KS Notice 08-1125 Motor Vehicle Fuel Tax 2008-11-25

What was Kansas's petroleum-products inspection fee on gasoline and diesel beginning January 1, 2009?

Short answer: Kansas reduced the petroleum-products inspection fee on gasoline and diesel to $0.0135 per barrel effective January 1, 2009, down from the $0.015 statutory rate stated in K.S.A. 55-426. For this fee, 50 gallons counted as one barrel. Manufacturers, importers, exporters, or distributors first selling, offering for sale, using, or delivering the fuel were within the statute. The Secretary of Agriculture could reduce the fee when it produced more revenue than needed and restore it, in whole or part up to the statutory rate, when the reduced fee produced insufficient revenue.

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This page answers the general question as of 2008. Ezel answers yours, under current Kansas tax law, with citations.

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 reflects the statutes, fees, and Department interpretation applicable when published; later law or guidance 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.

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Plain-English summary

Kansas reduced the Petroleum Products Inspection Fee on gasoline and diesel from the statutory $0.015 per barrel stated in K.S.A. 55-426 to $0.0135 per barrel, effective January 1, 2009. For this fee, 50 gallons counted as one barrel.

K.S.A. 55-426 imposed the fee on the manufacturer, importer, exporter, or distributor first selling, offering for sale, using, or delivering gasoline or diesel, including government sales.

The statute also allowed the Secretary of Agriculture to adjust the fee based on program revenue. The Secretary could reduce it when the fee generated more money than the legally designated purposes required, and could restore it in whole or part — but not above the statutory rate — if the reduced fee no longer generated enough revenue.

What this means for you

Fuel manufacturers and distributors

For periods beginning January 1, 2009 under this notice, calculate the inspection fee at $0.0135 per 50-gallon barrel of gasoline or diesel. Confirm later notices before applying that historical rate to another period.

Fee-rate monitoring

The rate was administratively adjustable. Businesses needed to watch for later notices because the Secretary could restore all or part of the fee if revenues became insufficient.

Common questions

Q: What was the reduced rate?
A: $0.0135 per barrel of gasoline or diesel.

Q: How many gallons counted as a barrel?
A: Fifty gallons for purposes of K.S.A. 55-426.

Q: When did the reduction take effect?
A: January 1, 2009.

Q: Could the fee later increase again?
A: Yes. The Secretary could restore it in whole or part, up to the statutory rate, if the reduced fee produced insufficient revenue.

Citations and references

K.S.A. 55-426 — inspection-fee amount, 50-gallon barrel definition, liable parties, and authority to reduce or restore the fee.
2007 House Bill 2145 — granted the Secretary authority to reduce and restore the fee.

Subject

Petroleum Products Inspection Fee Reduction

Source

Landing page: Kansas Department of Revenue Policy Information Library
Original document: Notice 08-1125

Original ruling text

Notice
Notice Number:
Tax Type: Motor Vehicle Fuel Tax
Brief Description: Petroleum Products Inspection Fee Reduction
Keywords:
Approval Date: 11/25/2008

Body:
KANSAS DEPARTMENT OF REVENUE

                                               NOTICE

TO: All Kansas Petroleum Products Inspection Fee Filers
DATE: November 25, 2008

The 2007 Legislature passed House Bill 2145 which gives the Secretary of Agriculture the authority to reduce and
restore the Petroleum Products Inspection Fee.

K.S.A. 55-426. Fees, amount. (a) The director of taxation is entitled to demand and receive from the manufacturer,
importer, exporter or distributor first selling, offering for sale, using or delivering gasoline or diesel including
government sales, the sum of $.015 per barrel. For the purposes of this section 50 gallons is to be considered and
counted as a barrel.
(b) The secretary is hereby authorized and empowered to reduce the fees and charges provided by subsection (a) for
any period deemed justified whenever the secretary shall determine that such fees and charges being paid into the
state treasury as required by law are yielding more revenue than is required for the purposes to which such fees and
charges are devoted by law. In the event that the secretary determines that sufficient revenues are not being produced
by such reduced fees and charges, the secretary is hereby authorized and empowered to restore the fees and charges in
full or in part to a rate not exceeding that provided in subsection (a) that will in the secretary's judgment produce
sufficient revenue for the purposes to which such fees and charges are devoted by law.

This is to advise that effective January 1, 2009 the Petroleum Products Inspection
Fee has been reduced to $.0135 per barrel on gasoline or diesel.
Should you have any questions regarding this matter or require additional information, please contact this office at
785-368-8222 or write the Motor Fuel Tax Section, Kansas Department of Revenue, 915 SW Harrison St, Topeka,
Kansas 66625-8000.

Date Composed: 11/25/2008 Date Modified: 11/25/2008

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