Kansas: The Sunflower State

Kansas is located in the Midwest of the United States. The state is bordered by Nebraska to the north, Missouri to the east, Oklahoma to the south, and Colorado to the west. “The Sunflower State” covers an area of ​​210,000 km². A total of almost 3 million people live here. According to ehuacom, the capital, called Topeka, is the fourth largest city in the state with a population of approximately 130,000.

Businesses choose Kansas because of clear competitive advantages that lead to higher performance and profits. Tax and cost benefits are valued by companies, as are qualified workers and a well-developed infrastructure. Kansas has become a haven for innovation and investment.

The central location of Kansas offers an ideal location for international companies to open up the North American market. Kansas can be a competitive solution for you if you are looking to expand into the US.

Kansas Location Map

DISTINCTIVE INFRASTRUCTURE

A large number of industries operate and grow in Kansas. New success stories are written here every day. The extraordinarily good infrastructure plays a significant role in this. The state recognized long ago that this has become a competitive advantage and is therefore investing in the construction and maintenance of its multimodal infrastructure. Whether on the road, rail or in the air, Kansas is excellently positioned in these areas.

It is possible to transport goods more easily and cheaply from or to Kansas. CNBC ranks the Sunflower State third nationally for infrastructure quality. The state ranks sixth in road ratings (Reason Foundation, 2019). Numerous production facilities, warehouses and distribution centers have therefore settled in the “Sunflower State”.

LAND LOCKED – NO PROBLEM

The rail network is the sixth largest in the USA and, in addition to four Class I railroad companies, also three shunting/terminal railroad companies ensure smooth traffic throughout Kansas. The operators manage a total of over 100 cargo handling facilities and terminals. In addition to local, national and global markets are also supplied.

The transport options by air are in no way inferior to those by rail. Kansas is home to eight commercial service facilities, over 130 public and 200 private airports. The close proximity of many airports to industrial areas offers companies diverse, attractive options in the area of ​​air transport services for cargo.

Despite its landlocked status, Kansas offers access to inland waterways. Eight commercial terminals were built along the nearly 200-kilometer access to the Missouri River. Another option for shipping cargo is the Port of Catoosa. This is located just 80 kilometers from the southern border of Kansas.

WORKFORCE – QUALIFIED AND READY AT ALL TIMES

The expansion of the economy is also due to the local workforce. Thanks to good schools and strong partnerships between industry and education, the workforce has grown to meet the demands of business. You are ready to face and master the demands of the global economy.

INCOME TAX IN KANSAS

Kansas charges an income tax of 3.1-5.7% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN KANSAS

Kansas charges a 7% corporate income tax. In addition, federal corporation tax is payable.

SALES TAX IN KANSAS

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in Kansas

The sales tax in Kansas is 6.5% at the state level. Municipalities or districts charge an average of 2.18% sales tax. Combined, an average of 8.68% is due.

Kansas Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

July 1, 2021

Transactions included:

Cumulative gross receipts from retailer sales to customers in Kansas.

Treatment of tax-exempt transactions:

Pending further clarification on the treatment of exempt sales and services

Reason:

Sale only

Sales/Transactions Threshold:

$100,000

Evaluation period:

The threshold applies to sales from the current or immediately preceding calendar year

Extra information:

  • Registration Requirements: According to the Kansas Department of Revenue, a remote seller must register and begin collecting sales tax on the first sale/date after the Economic Nexus Threshold is reached.
  • Prior to the passage of SB 50in May 2021, Kansas Department of Revenue Notice 19-04 required any remote business selling into the US state to register to collect and remit sales tax; there was no collateral for small sellers. SB 50 states that a remote seller who reaches the Economic Nexus Threshold “is not required to collect and remit taxes on sales occurring before July 1, 2021.”

Kansas Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

July 1, 2021

Economic Nexus Threshold:

More than $100,000 in sales in Kansas in the current or previous calendar year. When calculating the threshold:

  • Marketplace moderators include all sales (direct and third-party) made through the marketplace

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Kansas Department of Revenue (DOR) and collect Kentucky sales tax on sales not taxed by a marketplace provider once you cross the Economic Nexus threshold.
  • Remote Marketplace Sellers: You may be required to register with the Kansas DOR even if you cross the Economic Nexus Threshold. Contact the DOR for more information.
  • In-State Multichannel Sellers: You must register with the Kansas DOR and collect taxes on sales that are not taxed by a marketplace provider.
  • In-State Marketplace Vendors: You may need to register; Contact the Kansas DOR for more information.
  • Learn more at the SB 50and the Kansas DOR.