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Ezel / Tax Rulings / KS
KS Notice 09-02 Kansas Motor Fuel Tax 2009-02-25

What reporting and payment changes applied to Kansas agricultural ethyl alcohol producer incentives under the revised regulations?

Short answer: Kansas changed the agricultural ethyl alcohol producer incentive from quarterly payments to one annual payment on a July 1-June 30 fiscal-year basis. Revised K.A.R. 92-26-4 clarified that every ethanol producer had to file quarterly reports and required additional report information. A producer that filed a quarterly report late was barred from seeking one quarter of any incentive payment otherwise due for that fiscal year. Revised K.A.R. 92-26-1 added the July 1-through-June 30 definition of 'fiscal year.'

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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 It reflects the statutes, regulations, and rates in effect on its issue date and may since have been amended or superseded by a later notice or law change, so confirm it is still current before relying on it.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 revised two regulations governing its Agricultural Ethyl Alcohol Producer Incentive.

K.A.R. 92-26-1 added a definition of fiscal year: July 1 through the following June 30.

K.A.R. 92-26-4 made three operational changes:

  • It clarified that all ethanol producers must file quarterly reports.
  • It changed incentive payments from quarterly to annually, using the fiscal-year basis.
  • It required additional information in the quarterly reports.

The late-filing consequence was significant. If a quarterly report was not filed on time, the producer was barred from seeking one quarter of any payment due from the agricultural ethyl alcohol producer's fund for that fiscal year.

What this means for you

Ethanol producers seeking the incentive

Quarterly reporting remained mandatory even though payments moved to an annual schedule. Missing a quarterly deadline could cost one quarter of the year's otherwise available incentive payment.

Calendar and recordkeeping

The program's fiscal year ran from July 1 through June 30. Producers needed records capable of supporting each quarterly filing within that fiscal-year cycle.

Common questions

Q: Were incentive payments still made quarterly?
A: No. The revised rule changed the payment from quarterly to annually on a fiscal-year basis.

Q: Did producers still have to file quarterly reports?
A: Yes. The notice says the rule clarified that all ethanol producers must file them.

Q: What happened if a quarterly report was late?
A: The producer was barred from seeking one quarter of any payment due from the incentive fund for that fiscal year.

Q: What fiscal year did the rule use?
A: July 1 through the following June 30.

Citations and references

  • K.A.R. 92-26-1 — definition of fiscal year.
  • K.A.R. 92-26-4 — quarterly reporting, annual payment, required information, and late-filing consequence.

Subject

Agricultural Ethyl Alcohol Producer Incentive Regulation Changes

Source

Original ruling text

KANSAS DEPARTMENT OF REVENUE
DIVISION OF TAXATION

                            NOTICE 09-02

AGRICULTURAL ETHYL ALCOHOL PRODUCER INCENTIVE

                           February 25, 2009

Kansas Administrative Regulations 92-26-1 and 92-26-4 have been modified for
the Agricultural Ethyl Alcohol Producer Incentive.

K.A.R. 92-26-1. Definitions: The definition of fiscal year was added. (c) ‘‘Fiscal
year’’ means a period of time consistent with the calendar periods of July 1
through the following June 30.

K.A.R. 92-26-4. Filing of quarterly reports; deadline: The requirement that all
ethanol producers must file reports was clarified. The payment of the incentive
was changed from quarterly to annually, on a fiscal year basis. Additional
information that must be provided on quarterly reports was included. If quarterly
reports are not filed timely the producer is then barred from seeking one quarter
of any payment due from the agricultural ethyl alcohol producer’s fund for that
fiscal year.

To review the regulations go to www.ksrevenue.org Choose ‘Your Business’
‘Motor Fuel’, then ‘Laws, Regulations and Notices’.

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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