Brief⁽¹⁾

S.B. 418 would authorize a one-time credit for motor fuel distributors who receive more than 50,000 gallons in a month and who file electronically. The credit would be $8,000 if the distributor first files electronically on or before July 1, 1999; $6,400 if the distributor first files electronically on or before July 1, 2000; and $4,000 if the distributor first files electronically after July 1, 2000 and before June 30, 2001.

Also, the Secretary of Revenue would be required to adopt rules and regulations establishing the criteria and procedures for claiming the tax credit.

Background

This bill was requested and supported by the Department of Revenue. As introduced, the bill would have granted the full credit for first filing electronically by July 1, 1998, and reduced credits for filing by July 1, 1999 and July 1, 2000. The Secretary would have been authorized to promulgate rules and regulations. At its hearing the bill also was supported conditionally by representatives of the Kansas Cooperative Council, Kansas Oil Marketers, and an oil marketer. The conferees requested a longer deadline.

The Committee amended the bill to allow an additional year for each phase of the credit, and to require the Secretary of Revenue to adopt rules and regulations.

Enactment of S.B. 418 would reduce motor fuel tax receipts by as much as $3.6 million, if all of the 450 distributors who might be required to file electronically qualify for the largest credit. The reduction would be spread across three fiscal years--FY 1998, FY 1999, and FY 2000. Most of this reduction would occur in FY 1999.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.