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§ 2. Taxation of incomes. The state shall have power to levy and collect taxes on incomes from whatever source derived, which taxes may be graduated and progressive.

History: Adopted by convention, July 29, 1859; ratified by electors, October 4, 1859; L. 1861, p. 62; combined into § 1 by revision, L. 1923, ch. 255, § 1; new section adopted, L. 1931, ch. 300, § 1; November 8, 1932.

Revisor's Note:

Section originally provided for taxation of notes, bills, money loaned and other property of banks. Subject matter was combined into § 1 by the 1923 revision.

L. 1931, ch. 300, § 2, erroneously provided that original § 2 should be renumbered as § 3; original § 2 had already been eliminated by combining it with § 1, see L. 1923, ch. 255, § 1.

Cross References to Related Sections:

Adoption of federal income tax laws by reference authorized, see § 11 of this article.

Law Review and Bar Journal References:

Cited in "The Kansas Conformity Income Tax Act: Part I," Donald L. Cordes, 17 K.L.R. 147, 149 (1968).

Turbines vs. Tallgrass: Law, Policy, and a New Solution to Conflict over Wind Farms in the Kansas Flint Hills, Brian Dietz, 54 K.L.R. 1131 (2006).

The Constitutional Vulnerabilities of Kansas's Income Tax Reforms, David Barclay, 61 K.L.R. 1021 (2013).

CASE ANNOTATIONS

1. Income tax law provision forbidding deduction of interest paid to stockholders valid. Natural Gas Pipe Line Co. v. Commission of Revenue and Taxation, 155 Kan. 416, 423, 125 P.2d 397.

2. Shares of state bank stock are validly assessed to shareholders at the intangible rate; classification not unlawful discrimination. Stevenson v. Metsker, 130 Kan. 251, 286 P. 673.

3. Federal employees are subject to state income tax on their salaries. Clinton v. State Tax Commissioner, 146 Kan. 407, 71 P.2d 856.

4. Classification in tax act must be reasonable and not arbitrary or discriminatory. Hartman v. State Commission of Revenue and Taxation, 164 Kan. 67, 70, 73, 75, 78, 187 P.2d 939.

5. K.S.A. 79-3290 relating to basis of ascertaining net income held constitutional. Missouri Pacific Railroad Co. v. McDonald, 207 Kan. 744, 751, 486 P.2d 1347.

6. Constitutionality of statutes (79-3201 et seq.) taxing of federal military retirement benefits examined and upheld. Barker v. State, 249 Kan. 186, 815 P.2d 46 (1991); rev'd., 112 S. Ct. 1619 (1992).

7. Applying separate income tax rates for single and married persons does not violate due process. Peden v. Kansas Dept. of Revenue, 261 Kan. 239, 244, 930 P.2d 1 (1996).