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Minutes for HB2794 - Committee on Taxation
Short Title
Treatment of certain foreign income for Kansas income tax purposes.
Minutes Content for Tue, Apr 3, 2018
Mr. Wells provided an overview on HB2794 stating the bill concerns the topic of Repatriation and GUIL TI income. Under the provision of the bill it will be amending the addition and subtraction modification statutes for individuals and corporations in that 20 percent of taxable income after allowable federal deductions would flow thru and be taxed in Kansas. Mr. Wells stood for questions from the Committee.
In response to a question, Michael Hale, Department of Revenue noted many states are taxing at 20% which our statutes currently do. Some states are disallowing the deduction in their entirety. Kansas allows 100 percent deduction for the gross-up and taxing only 20 percent of the revenue in which 7 percent tax is applied.
Eric Stafford, Kansas Chamber testified as neutral to HB2794 noting the bill addresses two provisions under the Tax Cuts and Jobs Act passed by Congress in December (Attachment 2). Mr. Stafford presented suggested language to ensure simplicity and conformity for taxpayers, instead of the language included in HB2794. Mr. Stafford stood for questions from the Committee.
Hearing closed on HB2794.
