Dry Cleaning Environmental Surcharge
Department of Revenue
JOHN D. LaFAVER, SECRETARY
Office of the Secretary
June 6, 1995
Dry cleaning and laundry businesses in Kansas asked the 1995 Legislature to join them in improving the environment. Lawmakers answered with what is known today as the Kansas Dry cleaner Environmental Response Act. The Act was signed into law by Governor Bill Graves and goes into effect this year.
The act benefits Kansas by establishing a statewide trust fund to help pay for cleanup of contaminated property. Kansas is only the second state in the nation to implement a fund of this type. The Kansas Department of Revenue maintains the fund, overseeing collection of an environmental surcharge and solvent fee.
1. A two percent environmental surcharge is applied to customers for dry cleaning services. Most customers currently exempt from paying sales tax on dry cleaning services are exempt from the environmental surcharge.
2. A user fee is applied to all dry cleaning solvents.
Dry cleaners and laundry retailers must collect the customer surcharge and account for the user fee beginning July 1, 1995.
The Department of Revenue will mail a form to dry cleaners and laundry businesses prior to each reporting period. Retailers should use the form to remit the surcharge and fee. Instructions on how to fill out the form are enclosed. The reporting periods and due dates for the surcharge and fee are the same as for the business' sales tax return. All environmental surcharges and fees collected are credited to the cleanup fund.
Members of the industry must also adopt measures that will help prevent pollution in the future. The Kansas Department of Health and environment enforces environmental procedures and required by the Act.
The Kansas Department of Revenue congratulates the dry cleaning industry for taking the lead in helping protect the environment. Preservation of soil and groundwater is costly. Dry cleaning facilities and laundry retailers should be applauded for accepting the responsibility of sharing cleanup costs and preventing future environmental harm.
John d. LaFaver
Secretary of Revenue
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