Kansas Governor Sam Brownback recently signed one of the largest tax relief measures in Kansas history. At the heart of the tax changes is a reduction of individual tax rates and a shift from a three-bracket to a two-bracket system.
For tax years beginning January 1, 2013, instead of individual taxpayer rates of 3.5, 6.25 and 6.45 percent, rates will reduce to 3.0 and 4.9 percent. Corporate tax rates will remain unchanged.
The bill also provides an exemption which eliminates certain non-wage business income and/or losses reported by LLCs, partnerships, S Corporations and sole proprietorships from Kansas individual taxable income.
Other changes include increases to the standard deduction for head-of-household from $4,500 to $9,000, and for married taxpayers filing jointly from $6,000 to $9,000.
Certain tax credits will be repealed such as the food sales tax rebate and the child and the dependent care credit.
To view the full text of the bill, please click here.
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