HB 2270--
Session of 1997
By Committee on Taxation

9 AN ACT imposing a local compensating use tax by cities and counties 10 upon intrastate sales of certain vehicles. 11 12 Be it enacted by the Legislature of the State of Kansas: 13 Section 1. (a) A compensating use tax for the privilege of using or 14 storing within a city or county any vehicle which is required to be regis- 15 tered under the provisions of article 1 of chapter 8 of the Kansas Statutes 16 Annotated, and amendments thereto, and which is purchased within this 17 state but without the local retailers' sales taxing jurisdiction of such city 18 or county, is hereby imposed by every city or county imposing a retailers' 19 sales tax. The rate of any such tax shall be equal to the difference between 20 the aggregate rate of all local retailers' sales tax rates imposed by all local 21 retailers sales taxing jurisdictions of the situs of such vehicle less the ag- 22 gregate rate of all local retailers' sales tax rates imposed by all local re- 23 tailers' sales taxing jurisdictions of the situs of the purchase of such ve- 24 hicle. Except as otherwise provided in this section, any city or county 25 imposing a compensating use tax is prohibited from administering such 26 tax locally, but shall utilize the services of the state department of revenue 27 to administer and enforce such tax. All laws and rules and regulations of 28 the state department of revenue relating to the Kansas compensating tax 29 shall apply to such local compensating use tax insofar as the same may be 30 made applicable. Such tax shall be collected by the county treasurer at 31 the time the vehicle is registered in this state following a sale occurring 32 within this state. Registration of such vehicle within a taxing jurisdiction 33 shall be deemed to constitute use or storage thereof for compensating tax 34 purposes and the residence or place of business of the applicant shall be 35 deemed to be the situs of such use or storage for purposes of the collec- 36 tion and distribution thereof. 37 (b) The secretary of revenue is authorized to administer and enforce 38 a city's or county's compensating use tax and to adopt such rules and 39 regulations necessary for the efficient and effective administration, en- 40 forcement and collection thereof. 41 (c) All revenue received by any county treasurer from a countywide 42 compensating use tax shall be apportioned among the county and each 43 city located in such county in the same manner as provided in K.S.A. 12- HB 2270

 1  192, and amendments thereto, for the apportionment of revenue received
 2  from a countywide retailers' sales tax, and all revenue received from a city
 3  compensating use tax shall be remitted at least quarterly to the treasurer
 4  of such city.
 5    Sec. 2.  This act shall take effect and be in force from and after its
 6  publication in the statute book.