State & Local Tax Impacts of COVID-19 for Kansas

Thoughtware Alert Published: Dec 11, 2020
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Information current as of January 31, 2021.

The SARS-CoV-2 virus and the incidence of COVID-19 are changing life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Kansas

  • While motor carriers and persons operating commercial vehicles must still obtain the requisite overdimension/overweight permits as required by the Department of Transportation before operating, the registration and fuel tax permit fees are temporarily waived.
    • Governor's Executive Order 20-09, March 20, 2020.
  • Kansas has extended homestead or property tax relief refund claim due dates to October 15 from April 15 for 2019 homestead or property tax relief refund claims.
  • Kansas has extended individual income, corporate income, fiduciary and privilege taxes to July 15 from April 15 for filing and payment for calendar and fiscal-year filers and no penalty and interest will be imposed until either extended due date.
    • Kansas Governor’s Executive Order 20-13 and DOR Notice 20-01, March 23, 2020.
  • Kansas has issued a waiver of penalty and interest for the first quarter 2020 estimated tax payments for individual income, corporate income, privilege and excise tax purposes. The waiver is effective for payments made after April 15 and on or before July 15, when the waiver will expire.
    • Kansas DOR Notice 20-02, April 2, 2020.
  • The Kansas Governor April 9 issued an executive order extending renewal deadlines and waiving fees for any license, certificate, permit, or registration issued to any individual, business, or organization for excise tax purposes. The measures include: 1) extending the deadline for 90 days regarding any occupational or professional license, certificate, permit, or registration issued to any taxpayer, that was in good standing as of March 12; 2) waiving any late, delinquent, penalty, or expiration fees associated with any license, certificate, permit, or registration; and 3) clarifying what is "good standing." The extension and waiver apply to licenses, certificates, permits, or registrations that have expired or will expire during the State of Emergency. The order took effect on April 9 and will be in force until rescinded or until the emergency relating to COVID-19 expires, whichever is earlier.
    • Governor's Office, Exec. Ord. 20-19, 04/09/20
  • Kansas has generally extended to May 31 the temporary deadlines set in prior Executive Orders, other than the May 15 deadline for rules pertaining to commercial vehicles actively participating in the COVID-19 relief or restoration efforts.
    • Governor’s Executive Order 20-28, April 30, 2020.
  • Kansas has extended to July 15 the deadline for filing and paying the 2019 calendar-year and fiscal-year tax returns for individual income, corporate income, trust income and privilege excise taxes; extended to October 15 the filing deadline for homestead and property tax relief refund claims; and clarified that estimated tax payments remain due April 15.
    • Governor’s Executive Order 20-37, May 26, 2020 (expires June 30).
  • Kansas legislation subjects counties to the limitations and prohibitions upon the imposition or levy of retailers' sales taxes. Further, it restricts counties to levy ad valorem taxes upon real property located within any redevelopment project area established under statutory requirements and temporarily disallows counties to levy and collect taxes on income from whatever source derived.
    • Kansas H.B. 2016 (Laws 202), effective June 8, 2020.
  • Kansas has further extended the effective date of prior emergency orders until the earlier of September 15, until rescinded, or until the statewide COVID-19 emergency extended by H.B. 2016 expires. The extension includes Executive Order 20-37 pertaining to income and property tax deadlines.
    • Governor’s Executive Order 20-49, June 30, 2020.
  • Kansas further extended conditional and temporary relief from certain motor carrier rules and regulations due to COVID-19 for excise tax purposes until the earlier of being rescinded, September 14, or the statewide COVID-19 emergency extended by H.B. 2016 expires. This includes registration and fuel tax permit requirements, as enforced by the Department of Revenue, for motor carriers and persons operating commercial vehicles actively participating in the COVID-19 relief; waiving fees associated with overdimension and overweight permits; and clarifying that the order supersedes any contrary order by any local health department for motor carriers and should be read in conjunction with previous executive orders. 
    • Governor’s Executive Order 20-62, August 17, 2020.
  • Kansas further extended certain deadlines due to COVID-19 for corporate income, individual income, property, excise and trust income tax purposes. The measures include reissuing 1) Executive Order 20-37, allowing certain deferred tax deadlines and payments during the state of disaster emergency; 2) Executive Order 20-39, extending renewal deadlines and waiving fees for any license, certificate, permit or registration issued to any individual, business or organization; and 3) Executive Order 20-55, extending temporary 60-day permits for motor vehicles purchased after January 1 and through May 31 and postponing certain application requirements for newly purchased vehicles. The order remains in force until the earlier of being rescinded, January 26, 2021, or until the statewide COVID-19 emergency extended by H.B. 2016 expires.
    • Governor’s Executive Order 20-64, September 10, 2020.
  • Kansas will waive any applicable penalties for employers and employees associated with the under-withholding and underpayment of individual estimated tax for all employees required to work remotely due to the COVID-19 pandemic. The waiver is effective for the period the governor’s Declaration of Disaster Emergency Decree remained in effect.
    • Kansas DOR Frequently Asked Questions About Withholding, December 1, 2020.
  • Kansas extended temporary relief from certain motor carrier rules and regulations due to COVID-19, including 1) extending the temporary suspension of registration and fuel tax permit requirements, as enforced by the DOR, for motor carriers and persons operating commercial vehicles actively participating in the COVID-19 relief or restoration efforts; 2) providing that certain licensing, certification, permitting, vehicle weight rules, and regulations are modified or suspended; 3) waiving fees associated with over-dimension and overweight permits; and 4) clarifying the order supersedes any contrary order by any local health department for motor carriers and is read in conjunction with previous executive orders. The order took effect on December 31, 2020, and will remain in force until rescinded, either on February 28 or when the statewide COVID-19 emergency extended by 2020 H.B. 2016 expires, whichever is earlier. 
    • Governor’s Executive Order 20-72; December 31, 2020.
  • Kansas issued guidance on tax reporting for teleworking employees. For the period of March 13, 2020, through December 31, 2020, inclusive, for wages paid to employees who are temporarily teleworking in a state other than their primary work location, employers have the option to continue to withhold income taxes based on the state of the employee’s primary work location, rather than the withholding being based on the state in which the employee is teleworking or otherwise working during the pandemic. Any provisions of Kan. Stat. Ann. §79-3296 that are in conflict with this are suspended. On and after January 1, 2021, employers must comply with the statute and make all necessary adjustments to withhold from wages whenever the wage recipient is a Kansas resident or the wages are paid on account of a personal service performed in Kansas. The governor’s executive order stipulates that, other than as provided, the order doesn’t affect any other laws, regulations, or rules relating to the filing requirements of Kan. Stat. Ann. §79-3201 (Kansas Income Tax Act) or Kan. Stat. Ann. §79-3294 (Kansas Withholding and Declaration of Estimated Tax Act). The order will be in force until the earlier of its rescission or the expiration of the statewide state of disaster emergency. 
    • Governor’s Executive Order 21-01; January 26, 2021.
  • Kansas further extended a number of executive orders already in place until rescinded or until the statewide state of disaster emergency expires (whichever is earlier), including Executive Order 20-37, which allows certain deferred tax deadlines and payments during the state of disaster emergency. Senate Bill 14 extended the state of disaster emergency until March 31, 2021.
    • Governor’s Executive Order 21-02; January 26, 2021.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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