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Kansas Franchise Tax

The debate is on in Kansas on what to do with the franchise tax currently imposed on about 16,000 small businesses in the state.  Republicans see economic benefit in eliminating tax, while Democrats say cut jeopardizes funding obligations for discretionary and entitlement programs.

Democrats argument: It’s unwise to cut taxes so much because of previously committed spending priorities for schools, senior citizens, the state pension system and roads.

Republican argument: Eliminating the state franchise tax will boost to the economy, freeing businesses to expand, and would save businesses $44 million annually.

Update 2-23-2007: to clarify this is in regards to the franchise tax which is currently a 0.125% tax imposed on net worths of $100,000 or more.

About Ryan Knoll

Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.


  1. Just to clarify: this tax is quite common at the state level, and applies to all businesses which are incorporated. Here, the use of the word “franchise” is in the classic sense of “frank” or “franchir”: that is to say, the sovereign grants you the right to conduct business within his kingdom. The term “franchise” as used in “Franchise Pundit” or “franchisee of McDonalds” is descended from the classic usage but is not the same as in “franchise tax”

  2. Oops, you are right Paul. I wasn’t paying enough attention when I posted.

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