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Ezel / Tax Rulings / KS
KS Notice 06-07 Motor Vehicle Fuel Tax 2006-10-31

Could Kansas distributors and retailers recover the tax difference on E-85 inventory held when the rate fell on January 1, 2007?

Short answer: Yes. When Kansas reduced the E-85 motor-fuel tax from $0.24 to $0.17 per gallon on January 1, 2007, it allowed a $0.07-per-gallon credit or refund for E-85 inventory on hand that day on which the $0.24 tax had already been paid. Form MF-220 had to be completed and postmarked by January 25, 2007, with a separate request for each license number. Distributors received a credit memo for their next monthly return; retailers received a refund in approximately four weeks.

Apply this to your situation

This page answers the general question as of 2006. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2006
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Notice providing general public guidance, not a private ruling issued to one taxpayer. It does not have the force of law and describes a historical E-85 inventory adjustment and filing deadline for January 2007; later law, rates, or forms may change the result. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Kansas reduced the motor-vehicle fuel tax on E-85 from $0.24 to $0.17 per gallon effective January 1, 2007. Businesses holding E-85 inventory on that date could recover the $0.07-per-gallon difference if the higher $0.24 tax had already been paid on those gallons.

The claim rules were strict:

  • use Form MF-220, Credit/Refund Request (E-85 Inventory);
  • complete a separate request for each license number; and
  • postmark the form on or before January 25, 2007.

Distributors received a credit memo to apply to the next monthly return. Retailers received a refund in approximately four weeks.

What this means for you

This was a one-time inventory adjustment tied to the January 1, 2007 rate change. Eligibility depended on inventory on that date, prior payment at $0.24, a timely MF-220, and a separate filing for each license.

Common questions

Q: How much was the credit or refund?
A: $0.07 per gallon of qualifying E-85 inventory.

Q: What inventory qualified?
A: E-85 on hand January 1, 2007 on which Kansas tax of $0.24 per gallon had already been paid.

Q: What was the deadline?
A: Form MF-220 had to be postmarked by January 25, 2007.

Q: How was relief paid?
A: Distributors received a credit memo; retailers received a refund in approximately four weeks.

Citations and references

  • 2006 Senate Bill 544 — E-85 rate reduction and inventory adjustment.
  • Form MF-220 — Credit/Refund Request (E-85 Inventory).

Subject

Credit/Refund Requests E-85 Inventory January 1, 2007

Source

Original ruling text

Notice
Notice Number: 06-07
Tax Type: Motor Vehicle Fuel Tax
Brief Description: Credit/Refund Requests E-85 Inventory January 1, 2007
Keywords:
Approval Date: 10/31/2006

Body:
Kansas Department of Revenue
Division of Taxation

                                                     NOTICE 06-07

                                               Credit/Refund Request
                                           E-85 Inventory January 1, 2007

Pursuant to 2006 Senate Bill 544, the motor-vehicle fuels tax rate on E-85 will be reduced to $.17 per gallon effective
January 1, 2007. A $.07 per gallon motor-vehicle fuel tax credit/refund is available for the number of gallons of E-85
in inventory on January 1, 2007 and which, the Kansas motor-vehicle fuel tax of $.24 per gallon was previously paid.

To obtain a copy of the Credit/Refund Request (E-85 Inventory) Form MF-220, please visit our website at
www.ksrevenue.org. Choose ‘Your Business’, ‘Motor Fuel’, ‘Forms and Publications’. Or, you may contact us at the
telephone number or address below to request a copy of the form.

The Credit/Refund Request form must be completed and postmarked on or before January 25, 2007 to receive a
refund of the $.07 per gallon tax difference for E-85 in inventory on January 1, 2007. A separate request must be
completed for each license number.

Distributors will receive a credit memo to be applied to the next monthly return. Retailers will receive a refund in
approximately 4 weeks.

TAXPAYER ASSISTANCE
To obtain additional copies of this or any other notice call the Kansas Department of Revenue’s voice mail forms request line at 785-
296-4937 or download them from our web site: www.ksrevenue.org. If you have any questions about this notice, please contact our
Motor Fuel Tax Unit.

                                             Motor Fuel Tax Correspondence
                                              Docking State Office Building
                                                  915 SW Harrison St.
                                                 Topeka, KS 66625-8000
                                                     (785) 368-8222
                                                  Fax: (785) 296-4993

Notice 06-07
Dec 22, 2006

Page 2

Date Composed: 10/31/2006 Date Modified: 10/31/2006

                                            Return to KSA Listing

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