Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


February 22, 2019


The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
Statehouse, Room 123-E
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 179 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 179 is
respectfully submitted to your committee.

Under current law, taxpayers filing as single, head of household, married filing separate, or married
filing jointly are allowed to subtract the amount of Social Security benefits from federal adjusted
gross income for Kansas income tax purposes if the taxpayer has income of $75,000 or less. SB
179 would allow married filing jointly taxpayers to subtract the amount of Social Security benefits
from federal adjusted gross income for Kansas income tax purposes if the taxpayer has income of
$150,000 or less beginning in tax year 2019.

Estimated State Fiscal Effect
FY 2019 FY 2019 FY 2020 FY 2020
SGF All Funds SGF All Funds
Revenue -- -- ($54,400,000) ($54,400,000)
Expenditure -- -- $92,321 $92,321
FTE Pos. -- -- -- --
The Department of Revenue estimates that SB 179 would decrease State General Fund
revenues by $54.4 million in FY 2020, $55.7 million in FY 2021, and $57.0 million in FY 2022.
To formulate these estimates, the Department reviewed data on Social Security benefits from tax
year 2017. The Department adjusted the amount of Social Security benefits to account for cost of
living adjustments that have occurred since tax year 2017 and used an average growth rate of 2.4
The Honorable Caryn Tyson, Chairperson
Page 2—SB 179

percent for future years. The Department created a simulated tax table for married filing jointly
taxpayers with income above $75,000 and below $150,000 that receive Social Security benefits
that shows that State General Fund revenues would decrease by $54.4 million in FY 2020 as a
result of this bill.
The Department of Revenue indicates that it would require a total of $92,321 from the State
General Fund in FY 2020 to implement the bill and to modify the automated tax system. The
required programming for this bill by itself would be performed by existing staff of the Department
of Revenue and outside contract programmer services. In addition, if the combined effect of
implementing this bill and other enacted legislation exceeds the Department’s programming
resources, or if the time for implementing the changes is too short, additional expenditures for
outside contract programmer services beyond the Department’s current budget may be required.
Any fiscal effect associated with SB 179 is not reflected in The FY 2020 Governor’s Budget
Report.

Sincerely,

Larry L. Campbell
Director of the Budget


cc: Lynn Robinson, Department of Revenue
Colleen Becker, Department of Administration


Statutes affected:
As introduced: 79-32