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


April 5, 2019


The Honorable Steven Johnson, Chairperson
House Committee on Taxation
Statehouse, Room 185-N
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Fiscal Note for HB 2409 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2409 is
respectfully submitted to your committee.
HB 2409 would allow any taxpayer who contributes to a postsecondary educational
institution, community college or technical college a tax credit not to exceed 70.0 percent of the
amount contributed, up to $500,000 for any tax year. The total amount of credits allowed in the
program must not exceed $10.0 million for any tax year. If the amount of the tax credit for a
taxpayer who contributes to a postsecondary educational institution, community college or
technical college exceeds the taxpayer's income tax liability for the tax year, the amount that
exceeds the tax liability may be carried over for deduction from the taxpayer's income tax liability
in the next succeeding taxable year or years until the total amount of the tax credit has been
deducted from tax liability. The bill would take affect after its publication in the statute book.
The Department of Revenue does not have sufficient information to estimate a reliable
fiscal impact related to the contributions made to a postsecondary educational institution,
community college or technical college. However, the Department indicates the bill would
decrease annual revenues to the State General Fund by no more than $10.0 million as specified.
The Department indicates it would require a total of $869,338 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
The Honorable Steven Johnson, Chairperson
Page 2—HB 2409

services beyond the Department’s current budget may be required. Any fiscal effect associated
with HB 2409 is not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Kelly Oliver, Board of Regents
Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 79-32