HOUSE BILL No. 3032*
An Act imposing a local compensating use tax upon the intrastate sale of motor vehicles.
Section 1. (a) A compensating use tax for the privilege of using or
storing within a city or county any vehicle which is required to be regis-
tered under the provisions of article 1 of chapter 8 of the Kansas Statutes
Annotated, and amendments thereto, and which is purchased within this
state but without the local retailers' sales taxing jurisdiction of such city
or county, is hereby imposed by every city or county imposing a retailers'
sales tax. The rate of any such tax shall be equal to the difference between
the aggregate rate of all local retailers' sales tax rates imposed by all local
retailers sales taxing jurisdictions of the situs of such vehicle less the ag-
gregate rate of all local retailers' sales tax rates imposed by all local re-
tailers' sales taxing jurisdictions of the situs of the purchase of such ve-
hicle. Except as otherwise provided in this section, any city or county
imposing a compensating use tax is prohibited from administering such
tax locally, but shall utilize the services of the state department of revenue
to administer and enforce such tax. All laws and rules and regulations of
the state department of revenue relating to the Kansas compensating tax
shall apply to such local compensating use tax insofar as the same may be
made applicable. Such tax shall be collected by the county treasurer at
the time the vehicle is registered in this state following a sale occurring
within this state. Registration of such vehicle within a taxing jurisdiction
shall be deemed to constitute use or storage thereof for compensating tax
purposes and the residence or place of business of the applicant shall be
deemed to be the situs of such use or storage for purposes of the collec-
tion and distribution thereof.
(b) The secretary of revenue is authorized to administer and enforce
a city's or county's compensating use tax and to adopt such rules and
regulations necessary for the efficient and effective administration, en-
forcement and collection thereof.
(c) All revenue received by any county treasurer from a countywide
compensating use tax shall be apportioned among the county and each
city located in such county in the same manner as provided in K.S.A. 12-
192, and amendments thereto, for the apportionment of revenue received
from a countywide retailers' sales tax, and all revenue received from a city
compensating use tax shall be remitted at least quarterly to the treasurer
of such city.
Sec. 2. This act shall take effect and be in force from and after its
publication in the statute book.
Approved May 16, 2002.
Date Composed: 10/10/2002 Date Modified: 10/10/2002