ALERT: Kansas Legislature set to roll back 2012 tax cuts
February 17, 2017
The Kansas Senate and House have approved and sent legislation to Governor Sam Brownback that would increase taxes for individuals. This tax legislation is designed to address the state’s financial shortfall. Governor Brownback is said to oppose the legislation, however, we do not know what action he will take.
The legislation contains three primary initiatives which are retroactive to January 1, 2017:
- A complete repeal of the non-wage business income exemption that had eliminated state income tax on income from sole proprietorships, farming and rental activities and pass-through entities such as partnerships, LLCs and S corporations
- An increase in the individual state income tax rates to a new top rate of 5.45% from a current top rate of 4.6%
- An addition to individual itemized deductions to include 100% of federal deductible medical expenses
The legislation passed the Kansas House on Thursday and the Kansas Senate on Friday. The bill now goes to Governor Brownback, who has 10 days in which to sign or veto it. If he takes no action, the bill becomes law without his signature.
To get a clearer picture of how these changes may affect you, please contact your AGH tax professional, or AGH tax senior vice president Shawn Sullivan using the information below.
Senior Vice President
Shawn serves as one of two primary leaders in the firm’s large tax group. He has extensive public and private experience in the fields of tax and accounting and works frequently with clients in the manufacturing, wholesale/retail distribution, real estate development and management, construction, and contractor industries. In addition to enhancing business performance to minimize tax consequences, he has experience in mergers and acquisitions and international tax and business structuring.
A certified public accountant, Shawn is a member of the American Institute of Certified Public Accountants, the Kansas Society of Certified Public Accountants (KSCPA) and chairs the KSCPA Committee on Taxation.
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NOTE: Any advice contained in this material is not intended or written to be tax advice, and cannot be relied upon as such, nor can it be used for the purpose of avoiding tax penalties that may be imposed by the IRS or states, or promoting, marketing or recommending to another party any transaction or matter addressed herein.