Kansas Administrative Code

Extension of time for filing re- turns. A six-month extension of time to file shall be granted by the director of taxation if at least 90% of the current year’s tax liability is paid or 100% of the prior year’s tax liability is paid. An extension of time to file shall not constit…

(Authorized by K.S.A. 79-3236; implementing K.S.A. 79-3222; effective Jan. 1, 1968; amended Jan. 1, 1974; amended May 1, 1982; revoked May 10, 2002.)

(Authorized by K.S.A. 79-3236, K.S.A. 1979 Supp. 79-3220; effective Jan. 1, 1968; amended Jan. 1, 1970; amended, E-71-8, Jan. 1, 1971; amended Jan. 1, 1972; revoked, L. 1980, ch. 344, May 1, 1980.)

(Authorized by K.S.A. 79-3236; ef- fective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-32,117a, 79-32,117b; effective Jan. 1, 1974; revoked May 1, 1982.)

Business and nonbusiness in- come defined. In essence, all income which arises from the conduct of trade or business op- erations of a taxpayer is business income. For ad- ministrative purposes, the income of the taxpayer is business income unless clearly classifiable as nonbusin…

Two or more businesses of a single taxpayer. A taxpayer may have more than one (1) “trade or business.” In such cases, it is necessary to determine the business income at- tributable to each separate trade or business. The income of each business is then apportioned by an apporti…

Business and nonbusiness in- come: application of definitions. The following are rules for determining whether particular in- come is business or nonbusiness income. (a) Rent- al income from real and tangible property is busi- ness income if the property with respect to which the…

Proration of deductions. In most cases an allowable deduction of a taxpayer will be applicable only to the business income arising from a particular trade or business or to a particular item of nonbusiness income. In some cases an allowable deduction may be applicable to the busi…

Definitions. (a) Apportionment means the division of business income between states by the use of a formula containing appor- tionment factors. (b) Allocation means the assignment of non- business income to a particular state. (c) Business activity means the transactions and acti…

Apportionment. If the business activity in respect to any trade or business of a tax- payer occurs both within and without this state, and if by reason of such business activity the tax- payer is taxable in another state, the portion of the net income (or net loss) arising from s…

Combined income method of reporting. If a particular trade or business is car- 659 Income Tax 92-12-82 ried on by a taxpayer and one (1) or more affil- iated corporations, nothing in K.S.A. 79-3271 et seq., and 79-4301, article IV or in these regula- tions shall preclude the use …

Allocation. Any taxpayer subject to the taxing jurisdiction of this state shall allo- cate all of its nonbusiness income or loss within or without this state in accordance with K.S.A. 79- 3275 through 79-3278. (Authorized by K.S.A. 79- 3236, 79-3272, 79-4301; effective May 1, 197…

Consistency and uniformity in reporting. In filing returns with this state, if the taxpayer departs from or modifies the manner in which income has been classified as business in- come or nonbusiness income in returns for prior years, the taxpayer shall disclose in the return for…

Corporation. The term “corpo- ration” as used in these regulations includes not only corporations which have been created or or- ganized under the laws of Kansas, but also every corporation doing business within this state or deriving income from sources within this state, in a c…

Taxableinanotherstate;ingen- eral. The taxpayer is subject to the allocation and apportionment if it has income from business activ- ity that is taxable both within and without this state. Ataxpayer’sincomefrombusinessactivityistaxable without this state if such taxpayer, by reas…

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 …

Application: contents. All appli- cations for an interstate motor fuel user license shall be on forms furnished by the director and shall contain information as follows: (a) The name and address of the applicant. (b) The principal office or place of business of the applicant. (c)…

Bond requirements. The direc- tor of taxation may require any person making ap- plication for an interstate motor fuel users license in the state of Kansas to file a bond with the di- rector when: (1) the licensee has failed to file timely a quar- terly report; (2) the correct am…

Presumption, evidence. In the absence of records or other information showing the number of miles actually traveled per gallon of fuel, it shall be presumed that one gallon of motor vehicle fuel was consumed for every three miles traveled; that one gallon of special fuel was con-…

Record requirements; pre- sumption. (a) Each interstate motor fuel user shall maintain detailed records for each trip for a minimum of three years. The records shall be summarized monthly and include miles traveled and fuel purchased over the road for each vehicle. These records …

Interstate motor fuel user li- cense. Upon investigation by the director, if the statements contained in the application shall be found to be true, and if the director shall be sat- isfied that the application is made in good faith, he shall issue to said applicant an interstate …

Enforcement. The director may at any time, upon showing of failure to comply with the provisions of the motor fuels tax laws of the state of Kansas or rules and regulations promul- gated thereunder, or of the motor carrier inspec- tion bureau relating to motor carriers, suspend o…

Identification cards. It shall be the duty of all interstate motor fuel users and driv- ers of motor vehicles registered under an inter- state motor fuel user license to carry at all times on every vehicle used an identification fuel card issued by the director identifying the li…

Revocation or abandonment of license, authorization or permit. (1) Whenev- er operations are abandoned under any interstate motor fuel user license, or upon revocation there- of by the director, the license and all identification fuel cards issued thereunder shall be immediately …

Credits and refunds on fuel pur- chased within Kansas. All applications for refund shall be made on forms prescribed by the director and shall contain satisfactory and sufficient infor- mationtoestablishtherighttosuchrefund.(Autho- rized by K.S.A. 1971 Supp. 79-34,123, 79-34,112;…

Sales invoices and records. Ev- ery interstate motor fuel user registered under this act shall be required to retain for three years sales invoices and other records reflecting purchases of fuels both within and without the state of Kansas unless destruction is authorized by the …

Exempt operations. Every person hauling campers, trailers or personal automobiles for nonbusiness purposes shall be exempt from the provisions of this act. (Authorized by K.S.A. 1971 Supp. 79-34,123; effective Jan. 1, 1966; amended Jan. 1, 1972.)

Motor fuel permits and emer- gency authorization. (a) Both 24-hour and 72- hour motor fuel permits shall be issued on forms prescribed by the director. Any interstate motor fuel user may request not more than three motor fuel permits for each commercial motor vehicle identificati…

(Authorized by K.S.A. 79-3492, 79- 34,102; effective Jan. 1, 1966; revoked, E-73-20, July 1, 1973; revoked Jan. 1, 1974.)

(Authorized by K.S.A. 79-3495, 79- 34,102; effective Jan. 1, 1966; revoked, E-73-20, July 1, 1973; revoked Jan. 1, 1974.)

(Authorized by K.S.A. 79-3493, 79- 34,102; effective Jan. 1, 1966; revoked, E-73-20, July 1, 1973; revoked Jan. 1, 1974.)