Kansas Statutes 79-32,113. Exempted organizations; requirements and restrictions
Terms Used In Kansas Statutes 79-32,113
- business income: means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations, except that a taxpayer may elect that all income constitutes business income. See Kansas Statutes 79-3271
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- federal internal revenue code: shall mean the provisions of the federal internal revenue code of 1986, and amendments thereto, and other provisions of the laws of the United States relating to federal income taxes, as the same may be or become effective at any time, or from time to time, for the taxable year. See Kansas Statutes 79-32,109
- Public utility: means any business entity which owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, oil, oil products or gas. See Kansas Statutes 79-3271
- State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. See Kansas Statutes 79-3271
(a) A person or organization exempt from federal income taxation under the provisions of the federal internal revenue code shall also be exempt from the tax imposed by this act in each year in which such person or organization satisfies the requirements of the federal internal revenue code for exemption from federal income taxation. If the exemption applicable to any person or organization under the provisions of the federal internal revenue code is limited or qualified in any manner, the exemption from taxes imposed by this article shall be limited or qualified in a similar manner.
(b) Notwithstanding the provisions of subsection (a), the unrelated business taxable income, as computed under the provisions of the federal internal revenue code, of any person or organization otherwise exempt from the tax imposed by this act and subject to the tax imposed on unrelated business income by the federal internal revenue code shall be subject to the tax which would have been imposed by this act but for the provisions of subsection (a).
(c) In addition to the persons or organizations exempt from federal income taxation under the provision of the federal internal revenue code, there shall also be exempt from the tax imposed by this act, insurance companies, banks, trust companies, savings and loan associations, credit unions and any other organizations, entities or persons specifically exempt from Kansas income taxation under the laws of the state of Kansas.
(d) Notwithstanding the provisions of Kan. Stat. Ann. § 79-32,110, and amendments thereto, the following entities shall be exempt from the tax imposed by the Kansas income tax act pursuant to Kan. Stat. Ann. § 79-32,110, and amendments thereto:
(1) Any utility that is a cooperative as defined in Kan. Stat. Ann. § 66-104d, and amendments thereto, or owned by one or more such cooperatives; and
(2) effective for tax years ending on or after January 1, 2021, every electric and natural gas public utility as defined in Kan. Stat. Ann. § 66-104, and amendments thereto, that is subject to rate regulation by the state corporation commission.
(e) Every electric and natural gas public utility as defined in Kan. Stat. Ann. § 66-104, and amendments thereto, not including any such utility that is a cooperative as defined in Kan. Stat. Ann. § 66-104d, and amendments thereto, or owned by one or more such cooperatives shall:
(1) Not be permitted to be included in a consolidated or unitary combined return; and
(2) except as provided in Kan. Stat. Ann. 2023 Supp. 66-1,239, and amendments thereto, not collect, as a component of such utility’s retail rates, Kansas income tax expenses.