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HB 2058

Relating to conforming estate tax to federal basic exclusion amount; prescribing an effective date.

2025 Regular Session Introduced by Lucetta Elmer and 2 co-sponsors

Raises the SAFE SR two-person income cap to $28,000 (2025) for seniors 65+ owning and living in their home, with automatic COLA increases from 2026, expanding eligibility.

In committee upon adjournment.
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Bill Summary · HB 2058

Summary — HB 2058 (Kansas)

Providing for an increased household‑income threshold to qualify for the Selective Assistance for Effective Senior Relief (SAFE SR) income tax credit

Purpose / Intent

HB 2058 raises and fixes the household‑income eligibility cutoff for the SAFE SR refundable income tax credit for senior homeowners, and thereafter indexes that cutoff for inflation. The goal is to expand eligibility so more low‑income seniors can claim the credit that offsets a portion of residential property taxes on their principal residence.

Key provisions

  • Amends K.S.A. 79‑32,263 (SAFE SR).
  • For tax year 2025 and thereafter, sets the household income limit for a two‑person household at $28,000 for eligibility to claim the SAFE SR credit.
  • Beginning in tax year 2026 and annually thereafter, increases that $28,000 limit by the federal cost‑of‑living adjustment (the IRC §1(f)(3) adjustment) for the calendar year in which the taxable year begins.
  • Preserves existing SAFE SR credit structure:
    • For 2011 and later tax years (through 2024 and continuing), eligible taxpayers age 65+ may claim a credit equal to 75% of property/ad valorem taxes actually and timely paid on the taxpayer’s principal residence (subject to other statutory limits).
    • Credit cannot be claimed if the taxpayer received a homestead property tax refund for the same property/year.
    • Excess credit beyond income tax liability is refundable.
  • Repeals and replaces the existing statutory section as described.

Who is affected

  • Primary beneficiaries: Kansas taxpayers age 65 or older who own and live in their principal residence and whose household income (two‑person household measure) is at or below the new threshold ($28,000 in 2025, indexed thereafter). The fiscal note also references an existing residence appraised‑value cap of under $350,000 as a current eligibility condition.
  • State government: Department of Revenue (administration/programming) and the State General Fund (revenue impact).

Fiscal and implementation effects (per Division of the Budget / Dept. of Revenue fiscal note)

  • Estimated additional claimants: ~1,000 taxpayers.
  • Average credit per additional claimant: $1,470.
  • Estimated State General Fund revenue reductions:
    • FY 2026 (tax year 2025 claims): ($1,470,000)
    • FY 2027: ($1,540,000)
    • FY 2028: ($1,620,000)
  • One‑time implementation cost: $20,000 (FY 2026) for automated tax system modifications; programming to be done by existing Dept. of Revenue staff unless workload necessitates contracting.
  • The bill’s fiscal effects were not included in the FY 2026 Governor’s Budget Report.

Timeline / procedural status

  • Introduced: January 24, 2025.
  • Referred to: House Committee on Taxation (status recorded as “Referred to Committee on Taxation”).

Notes / constraints

  • The change is specific to how the household‑income eligibility is defined (fixed dollar amount then indexed) rather than continuing to use a percent of the federal poverty level.
  • Other statutory eligibility rules for the SAFE SR credit (age 65+, credit limited to taxes actually paid, refundability rules, and interaction with homestead refunds) remain in effect.

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

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