Vetoed by Governor Laura Kelly

Vote Smart's Synopsis:

Vote to concur with house amendments and pass a bill that amends state tax laws for families and small businesses.

Highlights:

• Specifies that the following will be added to the federal adjusted gross income (Sec. 1):

• The amount of any deduction claimed under section 965(c) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2016, in determining federal adjusted gross income;

• The amount of any deduction claimed under section 250(a)(1)(B) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, in determining federal adjusted gross income; and

• The amount deducted by reason of a carry forward of disallowed business interest pursuant to section 163(j) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, as in effect on January 1, 2018.

• Specifies that the following  will be subtracted from the federal adjusted gross income (Sec. 1):

• 100 percent of deferred foreign income under section 965(a) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2016, before any deductions authorized under 965(c) of the code;

• 100 percent of global intangible low-taxed income under section 951A of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, before any deductions authorized under 250(a)(1)(B) of the code; and

• The amount disallowed as a deduction pursuant to section 163(j) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, as in effect on January 1, 2018.

• Authorizes an individual to deduct the Kansas itemized deduction in place of the Kansas standard deduction for the 2018 tax year and the following tax years (Sec. 2).

• Authorizes a taxpayer to file an amended return on or before December 31, 2019, in order to deduct the Kansas itemized deduction in place of the Kansas standard deduction for the 2018 tax year (Sec. 2).

• Exempts corporations from their usual Kansas taxable income in determination of the federal taxable income for all taxable years starting after December 31, 2017, instead applying section 118 of the federal internal revenue code of 1986 beginning December 21, 2017 (Sec. 3).

• Specifies that there will be added to federal taxable income the amount disallowed as a deduction pursuant to section 162(r) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, as in effect on January 1, 2018 (Sec. 3).

• Requires a marketplace facilitator to collect and remit retail sales or use tax on all taxable retail sales made or facilitated by the marketplace facilitator into Kansas on and after October 1, 2019, if the marketplace facilitator has in excess of $100,000 of cumulative gross receipts from retail sales sourced to Kansas (Sec. 6):

• For the 2018 calendar year;

• From January 1, 2019 to September 30, 2019; or

• During the current or immediately preceding calendar year. 

• Establishes a tax rate of 5.5 percent on the gross receipts from the sale of food and food ingredients starting October 1, 2019 (Sec. 13).

• Increases the tax rate to 6.5 percent for the privilege of engaging in the business of selling tangible personal property at retail in Kansas, or rendering or furnishing any of the services taxable under this act (Sec. 15).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass with amendment a bill that amends state tax laws for families and small businesses .

Highlights:

• Specifies that the following will be added to the federal adjusted gross income (Sec. 1):

• The amount of any deduction claimed under section 965(c) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2016, in determining federal adjusted gross income;

• The amount of any deduction claimed under section 250(a)(1)(B) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, in determining federal adjusted gross income; and

• The amount deducted by reason of a carry forward of disallowed business interest pursuant to section 163(j) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, as in effect on January 1, 2018.

• Specifies that the following  will be subtracted from the federal adjusted gross income (Sec. 1):

• 100 percent of deferred foreign income under section 965(a) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2016, before any deductions authorized under 965(c) of the code;

• 100 percent of global intangible low-taxed income under section 951A of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, before any deductions authorized under 250(a)(1)(B) of the code; and

• The amount disallowed as a deduction pursuant to section 163(j) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, as in effect on January 1, 2018.

• Authorizes an individual to deduct the Kansas itemized deduction in place of the Kansas standard deduction for the 2018 tax year and the following tax years (Sec. 2).

• Authorizes a taxpayer to file an amended return on or before December 31, 2019, in order to deduct the Kansas itemized deduction in place of the Kansas standard deduction for the 2018 tax year (Sec. 2).

• Exempts corporations from their usual Kansas taxable income in determination of the federal taxable income for all taxable years starting after December 31, 2017, instead applying section 118 of the federal internal revenue code of 1986 beginning December 21, 2017 (Sec. 3).

• Specifies that there will be added to federal taxable income the amount disallowed as a deduction pursuant to section 162(r) of the federal internal revenue code of 1986 for all taxable years starting after December 31, 2017, as in effect on January 1, 2018 (Sec. 3).

• Requires a marketplace facilitator to collect and remit retail sales or use tax on all taxable retail sales made or facilitated by the marketplace facilitator into Kansas on and after October 1, 2019, if the marketplace facilitator has in excess of $100,000 of cumulative gross receipts from retail sales sourced to Kansas (Sec. 6):

• For the 2018 calendar year;

• From January 1, 2019 to September 30, 2019; or

• During the current or immediately preceding calendar year. 

• Establishes a tax rate of 5.5 percent on the gross receipts from the sale of food and food ingredients starting October 1, 2019 (Sec. 13).

• Increases the tax rate to 6.5 percent for the privilege of engaging in the business of selling tangible personal property at retail in Kansas, or rendering or furnishing any of the services taxable under this act (Sec. 15).

Full Bill Text