Agritourism Liability Insurance Credit
Income Taxpayers – Effective for all taxable years beginning after Dec. 31, 2003.
Beginning in tax year 2013, this credit shall only be available to corporations that are subject to the Kansas corporate income tax, i.e. C corporations. This credit shall not be available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.
For taxable years beginning after Dec. 31, 2003, a credit is allowed in an amount equal to 20 percent of the cost of liability insurance paid by a registered agritourism operator that operates an agritourism activity.
An agritourism business must be registered with the Kansas Tourism Division at the Kansas Department of Commerce to be eligible for the credit. For information and assistance regarding the establishment or operation of an agritourism activity, contact: Kansas Agritourism (travelks.com) or call (785)230-4299 with any questions.
The credit amount is 20 Percent of the cost of liability insurance paid by a registered agritourism operator during the tax year.
Limitation of Credit
If the amount of credit exceeds the taxpayer’s tax liability for the tax year, the excess credit may be carried forward to the next succeeding year or years until the total amount of tax credit has been used, except that no credit may be carried over for deduction after the third taxable year succeeding the taxable year in which the credit is earned.
Procedures to Claim Credit
You may download Schedule K-33 to claim the agritourism liability insurance credit. This schedule must be completed and submitted with the income tax return. You may also call the Department of Revenue voice mail system at 785-296-4937 to request Schedule K-33. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.
Agritourism Liability Insurance Definitions
Registered Agritourism Operator
Any person who is engaged in the business of providing one or more agritourism activities and is registered with the Kansas Tourism Division at the Kansas Department of Commerce.
Any activity which allows members of the general public, for recreational, entertainment or educational purposes, to view to enjoy rural activities, including, but not limited to, farming activities, ranching activities or historic, cultural or natural attractions. An activity may be an agritourism activity whether or not the participant pays to participate in the activity. An activity is not an agritourism activity if the participant is paid to participate in the activity.