HB 2242--
Session of 1997
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. 11 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. 82a-902 82a- 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, HB 2242

 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.