(a)With respect to any taxable period for which it has made the election under K.S.A. 2024 Supp. 79-32,286, and amendments thereto, an electing pass-through entity shall be subject to a tax in an amount equal to the highest rate of tax for the applicable income tax year under K.S.A. 79-32,110(a), and amendments thereto, multiplied by the sum of: (1)Each nonresident electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income attributable to the state; and
(2)each resident electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income calculated as either:
(A)The sum of income attributable to the state and income not attributable to the state; or (B) income attributable to the state. Th
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(a) With respect to any taxable period for which it has made the election under K.S.A. 2024 Supp. 79-32,286, and amendments thereto, an electing pass-through entity shall be subject to a tax in an amount equal to the highest rate of tax for the applicable income tax year under K.S.A. 79-32,110(a), and amendments thereto, multiplied by the sum of:
(1) Each nonresident electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income attributable to the state; and
(2) each resident electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income calculated as either: (A) The sum of income attributable to the state and income not attributable to the state; or (B) income attributable to the state. The electing pass-through entity must use the same method of calculation for all resident electing pass-through entity owners. The provisions of paragraphs (1) and (2) shall be determined pursuant to K.S.A. 79-32,130, 79-32,131, 79-32,133 and 79-32,139, and amendments thereto.
(b) An electing pass-through entity shall be treated as a corporation under K.S.A. 79-32,101, and amendments thereto, with respect to the tax imposed under this act, except that K.S.A. 79-32,107, and amendments thereto, shall not apply during the first taxable period for which this act is applicable.
(c) Any credit allowed pursuant to article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, that is attributable to the activities of an electing pass-through entity in the taxable year shall be passed through to and claimed by the electing pass-through entity owner.
(d) Any modification to federal taxable income pursuant to K.S.A. 79-32,117 or 79-32,138, and amendments thereto, and any expensing deduction allowed pursuant to K.S.A. 79-32,143a, and amendments thereto, that is attributable to the activities of an electing pass-through entity in the taxable year shall be claimed on:
(1) The electing pass-through entity's return; and
(2) each electing pass-through entity owner's individual return, in the same proportion and manner as would have applied without the election under K.S.A. 2024 Supp. 79-32,286, and amendments thereto.
(e) The provisions of article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, regarding the collection, administration and enforcement of tax shall be applicable to the tax due under this section, and notwithstanding the provisions of K.S.A. 79-32,129 and 79-32,139, and amendments thereto, an electing pass-through entity shall be a taxpayer.
(f) The provisions of this section shall apply to taxable years commencing on or after January 1, 2022.