Session of 1999
         
HOUSE BILL No. 2386
         
By Representative Powell
          
2-10
          
  9             AN  ACT relating to income taxation; imposing a tax upon income derived
10             from certain state controversy settlement agreements; amending
11             K.S.A. 1998 Supp. 79-32,110 and repealing the existing section.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 1998 Supp. 79-32,110 is hereby amended to read
15       as follows: 79-32,110. (a) Resident Individuals. Except as otherwise pro-
16       vided by subsection (a) of K.S.A. 79-3220, and amendments thereto, a
17       tax is hereby imposed upon the Kansas taxable income of every resident
18       individual, which tax shall be computed in accordance with the following
19       tax schedules:
20             (1) Married individuals filing joint returns.
21       If the taxable income is:The tax is:
22       Not over $30,000 3.5% of Kansas taxable income
23       Over $30,000 but not over $60,000 $1,050 plus 6.25% of excess over $30,000
24       Over $60,000 $2,925 plus 6.45% of excess over $60,000
25           (2) All other individuals.
26        (A) For tax year 1997:
27       If the taxable income is:The tax is:
28       Not over $20,000 4.1% of Kansas taxable income
29       Over $20,000 but not over $30,000 $820 plus 7.5% of excess over $20,000
30       Over $30,000 $1,570 plus 7.75% of excess over $30,000
31        (B) For tax year 1998, and all tax years thereafter:
32       If the taxable income is:The tax is:
33       Not over $15,000 3.5% of Kansas taxable income
34       Over $15,000 but not over $30,000 $525 plus 6.25% of excess over $15,000
35       Over $30,000 $1,462.50 plus 6.45% of excess over $30,000
36       (b) Nonresident Individuals. A tax is hereby imposed upon the Kansas
37       taxable income of every nonresident individual, which tax shall be an
38       amount equal to the tax computed under subsection (a) as if the nonres-
39       ident were a resident multiplied by the ratio of modified Kansas source
40       income to Kansas adjusted gross income.
41             (c) Corporations. A tax is hereby imposed upon the Kansas taxable
42       income of every corporation doing business within this state or deriving
43       income from sources within this state. Such tax shall consist of a normal
44       tax and a surtax and shall be computed as follows:
45             (1) The normal tax shall be in an amount equal to 4% of the Kansas
46       taxable income of such corporation; and
47             (2) the surtax shall be in an amount equal to 3.35% of the Kansas
48       taxable income of such corporation in excess of $50,000.
49             (d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable
50       income of estates and trusts at the rates provided in paragraph (2) of
51       subsection (a) hereof.
52             (e) For all taxable years commencing after December 31, 1998, and
53       in addition to the tax otherwise imposed pursuant to this section, there is
54       hereby imposed a tax upon the gross income of a taxpayer derived pur-
55       suant to the provisions of any settlement agreement entered into after
56       January 1, 1998, by this state and any private entity or combination
57       thereof. Such tax shall be equal to the product computed by multiplying
58       such gross income, or distributive share thereof, received by a taxpayer
59       during a taxable year by 50%.  
60       Sec.  2. K.S.A. 1998 Supp. 79-32,110 is hereby repealed.
61        Sec.  3. This act shall take effect and be in force from and after its
62       publication in the statute book.