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Session of 2000
          HOUSE BILL No. 2821           By Representative Powell           2-2          

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  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. 1999 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. 1999 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

2
  1       tax and a surtax and shall be computed as follows:
  2             (1) The normal tax shall be in an amount equal to 4% of the Kansas
  3       taxable income of such corporation; and
  4             (2) the surtax shall be in an amount equal to 3.35% of the Kansas
  5       taxable income of such corporation in excess of $50,000.
  6             (d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable
  7       income of estates and trusts at the rates provided in paragraph (2) of
  8       subsection (a) hereof.
  9             (e) For all taxable years commencing after December 31, 1998, and
10       in addition to the tax otherwise imposed pursuant to this section, there is
11       hereby imposed a tax upon the gross income of a taxpayer derived from
12       attorney's fees for representation of the state awarded pursuant to the
13       provisions of any settlement agreement entered into after January 1, 1997,
14       by this state and any private entity or combination thereof. Such tax shall
15       be equal to the product computed by multiplying such gross income, or
16       distributive share thereof, received by a taxpayer during a taxable year
17       by 50%. All such income shall be deemed to have been derived from
18       sources in Kansas. There shall be allowed as a credit against the tax lia-
19       bility imposed by this subsection the amount of tax imposed upon such
20       income pursuant to subsections (a) through (c). 
21       Sec.  2. K.S.A. 1999 Supp. 79-32,110 is hereby repealed.
22        Sec.  3. This act shall take effect and be in force from and after its
23       publication in the statute book.