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HB 2059

Providing a Kansas income tax subtraction modification for certain amounts paid by the taxpayer during the taxable year as a member of a health care sharing ministry.

2025-2026 Regular Session

Allows Kansas residents in qualifying health care sharing ministries to subtract their annual payments from Kansas AGI starting in 2026.

Died in Committee
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Bill Summary · HB 2059

Summary — HB 2059 (Kansas)

Title: Providing a Kansas income tax subtraction modification for certain amounts paid by the taxpayer during the taxable year as a member of a health care sharing ministry

Purpose / Intent

Allow Kansas taxpayers who participate in qualifying health care sharing ministries (HCSMs) to subtract from Kansas adjusted gross income the amounts they paid during the taxable year as members of such ministries. The subtraction applies beginning with tax year 2026.

Note: The materials provided include other unrelated drafts from other states that also use the bill number “HB 2059.” This summary addresses the Kansas income‑tax bill described in the fiscal note and the Kansas statutory amendment text.

Key provisions

  • Adds a subtraction modification to K.S.A. 2024 Supp. 79‑32,117 (Kansas adjusted gross income): taxpayers may subtract amounts paid during the taxable year as members of a health care sharing ministry.
  • Subtraction only applies if the amounts paid are included in the taxpayer’s federal adjusted gross income (i.e., payments are not already excluded federally).
  • The subtraction is limited to payments to entities that meet the bill’s requirements to be classified as a health care sharing ministry (the bill incorporates such classification requirements).
  • Effective for taxable years beginning in 2026.

Who is affected

  • Individual Kansas taxpayers who are members of qualifying health care sharing ministries (Department of Revenue estimate: ~32,466 Kansans).
  • Kansas State General Fund (reduced income tax revenue).
  • Kansas Department of Revenue (administration and tax system programming).

Fiscal impact (from Kansas Division of the Budget / Dept. of Revenue fiscal note)

  • Estimated State General Fund revenue reduction:
    • FY 2026: ($1,000,000) — reflects partial-year effect (30% of tax year 2026 liability)
    • FY 2027: ($3,400,000)
    • FY 2028: ($3,400,000)
  • Assumptions behind estimate:
    • Estimated participants: 32,466 Kansans
    • Typical annual plan cost: $3,010
    • Effective tax rate applied: 3.5%
  • One‑time implementation cost (State General Fund) for Dept. of Revenue programming: $84,870 (FY 2026).
    • Department will perform required programming with existing staff; additional contract programmer costs could be required if combined workload or timing exceeds capacity.
  • Estimates acknowledge uncertainty due to lack of exact participant counts.

Implementation / timeline

  • Subtraction applies beginning with tax year 2026 (i.e., returns filed in 2027 for tax year 2026).
  • FY 2026 budget impact reflects partial‑year recognition of tax liabilities; later fiscal years reflect full tax‑year effects.

Procedural status & sponsors

  • Introduced: January 24, 2025
  • Status: Referred to House Committee on Taxation
  • Sponsor(s): Representative Lisa Fink (primary); cosponsors Rachel Keshel and Khyl Powell

Notes & uncertainties

  • Fiscal estimates rely on industry and out‑of‑state data; actual revenue impact depends on actual number of participating Kansans, plan costs, and filing behavior.
  • The bill requires payments to be included in federal AGI; it does not change federal tax treatment.

Compiled from official sources — confirm details with the bill’s official record.

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