The Kansas Legal Tender Act establishes gold and silver coins as legal tender in the state of Kansas and modifies income taxation related to gains from the sale of specie. The bill amends K.S.A. 2024 to 2025 Supp. 79-32,117, defining terms such as "legal tender," "person," and "specie," while outlining the types of specie that qualify. It specifies that no specie or legal tender will be classified as personal property for taxation or regulatory purposes, and transactions involving legal tender will not incur tax liabilities. Additionally, the act prohibits individuals from compelling others to accept specie unless explicitly stated by statute or contract. The attorney general is empowered to enforce the act, and Kansas courts are mandated to require specific performance for breaches of contracts that designate specie as tender.

The bill also introduces modifications to the Kansas tax code, particularly regarding income exclusions and deductions for taxpayers. For taxable years beginning after December 31, 2021, contributions to first-time home buyer savings accounts will be deductible up to $3,000 for individuals and $6,000 for married couples filing jointly. Taxpayers may apply early contributions to the previous taxable year if they choose when filing their return. The bill includes provisions for net operating loss carrybacks and adjustments related to federal tax code changes, with specific deadlines for claims for refunds or amended returns. Additionally, it repeals certain sections of the Kansas tax code and updates effective dates for various provisions, aiming to provide tax relief and clarity for individuals and families, particularly those involved in home buying and adoption processes. The act will take effect upon publication in the statute book.

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