SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 8
As Amended by House Committee on Taxation

Brief*
SB 8, as amended, would amend law related to property
tax filings and penalties for late remittance of withholding
taxes.

Personal Property Tax Filings
The bill would limit the instances in which a taxpayer
must file statements regarding tangible personal property for
tax purposes, reduce penalties for late filings, and specify
circumstances in which extensions of time for filing such
statements and abatements of penalties would be provided.
Single Initial Filing
The bill would provide that if an initial statement listing
tangible personal property for taxation has been filed with a
county appraiser, future annual filings would only be required
when there has been a change to report that is related to the
property previously listed or to the initial statement.
Reduced Penalties
The bill would reduce the penalty for late filing of oil and
gas leases and tangible personal property from 5 percent to 2
percent per month with the maximum penalty for late filing
being reduced from 25 percent to 10 percent. The penalty for
____________________
*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
a failure to file resulting in escaped taxation would be reduced
from 50 percent to 12.5 percent.
Extensions of Time and Abated Penalties
The bill would require county appraisers, who currently
have discretionary authority to do so, to grant an extension of
a reasonable amount of time for taxpayers to file tangible
personal property for taxation upon a showing of good cause.
County appraisers and the State Board of Tax Appeals
would be required to abate late filing penalties under cases of
excusable neglect or in the event the property has been
repossessed by a creditor who paid the taxes on the property.
[Note: Current law provides only the State Board of Tax
Appeals with discretionary authority to abate such penalties.]
Beginning in tax year 2022, such good cause and
excusable neglect would be specified to include instances in
which tangible personal property had been previously
classified as real property or a fixture to real property and was
reclassified to be personal property. Such instances would be
specified to include machinery and equipment used in
industries of grain storage and processing and ethanol or
other biofuels processing.

Withholding Tax Remittance Penalties
The bill would replace the 15 percent penalty for
employers not timely remitting withholding taxes with a
graduated penalty system providing for penalties as follows:
● 2 percent, if the remittance is 1 to 5 days late;
● 5 percent, if the remittance is 6 to 15 days late;
● 10 percent, if the remittance is more than 15 days
late; and

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 ● 15 penalty, if the remittance is more than 15 days
late and the Department of Revenue notified the
taxpayer regarding the delinquency, but the tax
was not remitted within 10 days of the notification.
Background
The bill was prefiled for introduction by Senator Steffen
on January 3, 2023.

Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by Senator Steffen; representatives of Kansas
Grain and Feed Association, Kansas Manufactured Housing
Association, and Renew Kansas Biofuels Association; and a
private citizen. The proponents generally stated the bill would
alleviate penalties that seem stronger than necessary and
may penalize taxpayers for simply forgetting to annually re-
notify county appraisers of property.
Written-only proponent testimony was provided by
representatives of the Kansas Cooperative Council, Kansas
Livestock Association, and an attorney whose practice deals
with property tax matters.
The Senate Committee amended the bill to insert the
provisions to require only a single filing and specifying
circumstances related to extensions of time and abatements
of penalties.

House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by Senator Steffen, a private citizen, and
representatives of the Kansas Grain and Feed Association
and Renew Kansas Biofuels Association and the Kansas
Manufactured Housing Association. The proponents generally
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stated the bill would reduce excessively punitive late filing
penalties and make personal property tax compliance less
burdensome for taxpayers.
Written-only proponent testimony was provided by
representatives of the Kansas Cooperative Council and the
League of Kansas Municipalities.
Written-only neutral testimony was provided by a
representative of the Kansas County Appraisers Association.
No other testimony was provided.
The House Committee amended the bill to clarify the
effective date of the provision requiring a single initial filing
and inserted the contents of HB 2411, regarding withholding
remittance penalties. Background information for HB 2411 is
provided below.

HB 2411 (Withholding Remittance Penalties)
The bill was introduced by the House Committee on
Taxation at the request of Representative Waggoner.
House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by Representative Waggoner and
representatives of the Kansas Chamber of Commerce and
National Federation of Independent Businesses. The
proponents generally stated the current penalties are
unnecessarily punitive, and the penalties proposed by the bill
mirror federal law.
Written-only proponent testimony was provided by a
representative of Americans for Prosperity-Kansas.
No other testimony was provided.

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Fiscal Information

SB 8 (Personal Property Tax Filings)
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue indicates enactment of the bill would reduce state
building fund receipts by $27,485 per year, state uniform
school levy receipts by $366,468 per year, and local property
taxes by $18.3 million per year.
The Department of Revenue indicated amendments by
the Senate Committee on Assessment and Taxation and the
House Committee on Taxation to the provisions related to
personal property tax filing have not altered the original fiscal
estimate. Any fiscal effect associated with enactment of the
bill is not reflected in The FY 2024 Governor’s Budget Report.

HB 2411 (Withholding Tax Remittance Penalties)
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department of Revenue indicates
enactment of the bill has the potential to increase state
receipts by a negligible amount beginning in FY 2024, due to
the possibility that smaller penalties could result in more late
filings, resulting in higher net penalty collections. Any fiscal
effect associated with the bill is not reflected in The FY 2024
Governor’s Budget Report.
Taxation; tax filings; penalties; property tax; withholding tax


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Statutes affected:
As introduced: 79-332a, 79-1422, 79-1427a
As Amended by Senate Committee: 79-306, 79-332a, 79-1422, 79-1427a
As Amended by House Committee: 79-306, 79-332a, 79-1422, 79-1427a, 79-32
Enrolled: 79-306, 79-332a, 79-1422, 79-1427a, 79-1460, 79-1476, 79-1496, 79-1609, 79-2005, 79-2988, 79-2989, 79-32, 79-3606, 12-2022, 79-4508a