2017 Tax Package - SB 30

SB 30 was passed on June 6, 2017 and was vetoed by Governor Brownback the morning of June 7, 2017. The Legislature promptly overrode the Governor’s veto on the evening of June 7th with a vote of 27-12 in the Senate and 88-31 in the House. Several provisions are effective January 1, 2017. A summary of the bill is below:

Non-Wage Business Income
· 100% repeal of the non-wage business income tax exemption effective January 1, 2017
· Reinstatement of the federal loss carry-forward

Individual Income Tax Rates for 2017
· A three-bracket system will be implemented beginning in tax year 2017 of 2.9%, 4.9% and 5.2%

Individual Income Tax Rates for 2018
· Low income exclusion threshold is reduced to $5,000 for married filers and $2,500 for single filers
· A three-bracket income tax system will be implemented of 3.1%, 5.25% and 5.7%

Itemized Deductions and Credits and Other Provisions
· 50% of medical expenses, mortgage interest and property taxes paid in 2018; increased to 75% in 2019 and 100% in 2020 and thereafter
· Dependent care tax credit will be set at 12.5%of allowable federal amount in 2018, 18.75% in 2019 and 25% in 2020
· Subtraction modification provision relating to net gains from certain livestock and Christmas tree sales is repealed in 2017

STAR Bond Provisions
· Extends the sunset date for the STAR Bonds Financing Act to July 1, 2020
· For the first year of the extension, there will be one year moratorium on the approval of new STAR Bond Districts (effective July 1, 2017)

For a full text of the Conference Committee Report (AR) and Conference Committee Report Brief (CCRB): http://kslegislature.org/li/b2017_18/measures/sb30/

For more information, please call the office of Ronald Castor LC at 913.469.9113.