Notice Number:06-04
Tax Type:Motor Vehicle Fuel Tax
Brief Description:2006 Motor Fuel Legislative Update
Approval Date:06/22/2006


NOTICE 06-04

2006 Motor Fuel Legislative Update

The following Bills were enacted by the 2006 Legislature:

Senate Bill 388 establishes the Kansas Qualified Biodiesel Fuel Producer Incentive Fund, which allows for the payment of producer incentives for the production of biodiesel. The incentive is for the production of biodiesel fuel in the amount of $.30 for each gallon of biodiesel fuel sold by the producer. The Kansas qualified biodiesel fuel producer shall file for the production incentive beginning July 1, 2007, and quarterly thereafter.

Senate Bill 544 amends K.S.A. 79-3401 by including a definition for “E85 fuels”. K.S.A. 79-34,141 is amended and reduces the Motor Fuel tax rate on E85 fuels to $.17 per gallon. K.S.A. 79-3464c is amended to require distributors receiving or importing 50,000 gallons of motor fuel or more in a calendar month to file by electronic or magnetic media. This bill is effective January 1, 2007.

House Bill 2756 amends K.S.A. 65-34,117 and creates the Kansas Essential Fuels Supply Trust Fund. This bill provides for reimbursement to eligible owners of aboveground storage tanks or bulk plants for upgrade or permanent closure expenses for aboveground storage tanks or bulk plants if used for storage of petroleum products for resale. Reimbursement is subject to availability of moneys in the Kansas essential fuels supply trust fund and shall be administered by the Kansas Department of Health and Environment. This bill is effective July 1, 2006.

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
(785) 368-8222
Fax: (785) 296-2703
Notice 06-04
June 26, 2006

Date Composed: 06/22/2006 Date Modified: 06/22/2006