Session of 1999
By Representative Weiland

  9             AN  ACT relating to local compensating use taxation on motor vehicles;
10             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' 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. Any Except as otherwise provided in
33       this section, any city or county imposing a compensating use tax is pro-
34       hibited from administering or collecting such tax locally, but shall utilize
35       the services of the state department of revenue to administer, enforce
36       and collect such tax. Such tax shall be identical in its application and
37       exemptions therefrom to the Kansas compensating tax, and all laws and
38       rules and regulations of the state department of revenue relating to the
39       Kansas compensating tax shall apply to such local compensating use tax
40       insofar 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 2160


  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 trea-
13       surer 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.