Notice

Notice Number:14-11
Tax Type:Homestead Property Tax Refunds
Brief Description:Amended Definition of Income for
Homestead Property Or Property Tax Relief Refund Claims
Retroactive to 2013
Keywords:
Approval Date:07/01/2014


Body:
KANSAS DEPARTMENT OF REVENUE
OFFICE OF POLICY & RESEARCH






Notice 14-11

Amended Definition of Income for
Homestead Property Or Property Tax Relief Refund Claims
Retroactive to 2013

(July 1, 2014)

During the 2014 Legislative Session Senate Bill 265 was passed and signed into law. Section 2 of the Bill amends K.S.A. 79-4502, which defines terms used for homestead property tax relief claims, to change the definition of “income”.

In 2012 the Kansas Legislature enacted major changes to the Kansas income tax act which were effective for tax year 2013. The calculation of Kansas adjusted gross income was changed by the enactment of a new subtraction modification which exempted certain business income from Kansas income tax, and new addition modifications which made certain business losses and deductions subject to the tax. [See Notice 12-11] The new addition modifications were included in K.S.A. 79-32,117, as subsection (b)(xx) through (xxiii) and the new subtraction modification was included as subsection (c)(xx).

The amount of adjusted gross income determined under the Kansas income tax act is used as the starting point in the calculation of income for homestead property tax refund claims. Section 2 of Senate Bill 265 changes the manner in which income is computed for homestead property tax refund purposes by disregarding some of those modifications which were enacted in 2012. The amended language, found in subsection (a) of K.S.A. 79-4502, now provides:
The revised definition of income for homestead property tax refund claims is also used for property tax relief refund claims made under the selective assistance for effective senior relief (SAFESR) program. The controlling statute, K.S.A. 79-32,263 has been amended to provide, in part, that:
Although enacted during the 2014 Legislative Session, the amendments to K.S.A. 79-4502(a) are effective for tax year 2013. As a result, anyone who filed a homestead property or property tax relief refund claim for tax year 2013 should review their claim to see whether they still meet the income qualifications. Anyone who does not qualify will be required to repay the amount they received. In that event, please contact the Department of Revenue for instructions on how to file an amended claim and repay the amount received.



Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site, www.ksrevenue.org. If you have questions about this Notice, please contact:
Taxpayer Assistance Center
Kansas Department of Revenue
915 SW Harrison St., 1st Floor
Topeka, KS 66612-1588
Phone: 785-368-8222
Hearing Impaired TTY: 785-296-6461
Fax: 785-291-3614




Date Composed: 06/05/2014 Date Modified: 06/05/2014