6 April 2005

Governor signs bill giving tax exemptions to Kansans in uniform

As part of Kansas’s commitment to residents in the military, Governor Kathleen Sebelius today signed a bill providing income tax exemptions for bonuses received by Kansans who serve in the armed forces.

“We are secure at home because of our military‘s service here and abroad. With this legislation, we honor their dedication by easing their financial burdens. Giving tax exemptions for the service bonuses paid to Kansans by the military is a simple, effective way to do this,” Governor Sebelius said.

Beginning in the current tax year, Kansans who are members of the U.S. Armed Forces, including the Kansas Army and Air National Guard, will receive an individual income tax exemption for recruitment, sign-up, or retention bonuses. The bill also exempts educational and student loan repayments received by taxpayers as incentives related to their service in the armed forces, including the Kansas Guard.

In January, Governor Sebelius announced the Kansas Military Bill of Rights, a package of incentives and benefits designed to ease the burden of service in the armed forces.

At that time the Governor signed an executive directive allowing the state to make up the difference between pay and allowances National Guard members and reservists receive from the military and their state salary at the time they were called to active duty. Additionally, a one-time payment of $1,000 goes to state employees in the National Guard and reserves upon activation for 180 days or more. These payments are retroactive for all activations since September 11, 2001.

The bill number is SB 256.