The Kansas Legal Tender Act establishes gold and silver coins as legal tender in the state, defining "legal tender" as a recognized medium of exchange for debts and taxes. The Act ensures that no specie or legal tender will be classified as personal property for taxation or regulatory purposes, and it specifies that transactions involving the exchange of legal tender or specie will not incur tax liabilities. The attorney general is responsible for enforcing the Act, and Kansas courts are mandated to uphold contracts that designate specie as tender.

Additionally, the bill amends K.S.A. 2024 Supp. 79-32,117 to introduce a subtraction modification for income taxation concerning gains from the sale of specie, allowing individuals to exclude certain gains from their federal adjusted gross income when calculating their Kansas adjusted gross income. The bill also repeals the existing section of K.S.A. 79-32,117, which signifies a significant change in the tax treatment of income and deductions. It introduces various deductions and exemptions for taxpayers, including provisions for refunds or amended returns until April 15, 2025, and outlines specific categories of income and expenses eligible for exclusion, ultimately aiming to provide tax relief and clarity for various groups of taxpayers.

Statutes affected:
As introduced: 79-32