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Minutes for SB367 - Committee on Taxation
Short Title
Sales taxation; treatment of coupons; certain cash rebates on sales or leases of new motor vehicles.
Minutes Content for Thu, Apr 5, 2018
Mr. Wells provided an overview on SB367, stating it would amend the definition of sales or selling price in the sales tax law. Commencing July 1, 2019 the sales or selling price would include cash rebates granted by the manufacturer to a purchaser or leasee of a new motor vehicle if paid directly to the retailer. Mr. Wells stood for questions from the Committee.
Kathleen Smith, Department of Revenue provided an overview on SB367. The National Auto Dealers Association have reported there are approximately 105,000 new cars sold in Kansas per year and the assumption was made 50 percent of the sales included a $1,250 rebate that would equate to a reduction in state sales tax collections of around $4 million. The Department of Revenue estimates this would be $3.3 million to the State General Fund and $0.7 million to the State Highway Fund for FY2020. Ms. Smith stood for questions from the Committee.
Don McNeely, President Kansas Automobile Dealers Association testified as a proponent for SB367. (Attachment 5)
Meeting adjourned at 4:38 PM.
