SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2109
As Amended by House Committee on Taxation

Brief*
HB 2109, as amended, would phase out income taxation
on all Social Security benefits over four years.
For tax year 2023, the bill would expand the existing
income tax exemption for federally taxable Social Security
benefits available to taxpayers with $75,000 or less federal
adjusted gross income (FAGI) to phase out taxpayer eligibility
for the exemption through a linear transition formula from
$75,000 in FAGI to $125,000 in FAGI.
For tax year 2024, the phase out of eligibility for the
exemption would be extended to $175,000 in FAGI.
For tax year 2025, the phase out of eligibility for the
exemption would be extended to $275,000 in FAGI.
For tax year 2026 and all years thereafter, all Social
Security benefits would be exempt from Kansas income tax.

Background
The bill was introduced by the House Committee on
Taxation at the request of Representative Sawyer.


____________________
*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
House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by representatives of AARP-Kansas, Kansas
Chamber of Commerce, and Tax Simple Center. The
proponents generally stated the bill would provide income tax
relief for Social Security benefit recipients and eliminate the
tax “cliff” currently in Kansas statutes.
Written-only proponent testimony was provided by
representatives of Americans for Prosperity-Kansas and
Kansas Policy Institute.
The House Committee amended the bill to replace a
single linear transition from $75,000 in FAGI to $100,000 in
FAGI to the phased elimination of the tax on Social Security
previously described.

Fiscal Information
According to information provided to the House
Committee from the Department of Revenue, the bill as
amended, would reduce State General Fund receipts by
$49.4 million in FY 2024, $63.5 million in FY 2025, $93.4
million in FY 2026, and $124.4 million in FY 2027. The fiscal
effect of the bill, as amended, is not reflected in The FY 2024
Governor’s Budget Report.
However, the fiscal effect of the bill, as introduced,
reducing state receipts by a smaller amount, is reflected in
The FY 2024 Governor’s Budget Report.
Taxation; income tax; Social Security benefits; phase out


2- 2109


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