Session of 2000
SENATE BILL No. 407
By Committee on Assessment and Taxation
1-12
9 AN ACT
concerning the administration of the intangibles gross earnings
10 tax; amending K.S.A.
12-1,101 and 12-1,104 and repealing the existing
11 sections.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 Section
1. K.S.A. 12-1,101 is hereby amended to read as follows:
12-
15 1,101. (a) In the year 1982 or in any year
thereafter, the board of county
16 commissioners of any county is hereby
authorized to adopt a resolution
17 imposing a tax for the benefit of such
county upon the gross earnings
18 derived from money, notes and other
evidence of debt having a tax situs
19 in such county. The rate of tax shall be in
the amount of 1/8 of 1% of the
20 total gross earnings, or any multiple
thereof not exceeding an amount
21 equal to 3/4 of 1% of the total gross
earnings derived from such money,
22 notes and other evidence of debt during the
taxable year of the taxpayer
23 ending during the last preceding calendar
year.
24 (b) In the year
1982 or in any year thereafter, the governing body of
25 any city is hereby authorized to pass an
ordinance imposing a tax for the
26 benefit of such city upon the gross
earnings derived from money, notes
27 and other evidence of debt having a tax
situs in such city. The rate of tax
28 shall be in the amount of 1/8 of 1% of the
total gross earnings, or any
29 multiple thereof not exceeding an amount
equal to 21/4% of the total gross
30 earnings derived from such money, notes and
other evidence of debt
31 during the taxable year of the taxpayer
ending during the last preceding
32 calendar year.
33 (c) In the year
1982 or in any year thereafter, the township board of
34 any township is hereby authorized to adopt
a resolution imposing a tax
35 for the benefit of such township upon the
gross earnings derived from
36 money, notes and other evidence of debt
having a tax situs in such town-
37 ship and outside the corporate limits of
any city of the third class. The
38 rate of tax shall be in the amount of 1/8
of 1% of the total gross earnings,
39 or any multiple thereof not exceeding an
amount equal to 21/4% of the
40 total gross earnings derived from such
money, notes and other evidence
41 of debt during the taxable year of the
taxpayer ending during the last
42 preceding calendar year.
43 (d) For the
purpose of authorizing taxes commencing in the year 1983
2
1 and thereafter the county, city or
township shall adopt a resolution or
2 pass an ordinance on or before
September 1 of the year preceding the
3 year in which the levy of such taxes
will commence. A certified copy of
4 any resolution or ordinance adopted
or passed imposing, reimposing or
5 eliminating a tax pursuant to this
section shall be submitted to the county
6 clerk of the county or counties in
which the taxing subdivision is located.
7 On or before July 15, 1983,
and July 15 of each year thereafter, the clerk
8 of each county shall transmit
to the director of taxation of the state de-
9 partment of revenue a list
showing the tax rate, if any, imposed on money,
10 notes and other evidence of debt
for the following year by the county and
11 every city or township situated
within such county.
12 (e) On or after
January 1, 1983, upon submission of a petition which
13 is in conformance with the provisions of
article 36 of chapter 25 of the
14 Kansas Statutes Annotated, and amendments
thereto, and is signed by
15 not less than 5% of the qualified electors
of a county, city or township
16 levying a tax under the provisions of this
act requesting the same, the
17 governing body of such taxing subdivision
shall be required to submit to
18 the electors of such taxing subdivision at
the next state general election
19 or general election held for the election
of officers of such taxing subdi-
20 vision a proposition which shall be placed
on the ballot in substantially
21 the following form: "Shall ________
(county) (city) (township) eliminate
22 the tax on gross earnings derived from
money, notes and other evidence
23 of debt and be authorized to impose and
levy property taxes, in addition
24 to any aggregate levy amount limitation on
the taxing subdivision's ad
25 valorem tax levy authority, as may be
necessary to offset the revenue lost
26 from elimination of the tax on gross
earnings derived from money, notes
27 and other evidence of debt?" Any such
election shall be noticed, called
28 and conducted in the manner prescribed in
the general bond law. Any
29 election which was otherwise conducted in
accordance with the provisions
30 of this subsection but which was held on
April 5, 1983, on any proposition
31 which is submitted to the electors of a
township by the governing body
32 of such township pursuant to a petition
submitted under this subsection
33 is hereby declared valid. If a majority of
the electors voting thereon at
34 such election shall vote in favor of such
proposition, the board of county
35 commissioners or the township board shall
provide by resolution or the
36 governing body of any city shall provide by
ordinance that no tax shall be
37 levied upon gross earnings derived from
money, notes and other evidence
38 of debt as follows: When such election is
held prior to August in any year,
39 the resolution or ordinance shall provide
that no such tax shall be levied
40 thereon in the calendar year following the
year of such election and in
41 each year thereafter, and when such
election is held in August or there-
42 after of any year, the resolution or
ordinance shall provide that no such
43 tax shall be levied thereon in the second
calendar year following the year
3
1 of such election or in any year
thereafter. The governing body of the
2 taxing subdivision shall thereupon be
authorized to offset the loss in rev-
3 enue from the elimination of such tax
by the imposition and levying of
4 any other taxes as may be authorized
by law or by increasing its ad valorem
5 tax levy for the general fund or, in
the case of townships, for the general
6 fund or any other fund for any year
in which revenue is not received from
7 the tax on gross earnings derived
from money, notes and other evidence
8 of debt in an amount not to exceed
the amount of such tax received in
9 the year prior to elimination of such
tax. With respect to townships, the
10 increase in the amount of such ad valorem
tax authorized herein shall be
11 in addition to any aggregate levy amount
which may be fixed by any
12 existing state law or any law which may
hereafter be enacted. With respect
13 to cities and counties, any such levy shall
be exempt from the limitation
14 imposed under the provisions of K.S.A.
79-5001 to 79-5016, inclusive.
15 Notwithstanding the provisions of this
subsection to the contrary, the
16 governing body of a county, city or
township may either reimpose or
17 submit to the electors of such subdivision
a proposition to reimpose a tax
18 on gross earnings derived from money, notes
and other evidence of debt
19 in the manner and at the rate prescribed by
this section.
20 (f) On or after
January 1, 1983, upon submission of a petition which
21 is in conformance with the provisions of
article 36 of chapter 25 of the
22 Kansas Statutes Annotated, and amendments
thereto, and is signed by
23 not less than 5% of the qualified electors
of a county, city or township
24 not levying a tax under the provisions of
this act requesting the same, the
25 governing body of such taxing subdivision
shall be required to submit to
26 the electors of such taxing subdivision at
the next state general election
27 or general election held for the election
of officers of such taxing subdi-
28 vision a proposition to impose a tax
pursuant to this act in an amount not
29 exceeding the limitations prescribed in
this section. Such proposition shall
30 be in substantially the following form:
"Shall ________ (county) (city)
31 (township) impose a tax on gross earnings
derived from money, notes and
32 other evidence of debt at a rate of
________ pursuant to K.S.A. 12-
33 1,101, et seq. to reduce property
taxes?" Any such election shall be no-
34 ticed, called and conducted in the manner
prescribed by the general bond
35 law. Any election which was otherwise
conducted in accordance with the
36 provisions of this subsection but which was
held on April 5, 1983, on any
37 proposition which is submitted to the
electors of a township by the gov-
38 erning body of such township pursuant to a
petition submitted under this
39 subsection is hereby declared valid. If a
majority of the electors voting
40 thereon at such election vote in favor of
the proposition the board of
41 county commissioners or the township board
shall provide by resolution
42 or the governing body of any city shall
provide by ordinance for the im-
43 position of such taxes in the manner
prescribed by this act. Such taxes
4
1 shall be effective for all taxable
years commencing after December 31 of
2 the year in which such proposition is
approved by the electors of the
3 taxing subdivision.
4 (g) For
purposes of submitting a petition or voting at an election held
5 pursuant to the provisions of this
section, electors of a township shall not
6 include any person residing within
the corporate limits of a city of the
7 third class.
8 Sec.
2. K.S.A. 12-1,104 is hereby amended to read as follows:
12-
9 1,104. (a) Every taxpayer receiving
earnings which are taxable under the
10 provisions of this act shall file a return
on or before July 1 in the year
11 1983, April 15 of each
year with the county clerk of the county in which
12 the gross earnings has acquired situs
and on or before April 15 of each
13 year thereafter with the director
of taxation of the state department of
14 revenue. Such return shall
contain such information and be made upon
15 forms prescribed and provided by the
director of taxation county clerk.
16 On or before June 30 of each year,
the director of taxation shall certify
17 to the county clerk of each county
the amount of taxable earnings received
18 by each taxpayer during the taxable
year of the taxpayer ending in the
19 preceding calendar year.
The county clerk shall compute the tax due and
20 payable on such taxable earnings of each
taxpayer and shall certify such
21 amount to the county treasurer. The
director of taxation shall include
22 forms for the making of such return
and a current listing of each taxing
23 subdivision imposing a tax on gross
earnings derived from money, notes
24 and other evidence of debt for
which the listing has been received pur-
25 suant to subsection (d) of K.S.A.
12-1,101 by July 15 of the year preceding
26 the year of imposition of the tax
with each state income tax return dis-
27 tributed by the state department of
revenue.
28 (b) A return
listing the gross earnings of every resident conservatee
29 which are taxable pursuant to this act
shall be filed by the conservator of
30 such conservatee. The return of every
resident minor shall be filed by the
31 minor's father, if living and of sound
mind, but if such father is not living
32 or is an incapacitated person, by the
minor's mother or if neither the
33 father or mother is living, by the person
having possession or control of
34 the minor's property.
35 A return listing the
gross earnings of a resident trustee or cotrustee of
36 a revocable trust created by a resident
settlor which are taxable pursuant
37 to this act shall be filed by the resident
settlor. A return listing the gross
38 earnings of a resident trustee or cotrustee
of an irrevocable or testamen-
39 tary trust created by a resident settlor or
a resident decedent which are
40 taxable pursuant to this act shall be filed
by any beneficiary residing in
41 this state who receives earnings from such
trust, to the extent of such
42 earnings, otherwise a return listing such
gross earnings shall be filed by
43 the resident trustee to the extent that
such earnings are not distributed.
5
1 A nonresident beneficiary shall not
be obligated to file a return listing
2 earnings taxable pursuant to this act
nor shall the trustee be obligated to
3 file a return listing the same to the
extent they were distributed to a
4 nonresident beneficiary. Where a
resident trustee or cotrustee is acting
5 under a revocable, irrevocable or
testamentary trust of a nonresident set-
6 tlor or nonresident decedent, the
trustee shall not be required to file a
7 return listing earnings taxable
pursuant to this act, but any beneficiary of
8 such trust, residing in this state,
who receives or is entitled to receive
9 such earnings from such trust shall
be required to file a return. Any res-
10 ident of this state including the settlor
of a revocable trust who receives
11 or is entitled to receive earnings taxable
pursuant to this act from a trust,
12 not having a situs in this state, shall
file a return listing such resident's
13 share of such earnings.
14 For the purposes of
this act, a settlor of a revocable trust shall be
15 deemed to be entitled to the gross earnings
on money, notes and other
16 evidence of debt of such trust whether or
not such settlor actually receives
17 the same and a beneficiary shall be deemed
to be entitled to a share of
18 such earnings if all or a specific part or
percentage of the net income of
19 the trust must be distributed to such
beneficiary or if the beneficiary may
20 withdraw all or a specific part of the net
income. If such beneficiary may
21 receive earnings only on the exercise of
discretion by the trustee or on
22 the occurrence of an event outside of the
beneficiary's sole control such
23 beneficiary shall not be deemed to have
received the earnings and shall
24 file a return listing only earnings
actually received. If earnings of a trust
25 which are taxable pursuant to this act are
accumulated and subsequently
26 distributed in a different calendar year
than the year in which received
27 by the trust and if the same are reported
as income under the revenue
28 laws of Kansas and regulations promulgated
thereunder, and if a return
29 listing such earnings has not been filed by
the trustees in the year in
30 which earned, then a return listing such
earnings shall be filed by such
31 beneficiary in the year in which the same
are reported under the revenue
32 laws of Kansas, but otherwise a return
listing the same shall not be filed.
33 Where the beneficiary of any trust is
required to file a return listing
34 earnings which are taxable pursuant to this
act and which are held in
35 trust, such beneficiary for purposes of
this act shall be deemed to have
36 received or to be entitled to receive such
beneficiary's pro rata share of
37 the earnings without specific allocation,
unless the trust provides other-
38 wise, and based upon the proportion which
the beneficiary's share of the
39 earnings bears to the total earnings of the
trust. A return listing gross
40 earnings taxable under this act which
belong to the estate of a resident
41 decedent shall be filed by the executor or
administrator. If the decedent
42 is a nonresident, such executor or
administrator shall not be required to
43 file a return listing such gross
earnings.
6
1 A return listing
the gross earnings of persons, companies or corpora-
2 tions which are taxable pursuant to
this act, whose assets are in the hands
3 of receivers shall be filed by such
receivers and a return listing the gross
4 earnings belonging to a corporation,
and subject to this act, shall be filed
5 by some person designated for that
purpose by such corporation.
6 A return listing
the gross earnings which are taxable pursuant to this
7 act which belong to a corporation,
association or a partnership shall be
8 listed by an agent or partner. Unless
subject to tax by reason of K.S.A.
9 12-1,103 no return listing the gross
earnings from money, notes and other
10 evidence of debt collected or received by
any agent or representative of
11 any person, company, or corporation, which
is to be transmitted imme-
12 diately to such person, company or
corporation, shall be filed by such
13 agent or representative, but such agent or
representative shall, upon re-
14 quest, state under oath the amount of such
money or credits and to whom
15 the same has been or is to be
transmitted.
16 Taxes levied pursuant
to this act shall be paid by the person or fiduciary
17 required to file such return.
18 Sec. 3. K.S.A. 12-1,101 and
12-1,104 are hereby repealed.
19 Sec. 4. This act shall
take effect and be in force from and after its
20 publication in the statute book.