County to look at revenue, purpose of intangibles tax
It's not touchable, visible, or has an odor. None of the human senses can detect it.
It's intangible.
During Monday's meeting of Marion County Commission, commission chairman Randy Dallke told the commission that he had been contacted by two constituents who asked why Marion County imposed an intangibles tax.
Marion County Clerk Carol Maggard told the commission that the county commission determines a percentage, if any, and the individual cities and townships also can levy the tax.
Marion County's intangibles tax is .75 percent, which is the percentage of all counties that have imposed the special tax.
Marion County is one of only 31 of 105 Kansas counties that have intangibles tax. Maggard said there was no way for her to track the tax, who paid, who didn't, on a local basis and some people think it is an unfair tax.
In Marion County, Goessel levies a 2.25 percent and Peabody a 1.125 percent intangibles tax. Townships in the county that levy the tax are Menno, Peabody, and West Branch at 2.25 percent, and Fairplay at 1.125.
What is an intangibles tax?
According to Kansas Department of Revenue, intangibles tax is a local tax levied on gross earnings received from intangible property such as savings accounts, stocks, bonds, accounts receivable, and mortgages. It is not to be confused with the state income tax which is used to support state government.
All Kansas residents and corporations owning taxable properties and every non-resident owning accounts receivable or other intangible property with a Kansas business site address, must file an intangibles tax return if the tax due is $5 or more and the earnings were received from the property during a calendar or fiscal year.
Neighboring counties
Our neighbors to the west, McPherson County, imposes a .75 percent tax. There aren't any cities who impose it but there are 21 townships that do with all but one charging 2.25 percent and the one, 1 percent.
Harvey County does not have an intangibles tax. North Newton imposes a 2 percent tax, and seven townships 2.25 percent taxes.
Butler County nor any of its cities and townships impose the special tax.
In Chase County, the county imposes a .75 percent tax and one township is the only other entity in that county that imposes the tax at 2.25 percent.
A .75 percent tax is imposed by Dickinson County and eight townships have followed suit with a 2.25 percent tax.
Morris County and all of its cities and townships do not impose the privilege tax.
Maggard was asked to provide more research information regarding the amount of revenue the county receives from the tax. She noted that the amount of revenue had dramatically decreased in recent years.
