RON THORNBURGH
Secretary of State
image of the Kansas Secretary of State seal
STATE OF KANSAS
Memorial Hall, 1st Floor
120 SW 10th Avenue
Topeka, KS 66612-1594
(785) 296-4564
www.kssos.org

CHANGES IN THE FRANCHISE TAX LAW
A new law, Chapter 171 of the 2004 Session Laws, affects the way business entities pay franchise taxes and fees in Kansas.

In the past franchise taxes and fees were paid to the Secretary of State at the time of filing the annual report. The new law requires that franchise taxes are paid with tax form K-150 to the Department of Revenue, and franchise fees are paid with the annual report to the Secretary of State.

Please note that you may file your annual report under the old law or the new law, depending on the tax year end month and year of business for which you are filing.

Old Law Continues to Cover New Law Covers
Tax year end Nov 30, 2004, and previous
(Tax year beginning prior to January 1, 2004)

•Pay tax and fee to Secretary of State

•Tax amount is $2 per $1000 net worth
Use the Franchise Tax Computation Worksheet

•Fee amount is
$55 for-profits
$40 non-profits

•Pay both tax and fee to SOS and submit with annual report form.

•Due date for tax and fee:
15th day of the fourth month following the tax year end

File franchise tax and fee online

Use new annual report forms for all filings, even if you are filing under the old franchise tax law.

Tax year end Dec 31, 2004, and after
(Tax year beginning on or after January 1, 2004)

•Pay tax to Department of Revenue and fee to Secretary of State

•Tax amount is $1.25 per $1000 of net worth for business entities with $100,000 or more of net worth. Maximum tax amount is $20,000

•Pay tax to Department of Revenue with form K-150. Visit www.ksrevenue.org/franchisetax.htm for more information or to file tax online starting February 2005. Penalties and interest will be applied by the Department of Revenue for late filings.

•Due date for tax:
15th day of the fourth month following the tax year end

•Fee amount is:
$55 for-profits
$40 non-profits

•Pay fee to SOS with annual report form.
Business will be forfeited if complete and correct filing is not received by SOS before the forfeiture date.

•Due date for fee:
15th day of the fourth month following the tax year end

•Forfeiture date for fee:
Three months after the due date. (e.g. July 15, 2005, for filings due April 15, 2005)

File franchise fee online

Use new annual report forms for all paper filings.

Do not file or pay franchise fee with Department of Revenue. Doing so will result in forfeiture of the business entity.

Please contact our Customer Service Center (785) 296-4564 if you have questions about the franchise tax and fee law.

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