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


March 6, 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 2694 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2694 is
respectfully submitted to your committee.
HB 2694 would expand the Selective Assistance for Effective Senior Relief (SAFESR) tax
credit beginning in tax year 2024. Under current law, if a taxpayer is 65 years of age or older with
household income equal to or less than 120.0 percent of the federal poverty level for two persons
and the appraised value of their residence is under $350,000, they are eligible to claim the 75.0
percent SAFESR tax credit on the amount of property taxes that are timely paid. The bill would
set the SAFESR tax credit based on the age of the taxpayer using the current income and appraised
valuation requirements as follows:
Age of the Taxpayer Tax Credit Percentage
At least 65 years of age but less than 75 years of age 75.0 %
At least 75 years of age but less than 85 years of age 80.0
At least 85 years of age but less than 90 years of age 90.0
At least 90 years of age 100.0
The bill would set the maximum amount of the SAFESR tax credit that could be claimed
at $1,500 in tax year 2024. The bill would increase a maximum amount of the SAFESR tax credit
that could be claimed based on the cost-of-living adjustment published in the Internal Revenue
Code beginning in tax year 2025 and annually thereafter.
The Honorable Adam Smith, Chairperson
Page 2—HB 2694

Estimated State Fiscal Effect
FY 2024 FY 2025 FY 2026
Expenditures
State General Fund -- $69,970 --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $69,970 --
Revenues
State General Fund -- ($5,830,000) ($5,830,000)
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- ($5,830,000) ($5,830,000)
FTE Positions -- -- --
The Department of Revenue estimates that HB 2694 would decrease State General Fund
revenues by $5,830,000 in FY 2025, FY 2026, and FY 2027. To formulate these estimates, the
Department of Revenue reviewed housing data from the U.S. Census Bureau and housing and
property tax data from the Property Valuation Division of the Department of Revenue. While this
bill increases the percentage of property tax to be refunded to claimants based on their age, it also
sets a maximum refund at $1,500 for tax year 2024 with future increases to the maximum refund
amount based on the cost-of-living adjustments. This will likely cause many refunds to decrease
from current levels. Based on tax year 2022 returns, the Department estimates that 2,151 of the
6,304 refund claims would see a decrease in their refund amount, which will increase State General
Fund revenues by an estimated $1,660,000 in FY 2025. Those 2,151 refunds over $1,500 for tax
year 2022 had an average refund of $2,161. The remaining 4,153 had an average refund of
$925.31. Increasing the percentage for refunds based on age is estimated to reduce State General
Fund revenues by $7,490,000 in FY 2025. Resulting in a total reduction of State General fund
revenues of $5,830,00 in FY 2025 with similar results in future fiscal years. The Department
assumes that property taxes would increase by 5.21 percent each year.
The Department of Revenue indicates that it would require a total of $69,970 from the State
General Fund in FY 2025 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 2694 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: 79-32