How does House Bill 2161 relieve Kansas school buses from motor fuel tax?

Plain-English summary

This notice explains House Bill 2161 (effective July 1, 1995), which relieves school districts and nonpublic schools of motor fuel tax on fuel used in their buses.

• 'School bus' (K.S.A. 8-1406) means a bus privately owned and contracted/leased/hired by, or owned and operated by, a school district or nonpublic school to transport pupils, students, or school personnel to/from school or school-related functions.
• Unregistered school buses (not registered under K.S.A. 8-126 et seq.) may buy dyed diesel fuel without the motor fuel tax; if they use gasoline or clear diesel, they must apply for a refund.
• Registered school buses pay the tax at purchase and are eligible for a refund of tax on fuel used for qualifying student transportation.

To claim refunds, the purchaser must obtain a Motor Fuel Refund Permit and follow all Motor Fuel Refund requirements. The document carries no printed notice number (indexed as Notice 95-0701).

What this means for you

If you operate buses for a Kansas school district or nonpublic school, from July 1, 1995 you can avoid or recover the motor fuel tax on bus fuel -- buy dyed diesel tax-free for unregistered buses, or get a Motor Fuel Refund Permit and claim a refund for gasoline, clear diesel, or registered-bus fuel used to transport students.

Common questions

Q: Can a school bus buy fuel without paying Kansas motor fuel tax?
A: An unregistered school bus can buy dyed diesel without the tax; buses using gasoline or clear diesel, and registered buses, pay the tax and claim a refund with a Motor Fuel Refund Permit.

Q: What is needed to claim the school bus fuel tax refund?
A: A Motor Fuel Refund Permit obtained by the fuel purchaser, subject to all Motor Fuel Refund requirements.

Citations and references

• 1995 House Bill 2161 (school bus motor fuel tax relief)
• K.S.A. 8-1406 (definition of bus)
• K.S.A. 8-126 et seq. (vehicle registration)

Subject

School Districts and Nonpublic Schools -- House Bill 2161

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 95-0701

Original ruling text

Notice
Notice Number:
Tax Type: Motor Vehicle Fuel Tax
Brief Description: School Districts and Nonpublic Schools
Keywords:
Effective Date: 07/01/1995

Body:
NOTICE

TO: School Districts and Nonpublic Schools

FROM: Kansas Department of Revenue, Motor Fuel Tax Section

SUBJECT: House Bill 2161

DATE: May 8, 1995

House Bill 2161 was passed in the 1995 Legislative session and will become law on July 1, 1995. The bill includes an amendment
aimed at assisting school districts and nonpublic schools when purchasing motor vehicle fuels or special fuels for use in their buses.
The following provisions were made:
DEFINITION

"School bus" means every bus, as defined by K.S.A. 8-1406, and amendments thereto, which is: (1) Privately owned and contracted
for, leased or hired by a school district or nonpublic school for the transportation of pupils, students or school personnel to or from
school or to or from school-related functions or activities; or (2) owned and operated by a school district or nonpublic school which
is registered under the provisions of K.S.A. 8-126 et seq., and amendments thereto, used for the transportation of pupils, students or
school personnel to or from school or to or from school-related functions or activities".
EXEMPTION/REFUND PROVISIONS

School buses which are not registered under the provision of K.S.A. 8-126 et seq., may purchase dyed diesel fuel without the motor
fuel tax. Those school buses using gasoline or clear diesel fuel must apply for a refund of motor fuel tax.

For school buses which are registered under the provision of K.S.A. 8-126 et seq., motor fuel tax will be included at the time of
purchase. Any school bus, meeting the definition above, which uses motor-vehicle fuels or special fuels for the transportation of
pupils, students or school personnel to or from school or to or from school-related functions or activities will be eligible for a refund
of motor fuel tax paid. A Motor Fuel Refund Permit will need to be obtained by the purchaser of the fuel. All requirements under the
Motor Fuel Refund provisions will apply to the permit holder.

Applications for Motor Fuel Refund permits can be obtained by contacting the Motor Fuel Refund Section at (913) 296-4466.

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

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