Tax Advantages
Kansas and Labette County have tax structures and tax incentives that are attractive to business partners:
State Taxes:
- Corporate Income Taxes- 4% of net income. Income in excess of $50,000 is subject to 3.35% surtax.
- Corporate Franchise Tax- In 2007 the Kansas Legislature passed legislation that phases out franchise taxes over five years. 2007 exemption is $1.0 million and increases over the next four years until it is eliminated.
- There are NO gross receipts taxes in Kansas.
- Business Utility Taxes- General uses utilities are taxed at 5.3%; however the state has several exemptions for utilities used in production. The exemptions apply to gas, electricity and water.
- Personal Income Tax:
- Individual: 3.5% for the first $15,000, $525 plus 6.25% of income over $15,000 up to $30,000, $1,462 plus 6.45% of income over $30,000.
- Joint: 3.5% for first $30,000, then $1,050 for first $30,000 plus 6.25% up to $60,000; then $2,924 plus 6.45% of income over $60,000.
- Kansas does not tax military or military retired pay.
- Sales and Use Tax- 5.3%
- All Manufacturing machinery and equipment are exempt from sales tax.
- Kansas Offers a Biodiesel tax REBATE incentive of 30 cents per gallon produced through July 1, 2016.
- Kansas also offers Ethyl Alcohol Incentive of 7.5 cents for each gallon sold to a blending plant after the first 5 million for the next 15 million gallons sold.
- Alternative Fuel Vehicles (AFV) Tax Credit includes vehicles that operate on compressed natural gas, 85% ethanol blend, liquefied petroleum gas and electric vehicles. The credit is up to 40% of the cost of conversion or:
- Less than 10,000 # GVWR a credit up to $2,400
- 10,000 to 26,000 # GVWR a credit up to $4,000
- Over 26,000 # GVWR a credit up to $40,000
- For OEM AFV’s a tax credit of the lesser of $750 or 5% of purchase price.
- All are for the year the expenditures were made and you must provide evidence of the purchase of 500 gallons of E85.
There are other Kansas State Tax Incentives that should be explored by your tax department.
Local Labette County Taxes:
- No Personal Property Taxes on Production Machinery and Equipment.
- Sales and Use Tax 2.25% Total for City and County.
- No Personal Income Tax.
- No Wage or Commuter Taxes
County Tax Abatement will be available depending on number and wage level of jobs created.