Session of 1999
         
HOUSE BILL No. 2036
         
By Committee on Taxation
          
1-14
          
  9             AN  ACT reducing the tax imposed upon certain vehicles; amending
10             K.S.A. 79-5105 and repealing the existing section.
11      
12       Be it enacted by the Legislature of the State of Kansas:
13             Section  1. K.S.A. 79-5105 is hereby amended to read as follows: 79-
14       5105. (a) A tax is hereby levied upon every motor vehicle, as the same is
15       defined by K.S.A. 79-5101, and amendments thereto, in an amount which
16       shall be determined in the manner hereinafter prescribed, except that:
17       (1) (A) For 1995, the tax on any motorcycle shall not be less than $6 and
18       the tax on any other motor vehicle shall not be less than $12; and (B) the
19       tax on each motor vehicle the age of which is 15 years or older shall not
20       be more than $12; and (2) for For 1996, and each year thereafter: (A)
21       The tax on any motorcycle shall not be less than $12 and the tax on any
22       other motor vehicle shall not be less than $24, except as otherwise pro-
23       vided by clause (B) and (C); (B) the tax on any motorcycle the model year
24       of which is 1980 or earlier shall be $6 and the tax on any other motor
25       vehicle the model year of which is 1980 or earlier shall be $12; and (C)
26       if the tax on any motorcycle in 1995 was more than $6 but less than $12,
27       the tax shall be determined for 1996 and each year thereafter in the
28       manner hereinafter prescribed but shall not be less than $6, and if the
29       tax on any other motor vehicle in 1995 was more than $12 but less than
30       $24, the tax shall be determined for 1996 and each year thereafter in the
31       manner hereinafter prescribed but shall not be less than $12; and (2) the
32       minimum amounts established by paragraph (1) shall be reduced in ac-
33       cordance with the following: (A) By 25% in the year 2001; (B) by 50% in
34       the year 2002; (C) by 75% in the year 2003; and (D) by 100% in the year
35       2004.
36             (b) The amount of such tax on a motor vehicle shall be computed
37       by: (1) Determining the amount representing the midpoint of the values
38       included within the class in which such motor vehicle is classified under
39       K.S.A. 79-5102 or 79-5103, and amendments thereto, except that the
40       midpoint of class 20 shall be $21,000 plus $2,000 for each $2,000 or
41       portion thereof by which the trade-in value of the vehicle exceeds
42       $22,000; (2) if the model year of the motor vehicle is a year other than
43       the year for which the tax is levied, by reducing such midpoint amount

HB 2036

2

  1       by an amount equal to 16% in 1995, and all years prior thereto, and 15%
  2       in 1996, and all years thereafter, of the remaining balance for each year
  3       of difference between the model year of the motor vehicle and the year
  4       for which the tax is levied if the model year of the motor vehicle is 1981
  5       or a later year or (B) the remaining balance for each year of difference
  6       between the year 1980 and the year for which the tax is levied if the
  7       model year of the motor vehicle is 1980 or any year prior thereto; (3) by
  8       multiplying the amount determined after application of clause (2) above
  9       by 30% during calendar year 1995, 28.5% during the calendar year 1996,
10       26.5% during the calendar year 1997, 24.5% during the calendar year
11       1998, 22.5% during the calendar year 1999, and 20% during 20% during
12       the calendar year 2000, 15% during the calendar year 2001, 10% during
13       the calendar year 2002, 5% during the calendar year 2003, and 0% during
14       all calendar years thereafter, which shall constitute the taxable value of
15       the motor vehicle; and (4) by multiplying the taxable value of the motor
16       vehicle produced under clause (3) above by the county average tax rate.
17             (c) The "county average tax rate" means the total amount of general
18       property taxes levied within the county by the state, county and all other
19       taxing subdivisions levying such taxes within such county in the second
20       calendar year before the calendar year in which the owner's full registra-
21       tion year begins divided by the total assessed tangible valuation of prop-
22       erty within such county as of November 1 of such second calendar year
23       before the calendar year in which the owner's full registration year begins
24       as certified by the secretary of revenue, except that: (1) As of November
25       1, 1994, such rate shall be computed without regard to 11.429% of the
26       general property taxes levied by school districts pursuant to K.S.A. 72-
27       6431, and amendments thereto; (2) as of November 1, 1995, such rate
28       shall be computed without regard to 31.429% of the general property
29       taxes levied by school districts pursuant to K.S.A. 72-6431, and amend-
30       ments thereto; (3) as of November 1, 1996, such rate shall be computed
31       without regard to 54.286% of the general property taxes levied by school
32       districts pursuant to K.S.A. 72-6431, and amendments thereto; (4) as of
33       November 1, 1997, such rate shall be computed without regard to 70.36%
34       of the general property taxes levied by school districts pursuant to K.S.A.
35       72-6431, and amendments thereto; and (5) as of November 1, 1998, and
36       such date in all years thereafter, such rate shall be computed without
37       regard to the general property taxes levied by school districts pursuant to
38       K.S.A. 72-6431, and amendments thereto.
39             (d)  (1) There is hereby established in the state treasury the motor
40       vehicle tax replacement fund. All expenditures from such fund to the sev-
41       eral county treasurers shall be made by the 10th of every month upon
42       warrants of the director of accounts and reports pursuant to vouchers
43       approved by the secretary of revenue in the amount calculated pursuant

HB 2036

3

  1       to paragraph (2).
  2             (2) For the purpose of reimbursing taxing subdivisions for the
  3       amount of revenue lost because of the amendments by this act to subsec-
  4       tion (a) and (b), the secretary of revenue shall calculate and certify to the
  5       director of accounts and reports by the 10th day of every month such
  6       amount. For all applicable tax years, such amount shall be equal to the
  7       difference between the tax computed without regard to the amendments
  8       by this act to subsections (a) and (b) and the tax computed with regard
  9       to such amendments. Upon receipt of such certification, the director of
10       accounts and reports shall transfer the certified amount from the state
11       general fund to the motor vehicle tax replacement fund. In addition the
12       secretary of revenue shall calculate the amount to be reimbursed to each
13       county.
14             (3) All moneys received under the provisions of this subsection shall
15       be allocated and distributed to the appropriate taxing subdivision in the
16       same manner as provided in K.S.A. 79-5109, and amendments thereto.
17       Moneys received by taxing subdivisions from such taxes shall be appor-
18       tioned among and credited to tax levy funds in the same manner as pro-
19       vided in K.S.A. 79-5110, and amendments thereto. The county treasurer
20       shall prepare estimates and notify taxing subdivisions of distribution for
21       the purpose of budget preparation in the same manner as provided in
22       K.S.A. 79-5111, and amendments thereto. 
23       Sec.  2. K.S.A. 79-5105 is hereby repealed.
24         Sec.  3. This act shall take effect and be in force from and after its
25       publication in the statute book.