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New State Income Tax Rules

As the end of the 2011 rapidly approaches, the Kansas Department of Revenue has begun posting information concerning the changes in state income tax laws that take effect January 1st.

The state of Kansas has sent out mailers to 160,000 businesses to inform them about the new tax law and how it applies to them. State Revenue Department Spokesperson Jeannine Koranda said, “The reason for that is that they are the ones who really have to take action before January 1st.” Adding, “…such as changing how the business is organized for tax purposes.”

As for the rest of us, Koranda said, “Most people won’t have to deal with the new law before next year when we send out the tax forms.”

The state will reduce individual tax rates, drop the tax rate to 4.9% from 6.45% and increase the standard deductions claimed by married couples and heads-of-household. The state will also exempt the owners of 191,000 partnerships, sole partnerships and other businesses from taxes.

In real cash back, the Revenue Department estimates that a married head-of-household tax filer earning $52,000 a year should see about $12.00 more in a bi-weekly paycheck.

Legislative researchers have estimated that the cuts will be worth $4.5-billion over the next 6-years. The researchers also project that the cuts will create collective budget shortfalls approaching $2.5-billion during the same period of time.

About Mike Schrant

Mike is one of those guys who has spent nearly a lifetime trying to figure out what he wants to do when he grows up. He has split time as a broadcaster and educator having first worked in radio in the early 1970’s while attending junior college. The two careers are directly connected because many of the 25 years as an educator were spent teaching broadcast journalism at the high school and college levels. Mike is married and has three adult children (no grandchildren yet) and enjoys sports, debating politics, gardening, landscaping-hauling rocks, and swapping stories with the "good old boys".