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 22, 2023


The Honorable Adam Smith, Chairperson
House Committee on Taxation
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2433 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2433 is
respectfully submitted to your committee.
Under current law, taxpayers that contribute to a qualified tuition program are allowed to
subtract up to $3,000 (up to $6,000 for married filing jointly) from the amount of federal adjusted
gross income that is used to calculate Kansas income taxes if the contribution occurs in the same
tax year. HB 2433 would allow taxpayers who contribute to a qualified tuition program on and
after January 1 but prior to filing the individual income tax return on April 15th the ability to use
this subtraction modification in the previous tax year. The contribution would not be allowed as a
subtraction modification in more than one tax year. The bill would also remove outdated language
from previous tax years.

Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- $77,427 $77,427
FTE Pos. -- -- -- --
The Department of Revenue indicates HB 2433 would have no fiscal effect on State
General Fund revenues. The Department indicates that the bill would require $77,427 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
The Honorable Adam Smith, Chairperson
Page 2—HB 2433

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 Office of the State Treasurer indicates that the costs to implement the bill are estimated
to be negligible and could be absorbed within existing resources. The bill has the potential to
increase contributions to a qualified tuition program by unknown amounts. Any fiscal effect
associated with HB 2433 is not reflected in The FY 2024 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Lynn Robinson, Department of Revenue
John Hedges, Office of the State Treasurer


Statutes affected:
As introduced: 79-32