Form Pa - Corporate Annual Report Page 3
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3Franchise Fee Computation Work Sheet
Per Kansas law, balance sheets are no longer required on corporate annual reports after July 1, 1997. Please use this work sheet to
compute the corporation’s franchise fee. After the computation has been made, please insert the figure on the space provided on the
annual report form (line 10) and submit that amount payable to the secretary of state. Upon completion of the work sheet, discard it or
keep it for your files. Do not mail the work sheet to the secretary of state’s office. If you have any questions about completing the
form, please call one of our examiners at (785) 296-4579.
*HELPFUL REMINDERS (The “zero rule”)
If the corporation has a zero entry in “Total in KS” and a zero entry in “Total Everywhere,” the “Percent to KS” is 100 percent,
not 0 percent (K.S.A. 17-7501). (See example below.)
If the corporation has a numerical entry other than zero in “Total in KS” and a zero entry in “Total Everywhere,” “Percent to
KS” is 100 percent, not 0 percent. (See example below.)
Total in KS
Total Everywhere
Percent to KS
1. Average value of real and tangible
personal property owned or rented
during the taxable year.
$__________
(divided by) $__________
(equals)
_________%*
2. Compensation paid.
$__________
“ “
$__________
“ “
_________%*
3. Sales.
$__________
“ “
$__________
“ “
_________%*
4. Average percentage of the three
percentages (Add percentages and divide by three).
_________%
Tax Computation
5. Net Worth (Total shareholders equity).
$__________
6. Average percent (line 4).
_________%
7. Multiply line 5 by line 6.
$__________
8. Multiply line 7 by .001. This is the franchise fee. Please enter this figure on line 10 of the annual report.
$__________
The minimum franchise fee is $20 and the maximum fee is $2,500. Please make the check payable to the Secretary of State.
Do not send cash.
EXAMPLE
Total in KS
Total Everywhere
Percent to KS
1. Average value of real and tangible
personal property owned or rented
(
)
100
0
0
during the taxable year.
Zero rule applies
$__________
(divided by) $__________
(equals)
_________%*
100
200
50
2. Compensation paid.
$__________
“ “
$__________
“ “
_________%*
(
)
300
100
0
Zero rule applies
3. Sales.
$__________
“ “
$__________
“ “
_________%*
4. Average percentage of the three
(
)
83
250 divided by 3
percentages (Add percentages and divide by three).
_________%
Tax Computation
40,000
5. Net Worth (Total shareholders equity).
$__________
83
6. Average percent (line 4).
_________%
40,000
(
)
33,200
7. Multiply line 5 by line 6.
$__________
x .83
33
8. Multiply line 7 by .001. This is the franchise fee. Please enter this figure on line 10 of the annual report.
$__________
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