Notice Number:12-01
Tax Type:Motor Vehicle Fuel Tax
Brief Description:2012 Motor Fuel Legislative Update
Approval Date:06/11/2012


NOTICE 12-01

2012 Motor Fuel Legislative Update

The following Bills were enacted by the 2012 Legislature:

Senate Bill 294
This bill was effective June 7, 2012, upon publication in the Kansas Register. The effective date referenced in the sections below is July 1, 2012. A summary of the bill is as follows:

Section 165 is regarding the Kansas Qualified Biodiesel Fuel Producer incentive. Quarterly deposits of $50,000 are scheduled for July 1 and October 1, 2012, and January 1 and April 1, 2013, based on funds available in the economic development initiatives fund. K.S.A. 79-34,156.

Section 166 indicates the Kansas Retail Dealer Incentive for renewable fuels and biodiesel remains ‘unfunded’ through June 30, 2014, therefore, no such incentive is provided through that date. K.S.A. 79-34,171.

Senate Bill 406
This bill is effective July 1, 2012. A summary of the bill is as follows:

Section 5 redesignates the Kansas essential fuels supply trust fund as the UST redevelopment fund. The funds credited maybe expended to reimburse eligible property owners for allowable expenses for permanent closure of an abandoned underground storage tank. The language also allows the Secretary of Health and Environment to conduct the same activities if the owner or operator of the underground storage tank has not been identified or is unable or unwilling to perform permanent closure. K.S.A. 65-34,131.

Section 6 indicates the property owner application and eligibility requirements. K.S.A. 65-34,132.

Section 8 abolishes the fund on July 1, 2024. K.S.A. 65-34,134.

House Bill 2455
This bill is effective July 1, 2012. The bill is as follows:

Section 1 directs the Department of Transportation to organize a discussion with the public and all interested stakeholders about the long-term feasibility of relying on the motor fuel tax as the primary mechanism of funding the state’s highway maintenance and construction program and as the major contributor of state aid to local government transportation budgets. The department is to report its findings and policy recommendations to the governor and the legislature by January 1, 2014.

This notice highlights only portions of the bills. For a detailed, full text copy of each bill, please visit the Kansas Legislature’s website at

To obtain additional copies of this or any other notice call the Kansas Department of Revenue’s voice mail forms request line at 785-296-4937 or download them from our web site: If you have any questions about this notice, please contact our Motor Fuel Tax Unit.
Motor Fuel Tax Correspondence
Docking State Office Building
915 SW Harrison St.
Topeka, KS 66625-8000
Tele: (785) 368-8222
Fax: (785) 296-4993
Notice 12-01
June 11, 2012

Date Composed: 06/11/2012 Date Modified: 06/11/2012