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Minutes for HB2571 - Committee on Taxation
Short Title
Providing a deduction from sales or compensating use tax when selling and buying different motor vehicles within 180 days.
Minutes Content for Wed, Feb 9, 2022
Chairperson Smith opened the hearing on HB2571.
Adam Siebers, Assistant Revisor, provided an overview on HB2571 and stood for questions from Committee members. (Attachment 1)
Kathleen Smith, Department of Revenue, provided an overview on the fiscal note for HB2571 stating the department was not able to find data at this point to provide a fiscal estimate but did state the bill would reduce state and local sales tax revenues.
Proponent:
Representative Turner, House District 28, testified as a proponent for HB2571 noting the bill equalizes unequal sales tax treatment when purchasing a new vehicle to replace an old vehicle. The purchaser would be required to pay sales or use tax on the difference in price on a vehicle when an individual sells a vehicle and then purchases a new or used vehicle within 180 days. (Attachment 2) Representative Turner stood for questions from Committee members.
Testimony was provided by the following as proponents for HB2571:
Adam and Kelli Kerr, Leawood Kansas, (Attachment 3)
Jeff Wilson and Amy Espey-Wilson, Overland Park, (Attachment 4)
Ken Lauderdale, Leawood, Kansas, (Attachment 5)
Pat Foley, Leawood, Kansas, (Attachment 6)
Neutral:
Don L. McNeely, Kansas Automobile Dealers Association, testified as neutral to HB2571 to provide some historical comments regarding the proposed bill. Mr. McNeely noted tying the actual selling price for the casual or isolated sale of a motor vehicle must be entered into the State's motor vehicle database in order to assure the appropriate sales tax liability is incurred for the purchaser and the correct sales tax credit or refund is calculated for the seller of the vehicle. (Attachment 7). Mr. McNeely stood for questions from Committee members.
Chairperson Smith closed the hearing on HB2571.
Chairperson Smith adjourned the meeting at 4:10 p.m.
