Brief⁽¹⁾

S.B. 44 would amend K.S.A. 1998 Supp. 79-32,206 to expand from 15 percent to 20 percent the amount of certain property taxes actually and timely paid for all property tax years starting in 1999 which may be claimed as refundable credits against income, premiums, or privilege tax liability. The credits would be available for property taxes so paid on commercial and industrial machinery and equipment in subclasses (5) and (6) of class (2) of the property tax classification amendment in the Kansas Constitution and on certain oil and gas machinery and equipment in subclass (2).

Background

The 1998 Legislature enacted credits of 15 percent of property taxes actually and timely paid on such property beginning with property tax year 1998.

S.B. 44 was recommended as part of the Governor's tax package.

Based on the latest estimates from the Department of Revenue, the bill would reduce State General Fund receipts as follows:

These estimates differ from the ones used on p. 7 of Volume 1 of the Governor's Budget Report--$8.6 million for FY 2000; $9.5 million for FY 2001; and $10.4 million for FY 2002.

No disaggregation was provided by either the Department of Revenue or the Budget Division with respect to the impact on specific State General Fund sources. The bill would be expected to reduce receipts from the corporation income tax, the individual income tax, the financial institutions privilege tax, and insurance premiums taxes.

1. *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.ink.org/public/legislative/bill_search.html.