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KS SB25
Bill
Status
1/16/2025
Primary Sponsor
Assessment and Taxation
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AI Summary
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Individuals and corporations may open insurance savings accounts at FDIC-insured financial institutions starting January 1, 2026, to pay property and casualty insurance premiums and deductibles
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Annual contribution limits are $6,000 for individuals, $12,000 for married couples filing jointly, and $25,000 for corporations, with contributions and interest earnings exempt from Kansas state income tax
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Funds may only be used for eligible insurance expenses, transferred to another insurance savings account, invested in CDs, or used to pay account service fees; non-qualifying withdrawals are subject to tax recapture
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Financial institutions are not required to track withdrawals, designate accounts in their systems, or report to the state beyond existing legal requirements, and bear no liability for account holder compliance
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Secretary of Revenue must adopt implementing regulations by December 1, 2025, and the Commissioner of Insurance receives nonexclusive authority to market the program statewide
Legislative Description
Enacting the insurance savings account act, allowing individuals and corporations to establish insurance savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications under the Kansas income tax act.
Last Action
Senate Hearing: Wednesday, January 29, 2025, 9:30 AM Room 548-S
1/29/2025