Vote Smart's Synopsis:

Vote to pass a bill that reduces income tax rates for individuals and corporations.

Highlights:

• Authorizes a decrease in state income tax if in the preceding year the state experienced an excess percentage of at least 2 percent in “selected actual state general fund receipts” (Sec. 1).          

• Defines “selected actual state general fund receipts” as receipts from certain taxes and fees including, but not limited to, the following taxes and fees (Sec. 1):
• The individual and corporation income and corporation franchise taxes;
• The financial institutions privilege taxes;
• The annual franchise fees charged following law and mineral severance taxes; and
• The retail sales, compensating use, cigarette and tobacco product, cereal malt beverage, liquor gallonage, and liquor drink and enforcement taxes. 

• Authorizes the Secretary of Revenue to reduce income tax rates by 0.5 percent per year for each respective tax bracket pending the excess percentage income of selected funds from the preceding year (Sec. 1).

• Prohibits corporations from having income taxes lowered until all individual marginal income tax rates have been reduced to 0 percent (Sec. 1).

• Requires the tax rates computed by the Secretary under the provisions of this bill that are below 0.4 percent to be reduced to 0 percent (Sec. 1).

• Reduces state income taxes for married couples filing for joint returns by the following amounts, as of 2013 (Sec. 2):
• Couples that did not make more than $30,000 that fiscal year will pay 3.0 percent of their income in income taxes in relation to the 3.5 percent rate as of 2012; or
• Couples that made more than $30,000 that fiscal year will pay a $900 flat tax plus  4.9 percent of all income over 30,000 in relation to the 1,050 flat rate and 6.5 percent rate as of 2012.

• Reduces income tax for all individuals other than married couples filing for joint returns by the following amount, as of 2013 (Sec. 2):
• Individuals who made more than $15,000 that fiscal year will pay 3 percent of their income in income taxes as of 2013 in relation to the 3.5 present rate of 2012; and
• Individuals who made over 15,000 will pay a flat rate of $450 plus 4.0 percent of all income over $15,000 in relation to the $525 flat rate and 6.25 percent rate of 2012.

• Establishes the following individuals and businesses as taxable (Sec. 2):
• Nonresidents;
• Corporations; and
• Fiduciaries.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that reduces income tax rates for individuals and corporations.

Highlights:

• Requires the excess percentage amount that is gathered when the active fiscal year’s “selected actual state general fund receipts” exceed the same amount for the immediately preceding fiscal year by at least 2 percent to be certified to the Kansas Secretary of Revenue and Budget Director (Sec. 1).

• Defines “selected actual state general fund receipts” as receipts from certain taxes and fees including, but not limited to, the following taxes and fees (Sec. 1):
• The individual and corporation income and corporation franchise taxes;
• The financial institutions privilege taxes;
• The annual franchise fees charged following law and mineral severance taxes; and
• The retail sales, compensating use, cigarette and tobacco product, cereal malt beverage, liquor gallonage, and liquor drink and enforcement taxes.

• Requires the secretary to reduce income tax rates for the following tax year based on the excess percentage amount of the active year as follows (Sec. 1):
• For individuals with the highest marginal income tax rate, the rate is to be calculated by such fiscal year’s excess percentage minus 0.5 percent;
• For individuals with the lowest marginal income tax rate, the rate is to be calculated by such fiscal year’s excess percentage plus 0.5 percent; and
• For any individual marginal income tax rate that is below 0.4 percent, the rate is to be 0 percent.

• Requires rate reductions to be applied for the surtax on corporations by such excess percentage amount only after all individual marginal income tax rates have been reduced to 0 percent (Sec. 1).

• Requires rate reductions to be “proportionately” applied for the tax on corporations, the tax on state and national banks, and the tax on trust companies and savings and loan associations by such excess percentage only after first being applied to the surtax until reduced to 0 percent (Sec. 1).

• Requires the tax rates computed by the secretary under the provisions of this bill that are below 0.4 percent to be reduced to 0 percent (Sec. 1).

Full Bill Text