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Ezel / Tax Rulings / KS
KS Notice 09-01 Kansas Motor Fuel Tax 2009-01-26

Was Kansas's new retail dealer incentive for renewable fuels and biodiesel funded for fiscal years 2009 and 2010?

Short answer: The incentive existed, but its fund had received no money. House Bill 2145 created the Kansas retail dealer incentive for renewable fuels and biodiesel effective January 1, 2009. By January 26, 2009, the Department had been told that the fund had received no money to pay incentives, and the governor had recommended that it not be funded for fiscal years 2009 or 2010. The notice promised additional information as it became available; it did not say that the Legislature had already enacted the governor's recommendation.

Apply this to your situation

This page answers the general question as of 2009. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2009
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: public guidance the Department issues to explain Kansas tax law, most often a newly enacted statute. It states the Department's general interpretation and administration of the law; it does not have the force of law and is not a private ruling issued to any one taxpayer. It reflects the statutes, regulations, and rates in effect on its issue date and may since have been amended or superseded by a later notice or law change, so confirm it is still current before relying on it. Kansas state and local sales and use taxes are administered centrally by the Department, so there is no self-collected home-rule city tax outside its scope. 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 had created a retail dealer incentive for renewable fuels and biodiesel, effective January 1, 2009, through 2007 House Bill 2145. But the Department reported that the Retail Dealer Incentive Fund had received no money with which to pay the incentive.

The governor had recommended that the incentive not be funded for fiscal years 2009 or 2010. The notice did not say that this recommendation had already become law; it said the Department would provide more information as it became available.

What this means for you

Renewable-fuel and biodiesel retailers

Creating an incentive program did not guarantee that money was available to pay claims. As of this January 26, 2009 notice, the fund had no money and the governor was recommending no funding for the two stated fiscal years.

Historical status only

This notice describes the funding situation and recommendation on its issue date. Later legislation or notices may have changed the program, so confirm the applicable period before drawing a current conclusion.

Common questions

Q: Did Kansas create a retail dealer incentive for renewable fuels and biodiesel?
A: Yes. The notice says 2007 House Bill 2145 created it effective January 1, 2009.

Q: Was money available in the incentive fund when this notice was issued?
A: No. The Department said it had been notified that the fund had received no money with which to pay the incentive.

Q: Had the incentive already been legally defunded for fiscal years 2009 and 2010?
A: The notice says the governor had recommended no funding for those fiscal years. It does not say that the recommendation had already been enacted.

Citations and references

  • 2007 House Bill 2145 — created the Kansas retail dealer incentive for renewable fuels and biodiesel, effective January 1, 2009.

Subject

Retail Dealer Incentive Funding

Source

Original ruling text

Kathleen Sebelius, Governor
Joan Wagnon, Secretary

                                                  www.ksrevenue.org

                                NOTICE 09-01

                       RETAIL DEALER INCENTIVE
                            January 26, 2009

The 2007 Legislature passed House Bill 2145 which created the Kansas retail dealer
incentive for renewable fuels and biodiesel, effective January 1, 2009.
The Kansas Department of Revenue has been notified that the Retail Dealer Incentive
Fund has not received any funds with which to pay the incentive, and the Governor has
recommended that this incentive not be funded for fiscal years 2009 or 2010. Additional
information will be provided as it becomes available.

If you have any questions please contact us at the address or phone number listed below.

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

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