Brief (1)
SB 54, as introduced, would amend KSA 2000 Supp. 55-508 and repeal KSA 2000 Supp. 55-509 to remove the requirement that a liquid-fuel carrier post a $1,000 bond in order to obtain a liquid-fuel carrier's license.
Background
The Director, Office of Policy and Research, Department of Revenue, testified that the bond requirement was initially imposed to provide security to the state for payment of liquid fuel taxes. The Director noted that under current law, the tax should have already been paid by the distributor before the carrier gets possession of the fuel.
The Director further noted that under current law, the bond serves no useful purpose. He said the requirement is an expense for liquid-fuel carriers and places an administrative burden on the Department in processing the bonds. He also said that the Department is not aware of any recent claims being filed against a liquid-fuel carrier's bond.
No other conferees testified on the bill.
The Department indicates passage of the bill would not affect state revenues.
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.cgi