Session of 1998
                   
HOUSE BILL No. 2708
         
By Committee on Taxation
         
1-23
            9             AN ACT enacting the income tax relief act of 1998; amending K.S.A. 79-
10             32,110, 79-32,119 and 79-32,121 and repealing the existing sections.
11            
12       Be it enacted by the Legislature of the State of Kansas:
13           Section 1. K.S.A. 79-32,110 is hereby amended to read as follows:
14       79-32,110. (a) Resident Individuals. Except as otherwise provided by sub-
15       section (a) of K.S.A. 79-3220, and amendments thereto, a tax is hereby
16       imposed upon the Kansas taxable income of every resident individual,
17       which tax shall be computed in accordance with the following tax sched-
18       ules:
19           (1) Married individuals filing joint returns.
20       If the taxable income is:
 The tax is:
21       Not over $30,000
 3.5% of Kansas taxable income
22       Over $30,000 but not over $60,000
 $1,050 plus 6.25% of excess over $30,000
23       Over $60,000
 $2,925 plus 6.45% of excess over $60,000
24           (2) All other individuals.
25       (A) For tax year 1997:
26       If the taxable income is:
 The tax is:
27       Not over $20,000
 4.1% of Kansas taxable income
28       Over $20,000 but not over $30,000
 $820 plus 7.5% of excess over $20,000
29       Over $30,000
 $1,570 plus 7.75% of excess over $30,000
30       (B) For tax year 1998, and all tax years thereafter:
31       If the taxable income is:
 The tax is:
32       Not over $15,000
 3.5% of Kansas taxable income
33       Over $15,000 but not over $30,000
 $525 plus 6.75% of excess over $15,000
34       Over $30,000
 $1,537.50 plus 7.75% of excess over $30,000
35       (C) For tax year 1999:
36       If the taxable income is:
 The tax is:
37       Not over $15,000
 3.5% of Kansas taxable income
38       Over $15,000 but not over $30,000
 $525 plus 6.25% of excess over $15,000
39      
40		 Over $30,000
 $1,462.50 plus 7.45% of excess over $30,000
41       (D) For tax year 2000, and all tax years thereafter:
42       If the taxable income is:
 The tax is:
43       Not over $15,000
 3.5% of Kansas taxable income
44       Over $15,000 but not over $30,000
 $525 plus 6.25% of excess over $15,000

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1       Over $30,000
 $1,462.50 plus 6.45% of excess over $30,000
  2           (b) Nonresident Individuals. A tax is hereby imposed upon the Kansas
  3       taxable income of every nonresident individual, which tax shall be an
  4       amount equal to the tax computed under subsection (a) as if the nonres-
  5       ident were a resident multiplied by the ratio of modified Kansas source
  6       income to Kansas adjusted gross income.
  7           (c) Corporations. A tax is hereby imposed upon the Kansas taxable
  8       income of every corporation doing business within this state or deriving
  9       income from sources within this state. Such tax shall consist of a normal
10       tax and a surtax and shall be computed as follows:
11           (1) The normal tax shall be in an amount equal to 4% of the Kansas
12       taxable income of such corporation; and
13           (2) the surtax shall be in an amount equal to 3.35% of the Kansas
14       taxable income of such corporation in excess of $50,000.
15           (d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable
16       income of estates and trusts at the rates provided in paragraph (2) of
17       subsection (a) hereof.
18           Sec. 2. K.S.A. 79-32,119 is hereby amended to read as follows: 79-
19       32,119. The Kansas standard deduction of an individual, including a hus-
20       band and wife who are either both residents or who file a joint return as
21       if both were residents, shall be equal to the sum of the standard deduction
22       amount allowed pursuant to this section, and the additional standard de-
23       duction amount allowed pursuant to this section for each such deduction
24       allowable to such individual or to such husband and wife under the federal
25       internal revenue code as in effect for tax year 1988. For tax year 1998,
26       and all tax years thereafter, the standard deduction amount shall be as
27       follows: Single individual filing status, $3,200; married filing status,
28       $5,600; and head of household filing status, $4,800. For tax year 1998
29       and all tax years thereafter, the additional standard deduction amount
30       shall be as follows: Single individual and head of household filing status,
31       $850; and married filing status, $700. For purposes of the foregoing, the
32       federal standard deduction allowable to a husband and wife filing separate
33       Kansas income tax returns shall be determined on the basis that separate
34       federal returns were filed, and the federal standard deduction of a hus-
35       band and wife filing a joint Kansas income tax return shall be determined
36       on the basis that a joint federal income tax return was filed.
37           Sec. 3. K.S.A. 79-32,121 is hereby amended to read as follows: 79-
38       32,121. (a) An individual shall be allowed a Kansas exemption of $1,950
39       for tax year 1988, and $2,000 for each tax year thereafter $2,100 for tax
40       year 1998, and tax years thereafter for each exemption for which such
41       individual is entitled to a deduction for the taxable year for federal income
42       tax purposes. In addition to the exemptions authorized in the foregoing
43       provision, an individual filing a federal income tax return under the status

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  1       of head of household, as the same is defined by 26 U.S.C. 2(b), shall be
  2       allowed an additional Kansas exemption of $1,950 for tax year 1988, and
  3       $2,000 for each tax year thereafter $2,100 for tax year 1998, and all tax
  4       years thereafter.
  5           (b) For tax year 1987, there shall be allowed as a credit against the
  6       tax liability of a resident individual imposed under the Kansas income tax
  7       act who except for the operation of the provisions of K.S.A. 79-32,121
  8       resulting from amendments to the federal internal revenue code would
  9       have been allowed an additional exemption for blindness or age or both
10       pursuant to such section in tax year 1987, an amount equal to $60 for
11       each such exemption. The total amount of such credits shall not exceed
12       the amount of tax imposed by K.S.A. 79-32,110, and amendments thereto,
13       reduced by the sum of any other credits allowable pursuant to law.
14           New Sec. 4. (a) There shall be allowed as a credit against the tax
15       liability of a resident individual imposed under the Kansas income tax act
16       an amount equal to 10% for tax year 1998, and all tax years thereafter, of
17       the amount of the earned income credit allowed against such taxpayer's
18       federal income tax liability pursuant to section 32 of the federal internal
19       revenue code for the taxable year in which such credit was claimed against
20       the taxpayer's federal income tax liability.
21           (b) If the amount of the credit allowed by subsection (a) exceeds the
22       taxpayer's income tax liability imposed under the Kansas income tax act,
23       such excess amount shall be refunded to the taxpayer.
24           (c) The provisions of this section shall be applicable to all taxable
25       years commencing after December 31, 1997.
26           Sec. 5. K.S.A. 79-32,110, 79-32,119 and 79-32,121 are hereby re-
27       pealed.
28           Sec. 6. This act shall take effect and be in force from and after its
29       publication in the statute book.
30