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Minutes for HB2420 - Committee on Taxation
Short Title
Establishing tax withholding requirements when certain employees work in multiple states.
Minutes Content for Wed, Feb 14, 2024
Adam Siebers, Assistant Revisor, provided an overview for HB2420 that establishes withholding requirements for certain employees who work in multiple states (Attachment 1). Mr. Siebers stood for questions from the Committee.
Kathleen Smith, Kansas Department of Revenue, stated there would be no fiscal impact to the State General Fund.
Proponent:
Eric Stafford, Vice President of Government Affairs, testified as a proponent for HB2420 a bill that increases Kansas' one-day safe harbor from personal income tax and withholding obligations for employees traveling outside of their home state for a temporary period to a 30-day safe harbor. Technology has made it possible to work remotely from anywhere, state laws should be modernized to avoid unexpected tax liability who temporarily perform their duties in nonresident states Mr. Stafford stated they did receive some feedback on a provision in HB2420, Page 2, Line 19, which reads "provides a substantially similar exclusion". The national taxpayers union believes this has proved to be a a problem since not all states, including Kansas, had yet adopted a 30-day grace period (Attachment 2). Mr. Stafford stood for questions from Committee members.
Written only testimony as proponents for HB2420 was submitted by the following:
Fred Nicely, Senior Tax Counsel, Council on State Taxation (COST), Washington, D.C. (Attachment 3)
Leah Vukmir, Senior Vice President of State Affairs, National Taxpayers Union, Washington, D.C. (Attachment 4)
There were no conferees that were neutral or in opposition to HB2420.
Chairperson Smith closed the hearing for HB2420.
There being no further business, Chairperson Smith adjourned the meeting.
