40-2804. Same; net income for purpose of computing tax on other companies.
40-2804
40-2804. Same; net income for purpose of computingtax on other companies.For the purpose of computing the tax imposed under the provisions ofthis act the term "net income" as applied to a domestic fire andcasualty insurance company shall mean the amount required to be reportedas "net income" in the annual statement form required to be filed bysuch company with the Kansas commissioner of insurance under theprovisions of K.S.A. 40-225, and amendments thereto; as applied to a domesticmutual hail insurance company the term "net income" shall mean the amountrequired to be reported as "net income," annual increase in reserve fundin section VII of the annual statement form required to be filed by suchcompany with the Kansas commissioner of insurance under the provisionsof K.S.A. 40-225, and amendments thereto; and as applied to a domestic countymutual fire insurance company the term "net income" shall mean the amountrequired to be reported as "net income," annual net gain in its combinedreserve and general funds in section VII of the annual statement formrequired to be filed by such company with the Kansas commissioner ofinsurance under the provisions of K.S.A. 40-225, and amendments thereto.If any such domestic fire andcasualty insurance company, domesticmutual hail insurance company, ordomestic county mutual fire insurance company does business in statesother than Kansas its "net income" shall be determined by the proportionof net premiums (gross premiums less cancellations) received frombusiness written in Kansas compared to total net premiums received fromall its business. Insurance companiesconnected through stock ownership with a common parent corporation,which operate under common control and management are hereby authorizedto make a consolidated return for the purpose of determining "netincome" under the provisions of this section and intercompanytransactions shall not be considered or included for the purpose of suchdetermination. If a domestic insurancecompany is exempt for any reason from filing an annual statement withthe Kansas insurance department, its net income shall be determined inthe same manner as herein provided. For the purposes of this section,the term "net income" shall not include dividends received from stockissued by Kansas Venture Capital, Inc. to the extent such dividends areincluded in the Kansas taxable income of a corporation, interest income onobligations of this state or a political subdivision thereof which isspecifically exempt from income tax under the laws of this state authorizingthe issuance of such obligations.For the purposes of this section, the term "net income" shall include theamount of any charitable contribution made to the extent the same is claimed asthe basis for the credit allowed pursuant to K.S.A. 79-32,196, andamendments thereto. For the purposes of this section, the term "net income"shall include the amount of any contribution made to the extent the same isclaimed as the basis for the credit allowed pursuant toK.S.A. 2009 Supp.74-50,154, andamendments thereto.
History: L. 1970, ch. 184, § 4;L. 1973, ch. 197, § 2;L. 1986, ch. 332, § 6;L. 1994, ch. 38, § 7;L. 2004, ch. 112, § 72; July 1.