Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


March 25, 2021


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 217 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 217 is
respectfully submitted to your committee.
SB 217 would add Atchison, Cowley, Crawford, Dickinson, Ford, Franklin, Miami, and
Pottawatomie counties to the list of 77 counties that are currently designated as Rural Opportunity
Zones. The program offers individuals who relocate from outside the state to a county that has
been designated as a Rural Opportunity Zone the opportunity to participate in the Student Loan
Forgiveness Program and receive a 100.0 percent state income tax credit through tax year 2021.
The Department of Revenue estimates that allowing Atchison, Cowley, Crawford,
Dickinson, Ford, Franklin, Miami, and Pottawatomie counties to be designated as Rural
Opportunity Zones would decrease State General Fund revenues by $738,400 in FY 2022 from
provisions regarding the state income tax credit. The Department of Revenue indicates that it
would require a total of $5,315 from the State General Fund in FY 2022 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. 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.
The Department of Commerce indicates that it is currently responsible for administering
the Rural Opportunity Zones Program. No information exists to accurately estimate the number
of individuals who would qualify for the Student Loan Forgiveness Program. Assuming that 56
individuals would qualify for the Student Loan Forgiveness Program; the Department of
Commerce would require approximately $84,000 from the State General Fund in FY 2022 for the
The Honorable Caryn Tyson, Chairperson
Page 2—SB 217

state obligations of this program. However, the amount may be significantly higher or
significantly lower depending on the level of participation by Atchison, Cowley, Crawford,
Dickinson, Ford, Franklin, Miami, and Pottawatomie counties that would be responsible for the
local match for this program. The Department indicates that it is at maximum work capacity for
reviewing applications for Rural Opportunity Zones. The Department estimates additional
expenditures of $64,800 from the State General Fund in FY 2022 for an additional 1.00 FTE
position to review applications from individuals that are proposing to move to the new Rural
Opportunity Zones proposed in the bill. Any fiscal effect associated with SB 217 is not reflected
in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Sherry Rentfro, Department of Commerce
Jay Hall, Association of Counties
Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 74-50