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 9  AN ACT concerning compensating use taxation; concerning the collection
10    thereof; amending K.S.A. 12-198 and repealing the existing section.
11
12  Be it enacted by the Legislature of the State of Kansas:
13    New Section 1.  All sales of vehicles required to be registered under
14  the provisions of article 1 of chapter 8 of the Kansas Statutes Annotated,
15  and amendments thereto, the sale of which is subject to taxation under
16  the Kansas retailers' sales tax act, shall be exempt from city and county-
17  wide retailers' sales taxes.
18    Sec. 2.  K.S.A. 12-198 is hereby amended to read as follows: 12-198.
19    (a) A compensating use tax for the privilege of using or storing within a
20  city or county any vehicle which is required to be registered under the
21  provisions of article 1 of chapter 8 of the Kansas Statutes Annotated, and
22  amendments thereto, or any vessel, as defined by K.S.A. 82a-902 82a-
23  802, and amendments thereto, is hereby imposed by every city or county
24  imposing a retailers' sales tax. In the case of such vehicles, such tax shall
25  be collected by the county treasurer at the time the vehicle is registered
26  in this state following a sale occurring within or without this state. Reg-
27  istration of such vehicle within a taxing jurisdiction shall be deemed to
28  constitute use or storage thereof for compensating tax purposes and the
29  residence or place of business of the applicant shall be deemed to be the
30  situs of such use or storage for purposes of the collection and distribution
31  thereof. The rate of any such tax shall be fixed at the same rate as such
32  city's or county's retailers' sales tax. Except as otherwise provided in this
33  section, any city or county imposing a compensating use tax is prohibited
34  from administering or collecting such tax locally, but shall utilize the serv-
35  ices of the state department of revenue to administer, enforce and collect
36  such tax. Such tax shall be identical in its application and exemptions
37  therefrom to the Kansas compensating tax, and all laws and rules and
38  regulations of the state department of revenue relating to the Kansas
39  compensating tax shall apply to such local compensating use tax insofar
40  as the same may be made applicable.
41    (b)  The secretary of revenue is authorized to administer, enforce and
42  collect a city's or county's compensating use tax and to adopt such rules
43  and regulations necessary for the efficient and effective administration,
HB 2242
                                     

 1  enforcement and collection thereof. The state director of taxation shall
 2  cause such taxes to be collected within the boundaries of such taxing
 3  subdivision at the same time and in the same manner provided for the
 4  collection of the state compensating use tax. All moneys collected by the
 5  director of taxation pursuant to the provisions of this section shall be
 6  credited to the city and county compensating use tax fund, which fund is
 7  hereby established in the state treasury. Any refund due on any city's or
 8  county's compensating use tax collected pursuant to this section shall be
 9  paid out of the sales tax refund fund and reimbursement to such fund
10  shall be made by the director of taxation from collections of local com-
11  pensating use tax revenue. All moneys collected pursuant to this section
12  for a city or county shall be remitted at least quarterly by the state treas-
13  urer to the treasurer of such city or county.
14    (c)  All revenue received by any county treasurer from a countywide
15  compensating use tax shall be apportioned among the county and each
16  city located in such county in the same manner as provided in K.S.A. 12-
17  192, and amendments thereto, for the apportionment of revenue received
18  from a countywide retailers' sales tax.
19    Sec. 3.  K.S.A. 12-198 is hereby repealed.
20    Sec. 4.  This act shall take effect and be in force from and after its
21  publication in the statute book.