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KS Notice 14-15 Kansas Motor Fuel Tax 2014-08-19

What did the 2014 Kansas legislation change for motor fuel and natural gas taxes?

Short answer: Kansas Notice 14-15 (revised, dated August 19, 2014) summarizes two 2014 motor fuel bills. House Bill 2057 (effective July 1, 2014) amends K.S.A. 79-3492 to add energy-equivalent conversion formulas (126.67 cubic feet or 5.66 pounds of compressed natural gas equals one gasoline gallon; 6.06 pounds of liquefied natural gas equals one diesel gallon); amends K.S.A. 79-3495 to require a valid license for LP-gas users or dealers; and amends K.S.A. 79-34,141 so the $.23 per gallon LP-gas rate excludes CNG and LNG, taxes CNG at $.24 per gallon, and taxes LNG at $.26 per gallon. House Bill 2231 (effective on publication in the Kansas Register) amends K.S.A. 79-34,156 so that no moneys are transferred to the Kansas Qualified Biodiesel Fuel Producer Incentive Fund during the fiscal year ending June 30, 2015. The notice is dated by a footer of August 19, 2014.

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This page answers the general question as of 2014. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2014
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 It reflects the statutes, regulations, and rates in effect on its issue date and may since have been amended or superseded by a later notice or law change, so confirm it is still current before relying on it.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 14-15 (Revised; footer-dated August 19, 2014) summarizes the 2014 motor fuel legislation.

House Bill 2057 (effective July 1, 2014).

  • K.S.A. 79-3492 -- adds energy-equivalent conversion formulas for natural gas: 126.67 cubic feet or 5.66 pounds of compressed natural gas (CNG) = one gasoline gallon; 6.06 pounds of liquefied natural gas (LNG) = one diesel gallon.
  • K.S.A. 79-3495 -- clarifies it is unlawful for any LP-gas user or dealer to use or sell LP-gas in Kansas without a valid license, unless the user has remitted the tax to a licensed LP-gas dealer.
  • K.S.A. 79-34,141 -- the $.23 per gallon LP-gas rate does not include CNG and LNG; CNG is taxed at $.24 per gallon (or fraction), and LNG at $.26 per gallon (or fraction).

House Bill 2231 (effective on publication in the Kansas Register).

  • K.S.A. 79-34,156 -- provides that no moneys shall be transferred to the Kansas Qualified Biodiesel Fuel Producer Incentive Fund during the fiscal year ending June 30, 2015.

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

Date note. This revised notice carries no header date; its issue date is taken from the footer ("Notice 14-15 / August 19, 2014").

What this means for you

CNG and LNG sellers and users

  • Use the new energy-equivalent conversions and rates -- CNG at $.24 per gallon and LNG at $.26 per gallon -- separate from the $.23 LP-gas rate.

LP-gas dealers and users

  • A valid license is required to use or sell LP-gas in Kansas unless tax was remitted to a licensed dealer.

Biodiesel producers

  • No incentive-fund transfers were made for the fiscal year ending June 30, 2015.

Common questions

What are the CNG/LNG conversion factors? 126.67 cubic feet or 5.66 pounds of CNG per gasoline gallon; 6.06 pounds of LNG per diesel gallon.

What are the CNG and LNG tax rates? $.24 per gallon for CNG and $.26 per gallon for LNG; LP-gas stays at $.23.

What happened to the biodiesel producer incentive fund? No moneys were transferred to it for the fiscal year ending June 30, 2015.

How is this notice dated? By a footer dated August 19, 2014 (it has no header date).

Citations and references

  • K.S.A. 79-3492, 79-3495 and 79-34,141 -- amended by 2014 House Bill 2057 (CNG/LNG conversions and rates; LP-gas licensing).
  • K.S.A. 79-34,156 -- amended by 2014 House Bill 2231 (no biodiesel incentive-fund transfer for FY ending June 30, 2015).
  • 2014 House Bills 2057 and 2231 -- the underlying legislation.

Source

Original ruling text

Division of Taxation phone: 785-368-8222
915 SW Harrison St. fax: 785-296-4993
Topeka, KS 66612 www.ksrevenue.org

Nick Jordan, Secretary Sam Brownback, Governor
Steve Stotts, Director of Taxation

                                             NOTICE 14-15

                                   2014 Motor Fuel Legislative Update
                                              REVISED

The following Bills were enacted by the 2014 Legislature:

House Bill 2057
This bill is effective July 1, 2014, upon publication in the statute book. A summary of the bill is as
follows:

Section 9 amends K.S.A. 79-3492 to include a conversion formula to convert natural gas to a per
gallon energy equivalent. 126.67 cubic feet or 5.66 pounds of compressed natural gas will equal
one gasoline gallon. The conversion formula to convert the energy equivalent of liquefied natural
gas to a diesel gallon energy equivalent will be 6.06 pounds of liquefied natural gas, to equal one
diesel gallon.

Section 10 amends K.S.A. 79-3495 to clarify that it will be unlawful for any LP-gas user or dealer
to use or sell LP-gas within Kansas, unless they hold a valid license, or unless such user has
remitted the tax to a licensed LP-gas dealer.

Section 11 amends K.S.A. 79-34,141. (3) clarifies that the tax rate of $.23 per gallon for LP-gas
does not include compressed natural gas and liquefied natural gas. (5) indicates the tax rate for
compressed natural gas is $.24 per gallon or fraction thereof. (6) taxes liquefied natural gas at $.26
per gallon or fraction thereof.

House Bill 2231
This bill is effective upon publication in the Kansas Register. A summary of the bill is as follows:

Section 114 amends K.S.A. 79-34,156 to indicate that 'no' moneys shall be transferred to the
Kansas Qualified Biodiesel Fuel Producer Incentive Fund during the fiscal year ending June 30,
2015.

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 14-15
August 19, 2014

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