United States

Kansas: Governor Brownback Signs Bills Making Multiple Tax Changes

Jun 22, 2015
From KPMG TaxWatch

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On June 16, 2015, Kansas Governor Sam Brownback signed two bills—S.B. 270 and H.B. 2109—that make numerous tax changes. Effective July 1, 2015, the sales and use tax rate is increased from 6.15 percent to 6.5 percent. For individual income tax purposes, planned tax rate reductions have been delayed. Additionally, effective for tax years beginning on or after January 1, 2015, the bills eliminate most itemized deductions for individuals. Finally, the bills establish a tax amnesty program with an amnesty period to run from September 1, 2015 to October 15, 2015. The program will provide amnesty from the assessment or payment of all penalties and interest with respect to eligible unpaid taxes or eligible taxes due and owing for the tax years covered by the amnesty. The taxes eligible for amnesty include the privilege tax imposed on financial institutions, the estate tax (prior to its repeal), income taxes, withholding taxes and estimated taxes, cigarette and tobacco products taxes, state and local sales and use taxes, liquor enforcement taxes, liquor drink taxes, and mineral severance taxes. Only tax liabilities due and unpaid for tax years ending on or before December 31, 2013 can be satisfied during the program. Taxpayers that, on or after September 1, 2015, are under audit or have a pending administrative appeal following an assessment cannot take advantage of the amnesty. Participating in the amnesty program constitutes an express and absolute relinquishment of all administrative and judicial rights of appeal of the subject tax liability and no tax payment received pursuant to the amnesty program is eligible for refund or credit. For more information about S.B. 270 and H.B. 2109, please contact Guy Creveling at 404-222-3349 or Derek Love at 816-802-5220.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.