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.