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12  AN ACT relating to income taxation; establishing a uniform rate system;
13    amending K.S.A. 1996 Supp. 79-32,110 and repealing the existing sec-
14    tion; also repealing K.S.A. 79-32,116, 79-32,118 and 79-32,121 and
15    K.S.A. 1996 Supp. 79-32,119 and 79-32,120.
16
17  Be it enacted by the Legislature of the State of Kansas:
18    Section 1.  K.S.A. 1996 Supp. 79-32,110 is hereby amended to read
19  as follows: 79-32,110. (a) Resident Individuals. Except as otherwise pro-
20  vided by subsection (a) of K.S.A. 79-3220, and amendments thereto, a A
21  tax is hereby imposed upon the Kansas taxable income of every resident
22  individual, which tax shall be computed in accordance with the following
23  tax schedules:
24    (1)  Married individuals filing joint returns.
25  If the taxable income is:                                                             The tax is:
26  Not over $30,000                                                    3.5% of Kansas taxable income
27  Over $30,000 but not over $60,000                        $1,050 plus 6.25% of excess over $30,000
28  Over $60,000                                             $2,925 plus 6.45% of excess over $60,000
29    (2)  All other individuals.
30  If the taxable income is:                                                             The tax is:
31  Not over $20,000                                                    4.4% of Kansas taxable income
32  Over $20,000 but not over $30,000                           $880 plus 7.5% of excess over $20,000
33  Over $30,000                                             $1,630 plus 7.75% of excess over $30,000
34  equal to 27% of the amount equal to the product of the federal income
35  tax liability computed prior to the deduction of allowable credits imposed
36  for the taxable year of the individual, multiplied by a fraction the nu-
37  merator of which is such individual's Kansas adjusted gross income for
38  the taxable year and the denominator of which is such individual's federal
39  adjusted gross income for the taxable year, but such fraction shall not be
40  greater than 1.
41    (b)  Nonresident Individuals. A tax is hereby imposed upon the Kansas
42  taxable income of every nonresident individual, which tax shall be an
43  amount equal to the tax computed under subsection (a) as if the nonres-
HB 2385
                                     

 1  ident were a resident multiplied by the ratio of modified Kansas source
 2  income to Kansas adjusted gross income.
 3    (c)  Corporations. A tax is hereby imposed upon the Kansas taxable
 4  income of every corporation doing business within this state or deriving
 5  income from sources within this state. Such tax shall consist of a normal
 6  tax and a surtax and shall be computed as follows:
 7    (1)  The normal tax shall be in an amount equal to 4% of the Kansas
 8  taxable income of such corporation; and
 9    (2)  the surtax shall be in an amount equal to 3.35% of the Kansas
10  taxable income of such corporation in excess of $50,000.
11    (d)  Fiduciaries. A tax is hereby imposed upon the Kansas taxable
12  income of estates and trusts at the rates provided in paragraph (2) of
13  subsection (a) hereof.
14    New Sec. 2.  The provisions of this act shall be applicable to all tax-
15  able years commencing after December 31, 1996.
16    Sec. 3.  K.S.A. 79-32,116, 79-32,118 and 79-32,121 and K.S.A. 1996
17  Supp. 79-32,110, 79-32,119 and 79-32,120 are hereby repealed.
18    Sec. 4.  This act shall take effect and be in force from and after its
19  publication in the statute book.