This bill proposes significant changes to the taxation of rental and leased motor vehicles in Kansas by imposing a property tax on these vehicles and eliminating the existing excise tax associated with their rental or lease. It amends several sections of the Kansas Statutes Annotated (K.S.A.), specifically K.S.A. 8-1,189, 8-2802, 79-5101, 79-5117, and K.S.A. 2024 Supp. 79-3606, while repealing current sections related to these taxes. The bill also outlines a new registration process for rental vehicles owned by car rental companies, requiring electronic submission and establishing permanent, distinct license plates for these vehicles. Additionally, it clarifies definitions related to peer-to-peer vehicle sharing, explicitly excluding rental vehicles from this category.

Moreover, the bill introduces amendments to existing tax laws regarding exemptions for various nonprofit organizations and specific sectors, allowing them to purchase tangible personal property and services without incurring sales tax for projects related to their charitable missions. It specifies that contractors must obtain exemption certificates for materials used in these projects and maintain records for audit purposes. The bill also establishes penalties for misuse of these exemptions, including potential misdemeanor charges for contractors who improperly dispose of materials purchased under these certificates. Overall, the legislation aims to streamline tax processes while ensuring compliance and accountability among contractors and organizations.

Statutes affected:
As introduced: 8-1, 8-2802, 79-5101, 79-5117, 79-3606, 8-145, 79-32, 8-143m, 79-5110, 79-5111