The Kansas Legal Tender Act establishes gold and silver coins as legal tender in the state of Kansas, defining "legal tender" and "specie," which includes both gold and silver coins and refined bullion. The act specifies that no specie or legal tender shall be classified as personal property for taxation or regulatory purposes, and it exempts the exchange of legal tender or the sale and purchase of specie from tax liabilities, except for taxable distributions from retirement plans holding specie. Additionally, the act allows transactions of specie through physical or electronic means, while providing an income tax subtraction modification for gains from the sale of specie to encourage its use. It also clarifies that individuals cannot be compelled to accept specie as payment unless specified by statute or contract, with enforcement overseen by the attorney general.

In conjunction with the Kansas Legal Tender Act, the bill amends current tax law to introduce modifications for Kansas taxpayers, including a 50% disallowance of the federal employee retention credit for certain taxable years, contingent upon prior filing and payment of Kansas income tax. It establishes a deadline of April 15, 2025, for claims related to this provision and includes provisions for contributions to first-time home buyer and adoption savings accounts. The bill also repeals K.S.A. 2024 Supp. 79-32,117, updating previous tax provisions and clarifying the treatment of various income sources, including benefits from the federal social security act and military bonuses. The act will take effect upon publication in the statute book, ensuring prompt implementation of these changes for Kansas taxpayers.

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