SB 39 — Establishing the Kansas legal tender act and providing for an income tax subtraction modification for sales of specie.

As Amended by House Committee {As Amended by Senate Committee of the Whole} Session of 2025 SENATE BILLNo.BILL No.

39 By Committee on Federal and StateAffairsState Affairs 1-16 AN ACT concerning legal tender;

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and (b) "specie"(b) "person" means:

(1) Any individual, business entity or financial institution;

and (2) the state or any agency, instrumentality or political subdivision thereof;

and (c) "specie" means:

(d) The provisions of this section{ subsections (a) through (c)} shall notSB apply39—Am. to taxable distributions from any retirement plan account that holds specie.

{(e) Specie legal tender may be transacted, transmitted or exchanged by physicalHC or2 electronicnot meansapply subject to thetaxable Kansasdistributions moneyfrom transmission act and any rulesretirement andplan regulationsaccount promulgatedthat thereunder.}holds SBspecie. 39—Am.

{(e) Specie legal tender may be transacted, transmitted or exchanged by SCWphysical 2or electronic means subject to the Kansas money transmission act and any rules and regulations promulgated thereunder.} New Sec.

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(iv) Federal income tax refunds received by the taxpayer if the deduction of the taxes being refunded resulted in a tax benefit for Kansas incomeSB tax39—Am. purposes during a prior taxable year.

by HC 3 income tax purposes during a prior taxable year.

For purposes hereof, a tax benefit shall be deemed to have resulted if the amount of the tax had been deducted in determining income subject to a Kansas income tax for a prior year regardless of the rate of taxation applied in such prior year to the Kansas SBtaxable 39—Am.income, but only that portion of the refund shall be included as bears the same proportion to the total refund received as the federal taxes deducted in the year to which such refund is attributable bears to the total federal income taxes paid for such year.

by SCW 3 taxable income, but only that portion of the refund shall be included as bears the same proportion to the total refund received as the federal taxes deducted in the year to which such refund is attributable bears to the total federal income taxes paid for such year.

(xii) ForSB taxable39—Am. years commencing after December 31, 2004, amounts received as withdrawals not in accordance with the provisions of K.S.A.

74-50,204,by andHC amendments4 thereto,(xii) For if,taxable atyears thecommencing timeafter ofDecember contribution31, to2004, an individual development account, such amounts werereceived subtractedas fromwithdrawals the federal adjusted gross income pursuant to subsection (c)(xiii), or if such amounts are not alreadyin includedaccordance inwith the federalprovisions adjustedof grossK.S.A. SB 39—Am.

by74-50,204, SCWand 4amendments thereto, if, at the time of contribution to an individual development account, such amounts were subtracted from the federal adjusted gross income pursuant to subsection (c)(xiii), or if such amounts are not already included in the federal adjusted gross income.

(1) Loss from business as determined under the federal internal revenue code and reported from schedule C and on line 12 of the taxpayer's form 1040 federal individual incomeSB tax39—Am. return;

by HC 5 income tax return;

and (3) SBfarm 39—Am.loss as determined under the federal internal revenue code and reported from schedule F and on line 18 of the taxpayer's form 1040 federal income tax return;

by SCW 5 farm loss as determined under the federal internal revenue code and reported from schedule F and on line 18 of the taxpayer's form 1040 federal income tax return;

(xxiv) For taxable years commencing after December 31, 2013, that portion of the amount of any expenditure deduction claimed in determining federal adjusted gross income for expenses paid for medical care of the taxpayer or the taxpayer's spouse or dependents when such expenses were paid or incurred for an abortion, or for a health benefit plan, asSB defined39—Am. in K.S.A.

by HC 6 as defined in K.S.A.

(xxv) For taxable years commencing after December 31, 2013, that SBportion 39—Am.of the amount of any expenditure deduction claimed in determining federal adjusted gross income for expenses paid by a taxpayer for health care when such expenses were paid or incurred for abortion coverage, a health benefit plan, as defined in K.S.A.

by SCW 6 portion of the amount of any expenditure deduction claimed in determining federal adjusted gross income for expenses paid by a taxpayer for health care when such expenses were paid or incurred for abortion coverage, a health benefit plan, as defined in K.S.A.

(xxix) For all taxable years beginning after December 31, 2024, the amount of any contributions to, or earnings from, an adoption savings accountSB if39—Am. distributions from the account were not used to pay for expenses or transactions authorized pursuant to K.S.A.

2024by Supp.HC 7 account if distributions from the account were not used to pay for expenses or transactions authorized pursuant to K.S.A.

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Contributions to, or earnings from, such account shall also include any amount resulting from the account holder not designating a surviving SBpayable 39—Am.on death beneficiary pursuant to K.S.A.

by2024 SCW2025 7Supp. payable on death beneficiary pursuant to K.S.A.

202438- Supp.2504(e), and amendments thereto.

38-2504(e), and amendments thereto.

(vii) Amounts received as annuities under the federal civil service retirement system from the civil service retirement and disability fund and other amounts received as retirement benefits in whatever form which wereSB earned39—Am. for being employed by the federal government or for service in the armed forces of the United States.

by HC 8 were earned for being employed by the federal government or for service in the armed forces of the United States.

(ix) Amounts received by retired employees of a city and by retired SBemployees 39—Am.of any board of such city as retirement allowances pursuant to K.S.A.

by SCW 8 employees of any board of such city as retirement allowances pursuant to K.S.A.

For taxable years beginning after December 31, 2012, and endingSB before39—Am. January 1, 2017, the amount of modification under this subsection shall exclude the portion of income or loss reported on schedule E and included on line 17 of the taxpayer's form 1040 federal individual income tax return.

(xv) Theby cumulativeHC amounts9 notending exceedingbefore $3,000,January 1, 2017, the amount of modification under this subsection shall exclude the portion of income or $6,000loss forreported aon marriedschedule coupleE filingand aincluded jointon return,line for17 eachof designatedthe beneficiarytaxpayer's thatform SB1040 39—Am.federal individual income tax return.