a nonrefundable individual income tax credit to Kansas resident
taxpayers of up to $500 per cat or dog, for up to a total of three animals, for expenses incurred and
paid by the taxpayer for care of the animal. The credit would begin in tax year 2023. The taxpayer
would be required to provide receipts and documentation to substantiate the expenses incurred and
to prove the animal has been spayed or neutered. Eligible expenses would be limited to
veterinarian services, premiums and deductibles for pet insurance, medicines and vaccinations,
and microchips.

Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- ($145,900,000) ($145,900,000)
Expenditure -- -- $94,635 $94,635
FTE Pos. -- -- -- --
The Department of Revenue estimates that HB 2419 would decrease State General Fund
revenues by $145.9 million in FY 2024 and subsequent fiscal years. To formulate these estimates,
the Department of Revenue assumes that 67.0 percent of Kansas taxpayers have at least one cat or
dog as a pet and expend at least $250 on qualified expenses, resulting in a total credit of $217.8
The Honorable Adam Smith, Chairperson
Page 2—HB 2419

million. Because the credit is nonrefundable, the Department assumes that only 65.0 percent, or
$145.9 million, of the credit would be used each year.
The Department indicates that the bill would require $94,635 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 2419 is not
reflected in The FY 2024 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Lynn Robinson, Department of Revenue