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Ezel / Tax Rulings / KS
KS Notice 13-16 Kansas Motor Fuel Tax 2013-07-17

What did the 2013 legislation change for Kansas motor fuel taxes and fees?

Short answer: Kansas Notice 13-16 (approved July 17, 2013) summarizes three 2013 bills affecting motor fuel. Senate Bill 83 (effective April 25, 2013) raises the installment payment plan agreement fee to $25, adds a $50 service fee for a request to abate tax liability, and allows a $22 service fee to be withheld when remitting funds to the IRS in response to a levy. Senate Bill 171 (effective June 20, 2013) sets the Kansas Qualified Biodiesel Fuel Producer Incentive funding: quarterly deposits of $50,000 from the State Highway Fund for FY14 (from July 1, 2013), no funding for FY15, and resumption July 1, 2015 (FY16) with quarterly deposits of $875,000 (K.S.A. 79-34,156); it also leaves the Kansas Retail Dealer Incentive unfunded through June 30, 2016 (K.S.A. 79-34,171). Senate Bill 2305 (effective July 1, 2013) addresses secondary containment under the Kansas Storage Tank Act (K.S.A. 65-34,102 and 65-34,103).

Apply this to your situation

This page answers the general question as of 2013. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2013
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 It reflects the statutes, regulations, and rates in effect on its issue date and may since have been amended or superseded by a later notice or law change, so confirm it is still current before relying on it.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 Notice 13-16 (approved July 17, 2013) summarizes three 2013 bills touching motor fuel taxes and fees.

Senate Bill 83 (effective April 25, 2013).

  • Raises the installment payment plan agreement fee to $25;
  • Adds a $50 service fee for a request for full or partial abatement of tax liability;
  • Allows a $22 service fee to be withheld when remitting funds to the IRS in response to a levy on those funds.

Senate Bill 171 (effective June 20, 2013).

  • Kansas Qualified Biodiesel Fuel Producer Incentive (K.S.A. 79-34,156): quarterly deposits of $50,000 from the State Highway Fund for FY14 (from July 1, 2013); no funding for FY15; funding resumes July 1, 2015 (FY16) with quarterly deposits of $875,000, subject to funds available.
  • Kansas Retail Dealer Incentive (K.S.A. 79-34,171): remains unfunded through June 30, 2016.

Senate Bill 2305 (effective July 1, 2013). Relates to the Kansas Storage Tank Act for secondary containment of underground storage tanks (K.S.A. 65-34,102 and 65-34,103).

The notice highlights only portions of the bills and points readers to the Kansas Legislature's website for full text.

What this means for you

Taxpayers using payment plans or abatement requests

  • Expect the higher $25 installment-plan fee and the new $50 abatement-request fee; a $22 fee may be withheld on IRS levy remittances.

Biodiesel producers and retail dealers

  • The producer incentive is funded for FY14, paused for FY15, and resumes (larger) in FY16; the retail dealer incentive stays unfunded through mid-2016.

Common questions

What is the new installment-plan fee? $25.

Is the biodiesel producer incentive funded? $50,000/quarter for FY14, none for FY15, then $875,000/quarter from FY16.

What about the retail dealer incentive? Unfunded through June 30, 2016.

What does SB 2305 address? Secondary containment for underground storage tanks under the Kansas Storage Tank Act.

Citations and references

  • K.S.A. 79-34,156 -- Kansas Qualified Biodiesel Fuel Producer Incentive funding schedule.
  • K.S.A. 79-34,171 -- Kansas Retail Dealer Incentive (unfunded through June 30, 2016).
  • K.S.A. 65-34,102 and 65-34,103 -- Kansas Storage Tank Act secondary containment.
  • 2013 Senate Bills 83, 171 and 2305 -- the underlying legislation.

Source

Original ruling text

Notice

Notice Number: 13-16

Brief Description: 2013 Motor Fuel Legislative Update
Approval Date: 07/17/2013

Body:

                           KANSAS DEPARTMENT OF REVENUE
                               DIVISION OF TAXATION

                                             NOTICE 13-16

                               2013 Motor Fuel Legislative Update

The following Bills were enacted by the 2013 Legislature:

Senate Bill 83
This bill was effective April 25, 2013, upon publication in the Kansas Register. The effective date referenced in the
section below is July 1, 2013. A summary of the bill is as follows:

Section 1(a) Increases the installment payment plan agreement fee to $25. (b) Adds a service fee of $50 for a
request of full or partial abatement of tax liability. (c) Allows a service fee of $22 to be withheld when remitting
funds to the IRS in response to a levy on those funds.

Senate Bill 171
This bill was effective June 20, 2013, upon publication in the Kansas Register. A summary of the bill is as follows:

Section 277 is regarding the Kansas Qualified Biodiesel Fuel Producer Incentive. The incentive funding for FY14,
beginning July 1, 2013, indicates quarterly deposits of $50,000 from the State Highway Fund. The incentive is not
funded for FY15. Funding resumes July 1, 2015 (FY16) with quarterly deposits of $875,000, based on funds
available in the State Highway Fund. K.S.A. 79-34,156.

Section 278 indicates the Kansas Retail Dealer Incentive for renewable fuels and biodiesel remains unfunded
through June 30, 2016. Therefore, no such incentive is provided through that date. K.S.A. 79-34,171.

Senate Bill 2305
This bill is effective July 1, 2013, upon publication in the statute book. The bill relates to the Kansas Storage Tank
Act
for secondary containment of underground storage tanks. K.S.A. 65-34,102 and 65-34,103.

This notice highlights only portions of the bills. For a detailed, full text copy of each bill, please visit the
Kansas Legislature's website at www.kslegislature.org.

                                        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
                                     Docking State Office Building
                                         915 SW Harrison St.
                                       Topeka, KS 66612-1588
                                        Tele: (785) 368-8222
                                         Fax: (785) 296-4993

Notice 13-16
July 17, 2013

Date Composed: 07/17/2013 Date Modified: 07/17/2013

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