SESSION OF 2020
SUPPLEMENTAL NOTE ON SENATE BILL NO. 174
As Amended by Senate Committee on
Assessment and Taxation

Brief*
SB 174, as amended, would increase the level of federal
adjusted gross income (FAGI) at which Social Security
benefits become taxable for married taxpayers filing joint
returns from $75,000 to $100,000.

Background
The bill was introduced by the Senate Committee on
Federal and State Affairs at the request of Senator Pyle. In
the Senate Committee on Assessment and Taxation hearing
on March 12, 2019, Senator Pyle testified as a proponent
stating the bill would make Kansas a more friendly tax
environment for retirees and could reduce out-migration of
Kansas retirees.
The Senate Committee amended the bill to change the
elimination of income tax on Social Security benefits in the bill
as introduced, to an increase in the threshold of FAGI for
married taxpayers filing jointly before Social Security benefits
become subject to the Kansas income tax, to change the
effective tax year from 2019 to 2020, and to update an
outdated statutory reference.
The fiscal note prepared by the Division of the Budget
on the bill as introduced, states the Department of Revenue
(Department) estimates the bill would decrease State
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
revenues by $93.2 million in FY 2020, $95.5 million in FY
2021, and $97.8 million in FY 2022.
On February 25, 2020, the Department provided a
revised fiscal estimate on the bill, as amended by the Senate
Committee. The Department estimates the bill would
decrease State revenues by $33.1 million in FY 2021, $26.3
million in FY 2022, and $27.0 million in FY 2023. Any fiscal
effect associated with enactment of the bill is not included in
The FY 2021 Governor’s Budget Report.


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Statutes affected:
As introduced: 79-32
As Amended by Senate Committee: 79-32