Notice

Notice Number:12-89-3
Tax Type:Individual Income Tax; Corporate Income Tax
Brief Description:Income Exempt from Tax
Keywords:


Body:
REVENUE NOTICE 12-89-3



TO: Kansas Tax Practitioners and Taxpayers

SUBJECT: Income Exempt from Tax


This Revenue Notice has been prepared to provide guidance to individuals in determining whether income from certain obligations is taxable in the state of Kansas, as well as a description of certain entities exempt from state exemption by reason of federal statute. While every attempt was made to assemble a complete listing, this notice may not provide an exhaustive listing of all obligations. Where an obligation is not referred to in this notice, the burden will be upon the individual to show that the obligation is exempt from Kansas taxation.

If you believe you have income which is exempt from Kansas income taxation, either by reason of Kansas statutes or by reason of the law of the United Sates, and that income is not described in this notice, you may seek a ruling on the taxability of the income by writing to the address shown below. A detailed explanation must be enclosed as to why you believe this income to be exempt. If you have any questions, please contact Kathleen Smith at (913) 296-5476.



Kansas Department of Revenue
Division of Taxation
Technical Support Unit
Topeka, Kansas 66625

ENTITIES EXEMPT FROM STATE INCOME TAXATION
BY REASONS OF FEDERAL STATUTE

The following entities are exempt from state income taxation by reason of the following federal statutes.

1. BANKS FOR COOPERATIVES - (12 U.S.C.A Section 2134)

2. COMMODITY CREDIT CORPORATIONS - (15 U.S.C.A. Section 713a-5)

3. FEDERAL CREDIT UNIONS - (12 U.S.C.A. Section 1768)

4. FEDERAL CROP INSURANCE CORPORATION - (7 U.S.C.A. Section 1511)

5. FEDERAL DEPOSIT INSURANCE CORPORATION - (12 U.S.C.A. Section 1825)

6. FEDERAL FINANCING BANK - (12 U.S.C.A. Section 2290(a))

7. FEDERAL HOME LOAN BANK SYSTEM - (12 U.S.C.A. Section 1433)

8. FEDERAL HOME LOAN MORTGAGE CORPORATION - (12 U.S.C.A. Section 1452(d))

9. FEDERAL INTERMEDIATE CREDIT BANK - (12 U.S.C.A. Section 2079)

10. FEDERAL LAND BANKS and FEDERAL LAND BANK ASSOCIATION - (12 U.S.C.A. Section 2055).

11. FEDERAL NATIONAL MORTGAGE ASSOCIATION - (12 U.S.C.A. Section 1723a( c )(2))

12. FEDERAL RESERVE BANKS - (12 U.S.C.A. Section 531)

13. FEDERAL SAVINGS AND LOAN INSURANCE COMPANY - (12 U.S.C.A. Section 1725(e))

14. FINANCIAL ASSISTANCE CORPORATION - (12 U.S.C.A. Section 2278b-10(a))

15. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - (12 U.S.C.A. Section 1723a( c )(1)).

16. RESOLUTION TRUST CORPORATION - (12 U.S.C.A. Section 1441a(g))

17. STUDENT LOAN MARKETING ASSOCIATION - (20 U.S.C.A. Section 1087-2(b)(2))


INCOME EXEMPT BY REASON OF FEDERAL STATUTE


Federal statutes provide exemption from state income taxation with respect to various specifically named types of income. Following is a list (not intended to be exhaustive) of exempt income and the specific statutes to which each item relates.

1. Banks for Cooperatives - Income from notes, debentures, and other obligations issued by Banks for Cooperatives (12 U.S.C.A. Section 2134).

2. Commodity Credit Corporation - Interest derived from bonds, notes, debentures, and other similar obligations issued by Commodity Credit Corporation (15 U.S.C.A. Section 713a-5).

3. Farm Credit System Financial Assistance Corporation , a.k.a. Financial Assistance Corporation - Capital, reserves and surplus thereof and the income derived therefrom (12 U.S.C.A. Section 2278b-10(b)). Notes, bonds, debentures and other obligations issued by the Financial Assistance Corporation shall be accorded the same tax treatment as system wide obligations.

4. Federal Deposit Insurance Corporation - Interest derived from notes, debentures, bonds, or other such obligations issued by Federal Deposit Insurance Corporation (12 U.S.C.A. Section 1825).

5. Federal Farm Credit Bank - Income from consolidated system-wide notes, bonds, debentures, and other obligations issued jointly and severally under 12 U.S.C.A. Section 2153 by Banks of the Federal Farm Credit System (12 U.S.C.A. Section 2055; 12 U.S.C.A. Section 2079; 12 U.S.C.A. Section 2098; and 12 U.S.C.A. Section 2134).

6. Federal Financing Bank - Income derived from obligations issued by the Federal Financing Bank (12 U.S.C.A. Section 2290).

7. Federal Home Loan Banks - Interest derived from notes, debentures, bonds and other obligations issued by Federal Home Loan Banks and from consolidated Federal Home Loan bonds and debentures (12 U.S.C.A. Section 1433).

8. Federal Intermediate Credit Banks - Income from notes, bonds, debentures, and other obligations issued by Federal Intermediate Credit Banks (12 U.S.C.A. Section 2079).

9. Federal Land Banks and Federal Land Bank Association - Income from notes, bonds, debentures, and other obligations issued by Federal Land Banks and Federal Land Bank Associations (12 U.S.C.A. Section 2055).

10. Federal Savings and Loan Insurance Corporation - Interest derived from notes, bonds, debentures, and other such obligations issued by Federal Savings and Loan Insurance Corporation (12 U.S.C.A. Section 1725(e)).

11. Financial Assistance Corporation - See Farm Credit System Financial Assistance Corporation.

12. Financing Corporation - (12 U.S.C.A. Section 1441(e)(8)(A)), Income from notes, debentures, bonds and other obligations issued by any bank and consolidated FHLD (12 U.S.C.A. 1433)

13. General Insurance Fund -




Date Composed: 10/06/1997 Date Modified: 10/09/2001