Session of 1998
By Committee on Assessment and 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-

SB 529


  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.