The $1.2 billion tax increase approved by the Kansas legislature will
impact almost every working Kansan, so it’s important to understand
exactly what the new law does.
This tax increase is the largest in state history, and it pays for
the largest budget in state history. Almost every taxpayer in our
state will see their paycheck decrease after July 1.
If you work for someone other than yourself, your employer will use
new withholding tables to calculate how much additional money to take
from your paycheck to pay your larger tax liability. Because the tax
law is retroactive to January 1, you now owe more taxes on what
you’ve earned so far this year. The amount withheld going forward
is intended to catch you up so that you don’t end up owing a huge
amount come April 2018. Additionally, I recommend talking to your tax
preparer to ensure the additional money withheld is sufficient to
address the increased amount you owe under the legislature’s new
law.
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| Sam Williams, Kansas Secretary of Revenue, official photo |
Small business job creators will also experience a sizable tax hike.
Small businesses were previously exempt from paying income taxes to
drive job creation and economic growth in Kansas. The new law imposes
the same rates on small businesses that are imposed on individual
taxpayers in the new three bracket structure. To see those rates
specifically, please visit our website, ksrevenue.org.
Governor Brownback’s previous tax plan eliminated income taxes for
nearly 400,000 of the poorest Kansans. The legislature’s new tax
hike raises money by shrinking this exemption. This means if you are
a single filer with $2,500 taxable income per year or a married
couple making $5,000 taxable income, then you will be subject to
income tax.
There is further information about the tax changes on our website,
ksrevenue.org and search
“notices.”
This largest tax increase in state history funds the largest budget
in state history. The legislature’s budget funds more than $200
million in new spending—that is spending above the increased
funding for schools. Despite the legislature’s historic $1.2
billion tax hike, they’ve already spent every dime. Unless
cuts and efficiencies are made, the legislature will be looking at
more taxes in two years.
Regardless, it is our job at the Department of Revenue to ensure
collections abide with the law. We will continue to strive to serve
our customers with accuracy and respect. As always, filing
electronically at ksrevenue.org
is the fastest and most simple route. There is also a Taxpayer
Assistance Center available to answer questions. Call (785) 368-8222.
