The Kansas Legal Tender Act establishes gold and silver coins as legal tender in the state, defining "legal tender" and "specie" while ensuring that no specie or legal tender is classified as personal property for taxation purposes. The act allows for the exchange of different forms of legal tender without incurring tax liabilities and permits transactions of specie legal tender through both physical and electronic means. 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, clarifying that individuals cannot compel others to accept specie as payment unless specified by law or contract. The attorney general is responsible for enforcing the act, and Kansas courts must uphold contracts that designate specie as 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 an April 15, 2025, deadline for claims related to this provision and includes provisions for contributions to first-time home buyer and adoption savings accounts, allowing these contributions to be claimed as modifications to taxable income. The bill repeals the existing section of K.S.A. 2024 Supp. 79-32,117, reflecting the new tax modifications, and will take effect upon publication in the statute book. Overall, the bill aims to provide tax relief and incentives for specific groups while addressing the treatment of federal tax credits at the state level.

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