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In Kansas, owners of cars, trucks and
motorcycles are required to pay annual personal
property taxes based on the make, model and age
of the vehicle. The county appraiser’s office,
(316) 660-9250, will give you an estimate of the
personal property tax for a vehicle. When you
call, have the vehicle’s identification number. |
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State Personal Income Tax
The Kansas tax laws generally conform
to federal laws, but there are some variances.
The important figure to consider is the Kansas
Adjusted Gross Income, a number to be arrived at
after all deductions, exemptions and credits are
taken on both federal and state returns.
The state tax brackets are: Married, filing
jointly - $0 - $30,000, 3.50%. Maximum
tax in this bracket, $1,050. $30,001 - $60,000,
$1,050 plus 6.25% of the amount over
$30,000. Maximum tax in this bracket, $2,925.
$60,001+, $2,925 plus 6.45% of the amount
over $60,000.
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All other taxpayers: $0 - $15,000, 3.50%.
$15,001 - $30,000, $525 plus 6.25% of the amount
over $15,000. Maximum tax in this bracket, $1,462.50.
$30,001+, $1,462.50 plus 6.45% of the amount over
$30,000.
State Sales Tax
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The state sales tax is set at 5.30% of
the purchase price of each taxable item. Most
items purchased at retail are taxable, but there
are some exceptions, prescription drugs being
one. There are numerous other exemptions, few of
which are common consumer items.
In addition to the state sales tax, many
communities in the state have adopted up to a
2% local sales tax, collected by the state
government at the time of purchase. Sedgwick
County has a countywide local add-on sales tax,
making the effective tax 7.30%. Some
localities do not impose a local sales tax, and
items purchased there are taxed at the lower
state rate. For more information,
click here
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Local Property Taxes
The tax on real estate and personal property is
the chief revenue producer for local units of
government. The tax is assessed on a percentage of the
fair market value of the property involved.
A mill levy (one mill equals 1/1000th of a dollar)
is then applied to arrive at the dollar amount of the
tax. Property values and mill levies vary widely, but
here is a typical example:
Assuming a house in Wichita with an appraised
market value of $150,000
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$150,000 |
Appraised Value |
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x 0.115 |
Multiplied by the residential assessment
rate of 11.5% |
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$17,250 |
Assessed Value (tax base) |
17.25 x 113.960 (total mill levy in most
areas in 2002) equals $1,965.81, the annual
property tax on the house in this example.
In many areas, special tax assessments for streets,
sidewalks, sewer systems, water systems and other
improvements are also levied. Those mill levies would be
added to the basic tax bill, but usually do not increase
the amount to any significant extent.
Other Taxes
The third largest source of income to the state
of Kansas, after personal income and retail sales taxes,
is the corporate income tax. Like the state personal
income tax, the income tax on corporations is computed
on the basis of the adjusted gross state income.
Adjusted gross state income is levied a tax of 4.00% of
the first $50,000 and a surtax of 3.35% in excess of
that amount. For more information on Kansas taxes, visit
the Kansas Department of Revenue online at
www.ksrevenue.org/index.htm. Other state taxes
include:
- Business Machinery and Equipment: exempt from
sales tax.
- Business Inventories: exempt from property tax.
- Compensating Use Tax: like the sales tax, but
charged to Kansans who buy products out of state -
5.3%
- Corporate Franchise Tax: $1.25 per $1,000
annually of shareholder’s equity attributable to
Kansas, plus $15 (minimum is $55, maximum is $5,015)
- Financial Institutions Tax: levied against
banks, savings and loans and other financial
organizations on net income - 6.375% for
banks, 6.75% for others.
- Insurance Premium Tax: varying rates according
to policy and company type.
- Liquor and Beer Taxes: charged at the wholesale
level on a per-gallon basis - rates vary.
- Retail Liquor Tax: 10% charged per drink
in clubs, bars and taverns.
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