Memorandum

Identifying Information:Personal Property Assessment on Vehicles Purchased in Another State
Tax Type:Vehicles
Brief Description:Personal Property Assessment on Vehicles Purchased in Another State
Keywords:
Effective Date:10/02/1997



Body:
State of Kansas
Department of Revenue
Division of Vehicles



M E M O R A N D U M


TO: Kansas County Treasurers and Kansas County Appraisers

FROM: Betty McBride, Director of Vehicles
Mark Beck, Director of Property Valuation

DATE: October 2, 1997

RE: Personal Property Assessment on Vehicles Purchased in Another State


The following policies and procedures have been set forth and adopted by the Division of Vehicles and Property Valuation Division regarding assessment and collection of personal property tax on motor vehicles purchased in another state:
PURCHASE OF VEHICLES IN ANOTHER STATE BY A KANSAS RESIDENT

A Kansas resident who purchases a vehicle in another state and either stores, garages or allows the vehicle to be operated outside of Kansas for more than thirty (30) days past the purchase date must provide satisfactory proof to the County Treasurer that the vehicle qualifies for exemption from Kansas personal property taxes during that period. If satisfactory documentation is not produced, personal property taxes will be assessed on the vehicle based upon the purchase/notary date indicated on the title assignment. Penalties and interest will also be included with the assessment of taxes. If satisfactory proof is provided to the County Treasurer that the vehicle meets the exemption requirement, a date of entry may be used by the County Treasurer at the time of Kansas registration.

Satisfactory proof of exemption may include, but is not limited to the following:

1. An out-of-state registration receipt;
2. Insurance documentation indicating the date insurance coverage became effective and indicating the location of the vehicle;
3. Verification of mileage may be requested. The mileage on the vehicle at the application date should be similar to the mileage shown on the notary or purchase date on the assigned title, after taking into account the number of miles from the point of the out-of-state purchase to the residence in Kansas;
4. Proof that all applicable vehicle taxes have been paid on the vehicle in another state in which the vehicle was stored/garaged;
5. Correspondence or documentation from the tax jurisdiction of the state in which the vehicle has been purchased indicating that there is no tax liability on the vehicle; or
6. Lienholder records that indicate the location of the vehicle.

If the applicant cannot provide satisfactory proof at the time of registration that the vehicle was stored, garaged and/or registered in another state, tax assessment will be made based on the purchase/notary date on the assigned title.
OUT-OF-STATE VEHICLE OWNERS MOVING TO KANSAS

Vehicles Titled by Owners Moving into Kansas

Vehicle owners moving into Kansas from another state who have previously titled their vehicle in that state will be assessed personal property taxes on their vehicle(s) based upon the “Date of Entry” of the vehicle into Kansas. The MVE-1 date, (date of inspection performed by the Kansas Highway Patrol), may be used as a precedent to establish the “Date of Entry” or tax assessment date.

Newly Purchased Vehicles by Out-of-State Residents Moving to Kansas

Out-of-State residents who have recently acquired but have not titled and registered the vehicle in their name and are moving to Kansas follow the same procedure for the out-of-state vehicle owners moving to Kansas.
VEHICLES STORED IN KANSAS

Vehicles stored in Kansas that have not been titled and/or registered in this state within thirty (30) days are subject to assessment of personal property taxes, penalty and interest even though the vehicle has not been titled and registered.

If the vehicle is not operated for one (1) full registration year, (based on renewal month), a Non-Use Affidavit may be utilized for the registration and registration penalties. The Non-Use Affidavit does not exempt any personal property taxes, penalties and interest. Property taxes are calculated from the purchase/notary date.

EXAMPLES:

When the assessment and collection of personal property tax due?

Scenario #1:
Kansas resident purchases a vehicle out-of-state, providing satisfactory proof the vehicle was stored/garaged out-of-state and no tax was due in the other state.

Tax due – MVE –1 date/date of entry as determined by the appraiser/treasurer.

Scenario #2:
Kansas resident purchases a vehicle in Kansas, but stored/garaged vehicle in another state. Kansas resident provides satisfactory proof the vehicle was stored/garaged out-of-state and tax was not due in the other state.

Tax due – entry date into Kansas or MVE-1 date as determined by the appraiser/treasurer.

Scenario #3:
Kansas resident purchases a vehicle out-of-state and cannot provide satisfactory proof that the vehicle was stored/garaged out-of-state and tax is due.

Tax due – notary date/purchase date.

Scenario #4:
Kansas resident purchases a vehicle in Kansas and cannot provide satisfactory proof the vehicle was stored/garaged in another state and tax is due.

Tax due – notary date.


Date Composed: 04/21/1998 Date Modified: 10/09/2001