How much motor fuel tax can Kansas garbage and solid waste disposal truck operators claim as a non-highway exemption?

Plain-English summary

This notice to garbage, refuse, or solid waste disposal licensees sets a non-highway fuel tax exemption.

• Operators of trucks designed, equipped, and used exclusively for garbage, refuse, or solid waste disposal may treat 35% of the fuel used in those trucks as exempt from fuel tax, as fuel used for a non-highway purpose.
• On motor-vehicle fuel tax, they may claim a refund of the tax paid on that 35%; licensed special fuel users may claim the 35% as an exemption.
• Anyone claiming more than 35% must keep records and documentation supporting the greater percentage.
• When fuel tax is refundable or exempt, the fuel is still subject to sales or use tax.

The notice supersedes all previous notices, rulings, opinions, and decisions on the subject. It carries no printed notice number; the Department indexes it as Notice 98-0318. It is dated March 18, 1988 and effective January 1, 1988 (an older document retained in the Department's notice library).

What this means for you

If you run garbage, refuse, or solid waste disposal trucks in Kansas, you can treat 35% of that fuel as non-highway and recover the fuel tax on it (by refund for motor-vehicle fuel, or as an exemption for special fuel) -- but you still owe sales or use tax on the fuel, and you need records to support any percentage above 35%. Because this is an old (1988) notice, confirm the current rules before relying on the exact percentage.

Common questions

Q: What percentage of fuel can a solid waste disposal truck operator treat as non-highway?
A: 35% of the fuel used in trucks designed, equipped, and used exclusively for garbage, refuse, or solid waste disposal, unless the operator keeps records supporting a greater percentage.

Q: Is the exempt or refunded fuel still subject to sales tax?
A: Yes. When the fuel tax is refundable or exempt, the fuel is subject to the appropriate sales or use tax.

Citations and references

• Kansas motor-vehicle fuel tax non-highway-use exemption (35% for solid-waste disposal trucks)

Subject

Non-Highway Fuel Tax Exemptions for Garbage, Refuse or Solid Waste Disposal

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 98-0318

Original ruling text

Notice
Notice Number:
Tax Type: Motor Vehicle Fuel Tax
Brief Description: Garbage, Refuse or Solid Waste Disposal Licenses
Keywords:
Effective Date: 03/18/1988

Body:

 NOTICE



 TO: Garbage, Refuse or Solid Waste Disposal Licenses

 FROM: Kansas Department of Revenue
 Business Tax Bureau
 Motor Fuel Tax Section

 SUBJECT: Non-Highway Fuel Tax Exemptions

 DATE: March 18, 1988

 This is to advise you the Department of Revenue has determined that persons
 who operate trucks designed equipped and used exclusively for garbage, refuse
 or solid waste disposal are entitle to claim 35% of the fuel used in said trucks
 exempt from fuel tax. This 35% exemption has been determined to be fuel used
 for non-highway purpose.

 With respect to the motor-vehicle fuel tax, said persons may obtain a refund of
 the tax paid based upon this 35% exemption. Persons licensed as special fuel
 users may claim this 35% as an exemption.

 Any person claiming a percentage greater than 35% must maintain records
 and documentation supporting the greatest percentage.

 It should be noted that when fuel is purchased and the fuel tax is either refundable
 or exempt, the fuel is subject to the appropriate sales/use tax.

 This notice is effective January 1, 1988, and supersedes all pervious notice,
 ruling, opinions and decisions issues by Department of Revenue.


 Should you have any questions regarding this notice, or need any addition.
 Please write the Kansas Department of Revenue, Business Tax Section,
 Third Floor, Robert B. Docking State Office Building, Topeka, Kansas
 66625-0001, or Telephone [913] 296-2412.

Date Composed: 10/06/1997 Date Modified: 04/07/2006

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