summary
Introduced
02/19/2025
02/19/2025
In Committee
02/20/2025
02/20/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
AN ACT concerning income taxation; relating to Kansas adjusted gross income; exempting certain qualified tips from state income tax by providing a subtraction modification for such tips; amending K.S.A. 2024 Supp. 79-32,117 and repealing the existing section.
AI Summary
This bill proposes to create a new tax exemption for qualified tips received by employees starting in the 2026 tax year. Specifically, the bill allows individuals to subtract up to $25,000 in qualified tips from their Kansas state income tax calculations. Qualified tips are defined as cash tips received in occupations that traditionally receive tips, such as restaurant servers, with some important restrictions. The tips must be reported on tax statements and included in federal adjusted gross income. The bill excludes tips from employers where the employee's total compensation in the previous year exceeded a certain federal threshold. Additionally, the Secretary of Revenue is required to publish a list of occupations that traditionally receive tips within 90 days of the act's enactment. This tax exemption aims to provide financial relief for workers in tip-based industries by reducing their state tax burden on tip income.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Assessment and Taxation (Senate)
Last Action
Senate Hearing: Monday, March 3, 2025, 9:30 AM Room 548-S (on 03/03/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://kslegislature.gov/li/b2025_26/measures/sb277/ |
| Fiscal Note - Ficsal Note: As introduced | https://kslegislature.gov/li/b2025_26/measures/documents/fisc_note_sb277_00_0000.pdf |
| BillText | https://kslegislature.gov/li/b2025_26/measures/documents/sb277_00_0000.pdf |
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