Private Letter Ruling

Ruling Number:P-1999-203
Tax Type:Individual Income Tax
Brief Description:Taxation of German nationals on temporary assignment in Kansas.
Approval Date:09/20/1999

Office of Policy & Research

September 20, 1999


Re: Kansas Income Tax


Your correspondence of July 30, 1999, has been referred to me for response. Thank you for your inquiry. Your letter states, in pertinent part, as follows:
Kansas law requires the use of federal adjusted gross income (FAGI) as the starting point for computing the Kansas income tax. If the income in question is subject to federal income tax and is included as part of the FAGI, it could be subject to Kansas income tax.

The question of whether the income will be taxable by the United States or by Germany must be answered by reference to any treaty agreements between the two countries. If there is a treaty, the income would most likely be taxed by Germany. Specific information about a treaty is not available from this office, but can be obtained from the Internal Revenue Service, or perhaps from the United States or German Embassy.

Although the state of Kansas is without authority to determine whether income is or is not subject to federal taxation, and whether or not it is included in FAGI, for purposes of this response we will assume the income in question is subject to federal tax and that it will be included in FAGI. The particular statute which imposes the Kansas income tax is K.S.A. 79-32,110. The statute provides, in pertinent part:
The term "Kansas taxable income" is defined by K.S.A. 79-32,116. This statute provides, (in its entirety), that:

The term "Kansas adjusted gross income" is defined by K.S.A. 79-32,117. This statute provides, in part, that:

As you can see from the statutes quoted above, tax due from individuals filing as nonresidents is computed as if the individual taxpayer were a resident of the state of Kansas. Then, after the tax has been computed, the amount of the tax is prorated based on whether the income was from Kansas or non-Kansas sources.

In light of the fact Kansas begins with FAGI for all state income tax computations, the treatment of nonresident aliens of the United States is much like the treatment of any non-Kansas resident. Any treaties between the United States and foreign countries are, in effect, recognized indirectly. The forms to be filed are the same. The primary differences occur with regard to such things as the credit for taxes paid to another state; this credit is not available for income tax paid to a foreign country.

This private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to make an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this private letter ruling.

I trust this information is of assistance. If I can be of further service, please feel free to contact me.


Jim Weisgerber
Tax Specialist


Date Composed: 09/22/1999 Date Modified: 10/10/2001