Agency 92, Article 12 — INCOME TAX

Taxable in another state; when a corporation is “subject to” a tax un- der K.S.A. 79-3273(1) and 79-4301, article IV.3.(1). A taxpayer is “subject to” one (1) of the taxes, specified in K.S.A. 79-3273(1) and 79-4301, article IV.3.(1) if it carries on business activities in such s…

Taxable in another state; when a state has jurisdiction to subject a taxpay- er to a net income tax. The second test, that of K.S.A. 79-3273(2) and 79-4301, article IV.3.(2), 660 DEPARTMENT OF REVENUE 92-12-83 applies if the taxpayer’s business activity is suffi- cient to give th…

Apportionment formula. All business income of each trade or business of the taxpayer shall be apportioned to this state by use of the apportionment formula set forth in K.S.A. 79-3279 and 79-4301, article IV.9. The elements of the apportionment formula are the property factor, th…

Property factor; in general. The property factor of the apportionment formu- la for each trade or business of the taxpayer shall include all real and tangible personal property owned or rented by the taxpayer and used during the tax period in the regular course of such trade or b…

Property factor; property used for the production of business income. Prop- erty shall be included in the property factor if it is actually used or is available for or capable of being used during the tax period in the regular course of the trade or business of the taxpayer. Prop…

Property factor; consistency in reporting. In filing returns with this state, if the taxpayer departs from or modifies the manner of valuing property, or of excluding or including property in the property factor, used in returns for prior years, the taxpayer shall disclose in the…

Property factor; numerator. The numerator of the property factor shall in- 661 Income Tax 92-12-89 clude the average value of the real and tangible personal property owned or rented by the taxpay- er and used in this state during the tax period in the regular course of the trade …

Property factor; valuation of owned property. Property owned by the taxpay- er shall be valued at its original cost. As a gener- al rule “original cost” is deemed to be the basis of the property for federal income tax purposes (prior to any federal adjustments) at the time of acq…

Property factor; valuation of rented property. Property rented by the taxpayer isvaluedateight(8)timesitsnetannualrentalrate. The net annual rental rate for any item of rented property is the annual rental rate paid by the tax- payer for such property, less the aggregate annual s…

Property factor; averaging property values. As a general rule the average value of property owned by the taxpayer shall be determined by averaging the values at the begin- ning and ending of the tax period. However, the director of taxation may require or allow averag- ing by mon…

Payroll factor; in general. (a) The payroll factor of the apportionment formula for each trade or business of the taxpayer shall in- clude the total amount paid by the taxpayer in the regular course of its trade or business for compen- sation during the tax period. (b) The total …

Payroll factor; denominator. The denominator of the payroll factor is the total compensation paid everywhere during the tax pe- riod. Accordingly, compensation paid to employ- ees whose services are performed entirely in a state where the taxpayer is immune from taxation, for exa…

Payroll factor; numerator. The numerator of the payroll factor is the total amount paid in this state during the tax period by the tax- payer for compensation. The tests in K.S.A. 79- 3284 and 79-4301, article IV.14. to be applied in determining whether compensation is paid in th…

Payroll factor; compensation paid in this state. Compensation is paid in this state if any of the following tests, applied consec- utively, are met: (a) The employee’s service is per- formed entirely within in the state. (b) The employee’s service is performed both within and wit…

Sales factor; in general. For the purposes of the sales factor of the apportionment formula for each trade or business of the taxpayer, the term “sales” means all gross receipts derived by the taxpayer from transactions and activity in the regular course of such trade or business…

Sales factor; denominator. The denominator of the sales factor shall include the total gross receipts derived by the taxpayer from transactions and activity in the regular course of its trade or business, except receipts excluded un- der K.A.R. 92-12-103. (Authorized by K.S.A. 79…

Sales factor; numerator. The numerator of the sales factor shall include gross receipts attributable to this state and derived by the taxpayer from transactions and activity in the regular course of its trade or business. All interest income,servicecharges,carryingcharges,ortime-…

Sales factor; sales of tangible personal property in this state. Gross receipts from sales of tangible personal property (except sales to the United States government) are in this state: (a) If the property is delivered or shipped to a purchaser within this state regardless of th…

Sales factor; sales of tangible personal property to United States govern- ment in this state. Gross receipts from sales of tangible personal property to the United States government are in this state if the property is shipped from an office, store, warehouse, factory, or other …