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


February 15, 2023


The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 124 by Senator Pittman
In accordance with KSA 75-3715a, the following fiscal note concerning SB 124 is
respectfully submitted to your committee.
Under current law, taxpayers are required to pay state income taxes on certain gambling
winnings but are not allowed to deduct any losses from gambling. SB 124 would allow 100.0
percent of gambling losses claimed on federal income tax returns to be claimed as an itemized
deduction on state income tax returns beginning in tax year 2023 and in each future tax year.

Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- ($8,600,000) ($8,600,000)
Expenditure -- -- $63,176 $63,176
FTE Pos. -- -- -- --
The Department of Revenue estimates that SB 124 would decrease State General Fund
revenues by $8.6 million in FY 2024 and in each future fiscal year. To formulate this estimate,
the Department reviewed Internal Revenue Service data on gambling losses claimed on federal tax
returns. The Department of Revenue estimates that Kansas taxpayers would claim approximately
$171.0 million in gambling losses in tax year 2023 under the provisions of the bill, which would
reduce state income tax collections by approximately $8.6 million in tax year 2023 or FY 2024.
The Honorable Caryn Tyson, Chairperson
Page 2—SB 124

The Department of Revenue indicates that it would require a total of $63,176 from the State
General Fund in FY 2024 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. Any fiscal effect associated with SB 124 is not
reflected in The FY 2024 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Tamara Emery, Department of Administration
Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 79-32