Session of 1998
By Committee on Taxation
            9             AN ACT relating to sales taxation; concerning the taxation of motor ve-
10             hicles; 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' taxes.
18           New Sec. 2. On January 15 and on July 15 of each year, beginning
19       with calendar year 1999, the director of accounts and reports shall make
20       transfers in equal amounts which in the aggregate equal the total amount
21       of city and county retailers sales and compensating use taxes imposed
22       prior to January 1, 1999, and collected upon the sale or use of motor
23       vehicles within this state during calendar year 1998 as certified by the
24       secretary of revenue. In the event any such tax expires, the rate thereof
25       is reduced or is repealed, the secretary of revenue shall report such in-
26       formation to the state treasurer necessary to adjust the amount of such
27       transfers. The state treasurer shall apportion and pay such amounts to the
28       several city and county treasurers on January 15 and on July 15 of each
29       year in accordance with the amount certified by the secretary of revenue
30       to have been collected upon all such sales or use within the taxing juris-
31       diction of each of such treasurers during calendar year 1998. In accord-
32       ance with information reported by the secretary of revenue, the state
33       treasurer shall reduce or eliminate any such payment to a city or county
34       in the calendar year next following the year in which any such tax expired,
35       the rate thereof was reduced or was repealed. All transfers made in ac-
36       cordance with the provisions of this section shall be considered to be
37       demand transfers from the state general fund.
38           Sec. 3. K.S.A. 12-198 is hereby amended to read as follows: 12-198.
39       (a) A compensating use tax for the privilege of using or storing within a
40       city or county any vehicle which is required to be registered under the
41       provisions of article 1 of chapter 8 of the Kansas Statutes Annotated, and
42       amendments thereto, or any vessel, as defined by K.S.A. 82a-902 82a-
43       802, and amendments thereto, is hereby imposed by every city or county

HB 2973


  1       imposing a retailers' sales tax. The rate of any such tax shall be fixed at
  2       the same rate as such city's or county's retailers' sales tax. Any city or
  3       county imposing a compensating use tax is prohibited from administering
  4       or collecting such tax locally, but shall utilize the services of the state
  5       department of revenue to administer, enforce and collect such tax. Such
  6       tax shall be identical in its application and exemptions therefrom to the
  7       Kansas compensating tax, and all laws and rules and regulations of the
  8       state department of revenue relating to the Kansas compensating tax shall
  9       apply to such local compensating use tax insofar as the same may be made
10       applicable.
11           (b) The secretary of revenue is authorized to administer, enforce and
12       collect a city's or county's compensating use tax and to adopt such rules
13       and regulations necessary for the efficient and effective administration,
14       enforcement and collection thereof. The state director of taxation shall
15       cause such taxes to be collected within the boundaries of such taxing
16       subdivision at the same time and in the same manner provided for the
17       collection of the state compensating use tax. All moneys collected by the
18       director of taxation pursuant to the provisions of this section shall be
19       credited to the city and county compensating use tax fund, which fund is
20       hereby established in the state treasury. Any refund due on any city's or
21       county's compensating use tax collected pursuant to this section shall be
22       paid out of the sales tax refund fund and reimbursement to such fund
23       shall be made by the director of taxation from collections of local com-
24       pensating use tax revenue. All moneys collected pursuant to this section
25       for a city or county shall be remitted at least quarterly by the state trea-
26       surer to the treasurer of such city or county.
27           (c) All revenue received by any county treasurer from a countywide
28       compensating use tax shall be apportioned among the county and each
29       city located in such county in the same manner as provided in K.S.A. 12-
30       192, and amendments thereto, for the apportionment of revenue received
31       from a countywide retailers' sales tax.
32           Sec. 4. K.S.A. 12-198 is hereby repealed.
33           Sec. 5. This act shall take effect and be in force from and after Jan-
34       uary 1, 1999, and its publication in the statute book.