Questions and Answers
Vehicle Rental Excise Tax
Kansas Retailers' Sales Tax
VEHICLE RENTAL EXCISE TAX #109 (8/91)
STATUS: TAXABLE, UNLESS SEPARATELY STATED ON THE INVOICE
BASIS: An excise tax shall be imposed at the rate of 3.5% on the gross receipts received from the rental or lease of motor vehicles rented or leased for a period of time not exceeding 28 days. Motor vehicles that are subject to the vehicle rental excise tax shall be exempt from personal property taxes imposed on motor vehicles pursuant to K.S.A. 79-5101
The vehicle rental excise tax generally applies to the gross receipts received from the renting or leasing of automobiles, busses, trucks, truck tractors, recreational vehicles and motorcycles. The tax does not apply to the renting or leasing of farm machinery and equipment, trailers, road rollers, fork lifts, mining equipment and non-highway construction equipment.
For the excise tax to be exempt from Kansas retailers' sales tax, the vehicle rental excise tax must be separately stated on the invoice, sales ticket or billing document. Vehicle rental excise taxes that are absorbed or included in the retailer's selling price and not separately identified on the billing document will be subject to the Kansas retailers' sales tax.
NOTICE, issued May 1991. TO: Motor Vehicle Rental Companies
Return to KSA Listing