The Kansas Legal Tender Act establishes gold and silver coins as legal tender in the state, defining "legal tender" and "specie" while clarifying that specie legal tender includes U.S. government-issued coins and any other specie designated by a court. The act ensures that no specie or legal tender will be classified as personal property for taxation purposes, and transactions involving different forms of legal tender will not incur tax liabilities. It also allows for the transaction of specie legal tender through both physical and electronic means, adhering to existing regulations. Additionally, the bill amends K.S.A. 2024 Supp. 79-32,117 to provide an income tax subtraction modification for gains from the sale of specie, exempting such gains from state income tax to encourage the use of gold and silver as legal tender.

Moreover, the bill introduces modifications to the Kansas tax code, including a 50% disallowance of the federal employee retention credit for certain taxable years, contingent upon taxpayers proving prior filing and payment of Kansas income tax on the disallowed amount. It establishes a deadline of April 15, 2025, for claims related to this provision and includes provisions for deductions for contributions to first-time home buyer and adoption savings accounts. The bill also repeals K.S.A. 2024 Supp. 79-32,117, which may have contained previous tax provisions now superseded by the new modifications. The act will take effect upon publication in the statute book, aiming to provide tax relief and clarity for Kansas taxpayers while aligning state tax regulations with federal guidelines.

Statutes affected:
As introduced: 79-32
{As Amended by Senate Committee of the Whole}: 79-32