SESSION OF 2020
SUPPLEMENTAL NOTE ON SENATE BILL NO. 196
As Amended by Senate Committee on
Assessment and Taxation

Brief*
SB 196, as amended, would allow individual income
taxpayers to begin claiming the expensing deduction
(provided by KSA 79-32,143a) for the costs of placing certain
tangible property and computer software into service in the
state beginning in tax year 2020. The bill also would require
all taxpayers claiming the Kansas expensing deduction to
offset the amount of federal expensing deduction claimed
pursuant to Section 179 of the federal Internal Revenue Code
beginning in tax year 2020.

Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of the Kansas
Chamber of Commerce.
In the Senate Committee hearing, representatives of the
Kansas Chamber of Commerce and the Kansas Policy
Institute testified in support of the bill, stating the bill would
correct an unintended consequence of previous tax reform
bills and align Kansas with federal law related to expensing
deductions. A representative of the Kansas Restaurant and
Hospitality Association testified in opposition to the bill, stating
it would compound problems the federal expensing deduction
law poses for the restaurant industry.

____________________
*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
 The Senate Committee amended the bill to change the
tax year in which the provisions become effective to 2020 and
adopted a technical amendment to update statutory
references within the bill.
According to a fiscal estimate provided by the Kansas
Department of Revenue upon Senate Committee action, the
amended bill would increase state revenues by $2.2 million in
FY 2021, $2.3 million in FY 2022, and $2.4 million in FY
2023. Any fiscal effect associated with enactment of the bill is
not reflected 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