Fillable Schedule K-64 - Business Machinery And Equipment Credit (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE K-64

PART A — SCHEDULE OF PROPERTY TAXES PAID

GENERAL INFORMATION

Using your paid receipt from the county treasurer, enter the

K.S.A. 79-32,206 provides a tax credit against the income tax,

amount of personal property tax timely paid on qualifying business

privilege tax, and insurance company premiums tax for personal

machinery and equipment. Do not include any additional tax

property taxes paid. The credit is 25% of the personal property

incurred due to filing penalties. If the receipt does not provide all

taxes timely paid in the tax year. The property tax must have been

the information necessary to complete Part A, obtain the personal

timely paid during the tax year for which the credit is taken. The

property valuation notice and/or contact your county appraiser

amount of credit that exceeds the tax liability will be refunded.

for a breakdown.

Partners, Shareholders or Members: If you are a partner,

“Qualifying machinery and equipment” means commercial and

shareholder or member in more than one business qualifying for

industrial machinery and equipment required to be listed for

this credit, enclose a separate Schedule K-64 for each business.

property taxation on Schedule 2, Schedule 5, or Schedule 6 by a

LINE 1a—Enter the total personal property tax timely paid this tax

for-profit business required to file an income tax, privilege tax, or

year on qualified machinery and equipment from column (a).

insurance company premiums tax return.

LINE 1b—Partners, shareholders or members: Enter percentage

• Schedule 2—Prescribed and/or itemized machinery and

that represents your proportionate share in the partnership,

equipment used in mineral leasehold interests including

S corporation, LLC or LLP. Sole owners: Enter 100%.

diesel engines, drilling rigs, electric motors, line piping, mud

LINE 2—Multiply line 1a by line 1b. This is total personal property

pumps, water injection pumps, oil separators, oil well tubing

tax eligible for credit this tax year.

pumps, pumping jacks, service units and tanks.

PART B — COMPUTATION OF CREDIT

• Schedule 5—Commercial and industrial machinery and

All filers will complete line 4. Only Form K-40 and Form K-41

equipment used for business purposes.

filers will complete lines 5, 6 and, if applicable, line 7.

• Schedule 6—All other business related tangible personal

property not elsewhere classified, such as spare parts.

LINE 3—The credit percentage allowed is 25% for all property

Equipment that is leased can only be claimed by the owner.

taxes timely paid in 2011 (both the 2nd half of the 2010 and

any 2011 property taxes).

Personal property tax paid on motor vehicles, nonbusiness use

LINE 4—Multiply line 2 by the percentage on line 3 and enter

property, leased equipment and tangible personal property owned

result . This is the credit available for this tax year.

by a public utility is not eligible for this credit (K.S.A. 79-32,206).

Form K-120 and Form K-130 filers: Skip lines 5 through 7

and enter this amount on the appropriate line of Form K-120

Railroad and Telecommunication companies should

or Form K-130.

use Credit Schedule K-36 to claim property taxes paid

on machinery and equipment.

IMPORTANT: If the amount on line 4 is more than $500, you

must enclose copies of the paid tax receipts with this schedule.

Partnerships, S Corporations, LLCs and LLPs

Partners, shareholders and members will claim this credit in

LINE 5—Enter the amount of your Kansas tax liability after all

the same manner as they account for their proportionate share

credits other than this credit.

of the income or loss of the partnership, S corporation, LLC, or

LINE 6—Enter the lesser of lines 4 or 5. Enter this amount on

LLP.

If you are a partner, shareholder or member in more than

the appropriate line of Form K-40 or Form K-41.

one business qualifying for this credit, you must enclose a

If line 6 is less than line 4, complete PART C.

separate Schedule K-64 for each business.

PART C — COMPUTATION OF REFUND

Required Information

LINE 7—Subtract line 6 from line 4. This is the excess credit to

In order to complete this schedule you will need a copy of the

be refunded to you. If line 6 is more than line 4 you are not

receipt(s) from your county treasurer showing timely payment of

entitled to a refund. Enter this amount on the appropriate line

the personal property tax on the qualifying property.

of Form K-40 or Form K-41.

IMPORTANT: You MUST enclose copies of the paid receipts

TAXPAYER ASSISTANCE

with this schedule if the credit on line 4 is more than $500.

The Department of Revenue reserves the right to request any additional

If you have questions about personal property tax or your

receipts as necessary.

valuation notice, contact your county appraiser. If you have

questions or need a copy of your personal property tax receipt

If your paid receipt does not separate the tax paid on

for payment, contact your county treasurer.

qualified property from other personal property taxes paid,

If you need assistance completing this schedule, contact the

you must obtain a breakdown of the tax paid on the qualified

Department of Revenue:

property from the county and enclose it with this schedule.

Tax Operations

This may include obtaining the assessed value and mill levy from

Docking State Office Building, 1

Floor

the county in order to determine the tax paid on qualified property.

915 SW Harrison St.,

For example, if you own Schedule 2 property, you will need the

Topeka, KS 66625-2007

tax paid on prescribed and itemized equipment separated from

the total tax paid on the mineral leasehold interests. For Schedule

Phone: (785) 368-8222

6 property, you will need the tax paid on business-related property

Fax: (785) 291-3614

separated from Schedule 6 non-business-related property.

Web site:

Schedule K-64 - Business Machinery And Equipment Credit Page 2

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