Session of 1997
HOUSE BILL No. 2270
By Committee on Taxation
9 AN ACT imposing a local compensating use tax by cities and counties
10 upon intrastate sales of certain vehicles.
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-
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.