| |
|
CORPORATE
INCOME TAX |
|
| For corporations
whose facilities are located solely
within state boundaries, the tax rate
is 4% of net income. Net income in excess
of $50,000 is subject to 3.35% surtax.
|
Corporations
with locations in and out of Kansas
use a three-factor formula to calculate
their tax rate. |
| The result
of the formula is divided by three to
provide an average percentage. This
percentage is multiplied by total net
federal income to determine net income
apportioned to Kansas. The corporate
income tax rate is 4% for the first
$50,000 of apportioned net income, and
7.35% for excess above $50,000. |
Corporations
may opt to use a two-factor (sales and
property) apportionment formula if the
payroll factor for a taxable year exceeds
200% of the average of the property
and sales factors. |
INDIVIDUAL INCOME TAX
Joint return rates:
3.5% on first $30,000 income
$1,050 plus 6.25% of income between
$30,000-$60,000
$2,925 plus 6.45% of income over $60,000
Individual return rates:
3.5% on first $15,000 income
$525 plus 6.25% of income between $15,000-$30,000
$1,462.50 plus 6.45% of income over
$30,000 |
|
FRANCHISE TAX |
| Corporations
in Kansas are assessed an annual franchise
tax at the rate of $2 per $1,000 of
shareholders’ equity attributable
to Kansas. No tax shall be less than
$40 or more than $5,000. Shareholders’
equity is equal to the sum of paid-in
capital stock less treasury stock, capital
paid-in in excess of par, and retained
earnings. The three- or two-factor formula
(used to calculate corporate income
tax liability) is again used to calculate
the portion of shareholders’ equity attributable to Kansas. |
Franchise Tax Update
Corporate Franchise Tax (%) – The 2007 Kansas Legislature passed new legislation to phase out the franchise tax in Kansas over five years. Beginning in tax year 2007, the exemption threshold to pay a franchise tax will be increased from $100,000 to $1.0M of net worth. The rate subsequently would be reduced from the current $1.25 per $1,000 of shareholder equity or net worth to $0.9375 in tax year 2008; $0.625 in tax year 2009; and $0.3125 in tax year 2010. The tax would be repealed altogether effective in tax year 2011.
|
|
SALES AND USE TAX |
State
County
Hutchinson
Total |
5.30%
1.00%
0.75%
7.05% |
|
|
TANGIBLE PROPERTY TAX |
Both real
and tangible personal property are subject
to ad valorem taxation by cities, counties,
and special taxing districts. All property
is appraised at its fair market value. The tangible
property tax rate depends on the mill
levy of the local taxing district.
|
The
Reno County Assessor assesses both real
and tangible personal property, and
taxes are paid to the County Treasurer.
The following percentages are used to
determine the assessed value of each
class of property.
Commercial Property: 25%
Residential Property: 11.5% |
| MILL
DISTRIBUTION |
| ORGANIZATION |
MILLS |
|
| State |
1.500 |
| County |
31.862 |
| City |
41.626 |
| Hutchinson Public Library |
5.401 |
| School District (USD 308) |
50.664 |
| College (HCC) |
22.774 |
|
| Total |
153.827 |
|
| Example:
|
| Business Located
in the City of Hutchinson, USD 308 District |
|
| Appraised Value |
$ 500,000 |
| Assessment
Rate |
x 25% |
|
| Assess Valuation |
$ 125,000 |
| Mills (153.827) |
x .153827 |
|
| Annual Real Estate
Taxes |
$19,228.28 |
|
|
