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 C. Proffitt, Director Laura Kelly, Governor


February 15, 2024


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 2636 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2636 is
respectfully submitted to your committee.
HB 2636 would allow renters to claim the Homestead Property Tax Refund for tax year
2024 and in each future tax year. The bill would allow renters to use 15.0 percent of their gross
rent paid as a proxy for the property taxes paid.

Estimated State Fiscal Effect
FY 2024 FY 2025 FY 2026
Expenditures
State General Fund -- $316,375 $129,805
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $316,375 $129,805
Revenues
State General Fund -- ($14,070,000) ($14,070,000)
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- ($14,070,000) ($14,070,000)
FTE Positions -- 2.00 2.00
The Honorable Adam Smith, Chairperson
Page 2—HB 2636

The Department of Revenue estimates that HB 2636 would decrease State General Fund
revenues by $14,070,00 in FY 2025, FY 2026, and FY 2027.
To formulate these estimates, the Department of Revenue reviewed data from the U.S. Census
and the Homestead Property Tax Refund Program. The Department indicates that the Homestead
Property Tax Refund was last available to renters in tax year 2012 and estimates that taxpayers
would claim approximately $14,070,000 in additional Homestead Property Tax Refunds in each
year beginning in tax year 2024 or FY 2025.
The Department indicates that the bill would require $316,375 from the State General Fund
in FY 2025 to implement the bill and to modify the automated tax system. The bill would require
the Department to hire 2.00 new Customer Service Representatives to answer questions from
taxpayers. The Department estimates that ongoing expenses for salaries and wages for the 2.00
new FTE positions would total $129,805 from the State General Fund in FY 2026. 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 2636 is not
reflected in The FY 2025 Governor’s Budget Report.

Sincerely,

Adam C. Proffitt
Director of the Budget


cc: Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 79-4502, 79-4508, 79-4509, 79-4501, 79-4508a, 79-4511, 79-4522