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Ezel / Tax Rulings / KS
KS Notice 91-0701 Tire Tax; Vehicles Rental Excise Tax 1991-06-21

What tire and short-term vehicle-rental tax changes took effect in Kansas on July 1, 1991?

Short answer: Effective July 1, 1991, House Bill 2407 broadened the $0.50 tire excise tax to more highway vehicles and to tires mounted on new vehicles at first retail sale. Senate Bill 14 imposed a 3.5% excise tax on gross receipts from motor-vehicle rentals or leases of 28 days or less and exempted vehicles subject to that rental tax from motor-vehicle personal property tax. Tire and short-term rental businesses that had not registered were instructed to do so.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 1991
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 official Kansas Department of Revenue guidance. The prior-notices index and filename identify it as Notice 91-0701, while the body is an unnumbered notice dated June 21, 1991 describing laws effective July 1; the printed date controls issued_date. It summarizes historical rates and registration rules. 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

This notice briefly summarizes two Kansas laws effective July 1, 1991.

Tire excise tax

House Bill 2407 broadened the $0.50 tax on new vehicle tires by adopting the K.S.A. 8-1485 vehicle definition and taxing tires mounted on a new vehicle when it was first sold at retail. Tire retailers and new-vehicle dealers needed separate tire-tax registration.

Vehicle rental excise tax

Senate Bill 14 imposed a 3.5% excise tax on gross receipts from renting or leasing motor vehicles for 28 days or less. Vehicles subject to that excise tax were exempt from motor-vehicle personal property tax under K.S.A. 79-5101 et seq.

What this means for you

A retailer selling new tires or new vehicles and a short-term vehicle-rental business needed to determine whether it had registered for the correct new excise-tax account before the July 1, 1991 effective date.

Common questions

Q: Did the rental tax apply to a 30-day lease?
A: No. The notice limits the tax to 28 days or less.

Q: What property-tax benefit accompanied the rental excise tax?
A: Vehicles subject to the rental excise tax were exempt from the motor-vehicle personal property tax.

Citations and references

  • 1991 House Bill 2407.
  • 1991 Senate Bill 14.
  • K.S.A. 8-1485.
  • K.S.A. 79-5101 et seq.

Subject

1991 Tire and Vehicle Rental Excise Tax Changes

Source

Original ruling text

Notice
Notice Number:
Tax Type: Vehicles Rental Excise Tax
Brief Description: Exempt from personal property tax
Keywords:
Effective Date: 07/01/1991

Body:
NOTICE

TO: Kansas Registered Retailers

FROM: Kansas Department of Revenue
Business Tax Bureau

SUBJECT: 1991 Legislative Changes

DATE: June 21, 1991

The following is a brief description of legislation passed by the 1991 Kansas Legislature pertaining to the tire excise tax and the
vehicle rental excise tax.

House Bill No. 2407 - The 1990 Kansas Legislature enacted a new law that imposed an excise tax on the sale of vehicle tires. The
tire excise tax was imposed at the rate of $.50 per tire on the retail sale of new tires for automobiles and for certain other vehicles.
The 1991 legislature enacted House Bill No. 2407 which makes two significant changes to the existing tire excise tax law. First, the
bill broadens the definition of "vehicle" so that it has the same meaning as provided by K.S.A. 8-1485. Second, the bill imposes the
tire excise tax on tires mounted on a new vehicle when the new vehicle is sold at retail for the first time. This legislation is effective
on July 1, 1991.

If you are a tire retailer or a new vehicle dealer and have not registered for the tire excise tax, please contact the Tax
Registration Section of the Business Tax Bureau immediately at (913) 296-3168.

Senate Bill No. 14 - The 1991 Kansas Legislature enacted Senate Bill No. 14 which changes the taxation of transactions involving
the rental of motor vehicles. The new law contains two significant changes for businesses. First, the bill imposes an excise tax at the
rate of 3.5% on the gross receipts received from the rental or lease of motor vehicles rented or leased for a period of time not
exceeding 28 days. Second, the bill provides that motor vehicles that are subject to the vehicle rental excise tax shall be exempt from
personal property taxes imposed on motor vehicles pursuant to K.S.A. 79-5101 et seq. The effective date of this legislation is July 1,
1991.

If you are engaged in the business of renting motor vehicles for periods of 28 days or less and have not registered for the vehicle
rental excise tax, please contact the Tax Registration Section of the business Tax Bureau immediately at (913) 296-3168.

If you have any questions regarding this notice, please write the Business Tax Bureau, Kansas Department of Revenue, Topeka,
Kansas 66625-0001, or call (913) 296-2461.

Date Composed: 10/06/1997 Date Modified: 10/10/2001

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