House Bill 2592
May 21, 2001
Message to the House of Representatives of the State of Kansas:
Pursuant to Article 2, Section 14 of the Constitution of the State of Kansas, I am vetoing House Bill 2592. House Bill 2592 modifies the payment due date for mineral taxes from the 20th of the second month following the severing of the oil or gas to the 20th of the month following the severing of the gas or oil.
The modified filing deadline has a number of unintended and unduly burdensome consequences to the Department of Revenue and the taxpayers. At the time the tax return and payment are due, most taxpayers will lack the information necessary to file an accurate return. Additionally, many of the taxpayers will not have received payment for the oil or gas within this time limit. Consequently, House Bill 2592 will create problems with unpaid or overpaid accounts, ongoing collection efforts and administrative correspondence with taxpayers. The taxpayers would also continually be amending returns to correct returns filed before all the information was available.
Historically, tax enforcement and taxpayer compliance have not been problems for the oil and gas industry in Kansas. This bill could force taxpayers into untimely and inaccurate filings and create administrative burdens with no significant benefit to the state.
Given the extent of my concerns regarding the application of House Bill 2592 and the minimal benefits provided to the State of Kansas from its one-time revenue shift, I am vetoing this bill.