Session of 1997
HOUSE BILL No. 2242
By Representative Weiland
9 AN ACT concerning compensating use taxation; concerning the collection
10 thereof; amending K.S.A. 12-198 and repealing the existing section.
12 Be it enacted by the Legislature of the State of Kansas:
13 New Section 1. All sales of vehicles required to be registered under
14 the provisions of article 1 of chapter 8 of the Kansas Statutes Annotated,
15 and amendments thereto, the sale of which is subject to taxation under
16 the Kansas retailers' sales tax act, shall be exempt from city and county-
17 wide retailers' sales taxes.
18 Sec. 2. K.S.A. 12-198 is hereby amended to read as follows: 12-198.
19 (a) A compensating use tax for the privilege of using or storing within a
20 city or county any vehicle which is required to be registered under the
21 provisions of article 1 of chapter 8 of the Kansas Statutes Annotated, and
22 amendments thereto, or any vessel, as defined by K.S.A.
23 802, and amendments thereto, is hereby imposed by every city or county
24 imposing a retailers' sales tax. In the case of such vehicles, such tax shall
25 be collected by the county treasurer at the time the vehicle is registered
26 in this state following a sale occurring within or without this state. Reg-
27 istration of such vehicle within a taxing jurisdiction shall be deemed to
28 constitute use or storage thereof for compensating tax purposes and the
29 residence or place of business of the applicant shall be deemed to be the
30 situs of such use or storage for purposes of the collection and distribution
31 thereof. The rate of any such tax shall be fixed at the same rate as such
32 city's or county's retailers' sales tax. Except as otherwise provided in this
33 section, any city or county imposing a compensating use tax is prohibited
34 from administering or collecting such tax locally, but shall utilize the serv-
35 ices of the state department of revenue to administer, enforce and collect
36 such tax. Such tax shall be identical in its application and exemptions
37 therefrom to the Kansas compensating tax, and all laws and rules and
38 regulations of the state department of revenue relating to the Kansas
39 compensating tax shall apply to such local compensating use tax insofar
40 as the same may be made applicable.
41 (b) The secretary of revenue is authorized to administer, enforce and
42 collect a city's or county's compensating use tax and to adopt such rules
43 and regulations necessary for the efficient and effective administration,
1 enforcement and collection thereof. The state director of taxation shall
2 cause such taxes to be collected within the boundaries of such taxing
3 subdivision at the same time and in the same manner provided for the
4 collection of the state compensating use tax. All moneys collected by the
5 director of taxation pursuant to the provisions of this section shall be
6 credited to the city and county compensating use tax fund, which fund is
7 hereby established in the state treasury. Any refund due on any city's or
8 county's compensating use tax collected pursuant to this section shall be
9 paid out of the sales tax refund fund and reimbursement to such fund
10 shall be made by the director of taxation from collections of local com-
11 pensating use tax revenue. All moneys collected pursuant to this section
12 for a city or county shall be remitted at least quarterly by the state treas-
13 urer to the treasurer of such city or county.
14 (c) All revenue received by any county treasurer from a countywide
15 compensating use tax shall be apportioned among the county and each
16 city located in such county in the same manner as provided in K.S.A. 12-
17 192, and amendments thereto, for the apportionment of revenue received
18 from a countywide retailers' sales tax.
19 Sec. 3. K.S.A. 12-198 is hereby repealed.
20 Sec. 4. This act shall take effect and be in force from and after its
21 publication in the statute book.