The Tax Foundation released the 2013 State Business Tax Climate Index, ranking Kansas 26th in the country. With significant tax relief coming into effect January 1, 2013 Kansas may finally break from the middle of the pack and be better positioned to attract and retain businesses.
| The 2013 State Business Tax Climate Index looks at state tax law as it stood on July 1, 2012. Kansas's recently passed tax reductions do not take effect until 2013 and thus were not included in the analysis. However, they will likely improve the state's score and rank in future years. ~ Joseph Henchman, Coauthor of the 2013 State Business Tax Climate Index |
The Tax Foundation report did mention Kansas’ recent tax reforms (pg 54):
| In May 2012, Kansas enacted significant tax changes that will take effect in 2013. The existing three-bracket income tax with a top rate of 6.45 percent will become a two-bracket income tax with a top rate of 4.9 percent. The standard deduction is doubled to $9,000; some itemized deductions are eliminated; and non-wage income from sole proprietors, partnerships, and S corporations is exempted from tax. These changes, on net, will improve Kansas’s score on individual income tax. |
