Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


February 27, 2019


The Honorable Mike Petersen, Chairperson
Senate Committee on Transportation
Statehouse, Room 345-S
Topeka, Kansas 66612
Dear Senator Petersen:
SUBJECT: Fiscal Note for SB 189 by Senate Committee on Ways and Means
In accordance with KSA 75-3715a, the following fiscal note concerning SB 189 is
respectfully submitted to your committee.
SB 189 would add the following new fees on or after January 1, 2020, for passenger
vehicles, other than motorcycles, used solely for the carrying of persons for pleasure or business,
and for hearses and ambulances:
1. $75 for motor vehicles propelled by more than one power source; and
2. $150 for each electric vehicle.

Estimated State Fiscal Effect
FY 2019 FY 2019 FY 2020 FY 2020
SGF All Funds SGF All Funds
Revenue -- -- -- $305,048
Expenditure -- -- -- $11,560
FTE Pos. -- -- -- --
For hybrid vehicles, the Department of Revenue Division of Vehicles estimates the bill
would result in additional annual revenue of $455,880 to the State Highway Fund ($40 increase
per registration fee X 11,397 vehicles = $455,880). The Division notes that there were 11,397
hybrid vehicles registered in Kansas in 2017. Currently, hybrid vehicles are subject to either a $30
or $40 annual registration fee based on gross weight. The Division’s estimate assumes an average
fee of $35 under current law. Using this assumption, SB 189 would result in an increase of $40
per registration fee ($75 - $35 = $40).
The Honorable Mike Petersen, Chairperson
Page 2—SB 189

For electric vehicles, the Division estimates the bill would result in additional annual
revenue of $154,215 to the State Highway Fund ($115 increase per registration fee X 1,341
vehicles = $154,215). The Division notes that there were 1,341 electric vehicles registered in
Kansas in 2017. Electric vehicles are also currently subject to either a $30 or $40 annual
registration fee based on gross weight. The Division’s estimate assumes an average fee of $35
under current law. Using this assumption, the bill would result in an increase of $115 per
registration fee ($150 - $35 = $115).
Altogether, it is estimated that SB 189 would result in additional annual revenue of
$610,095 to the State Highway Fund. The new fees would go into effect on January 1, 2020, or
halfway through FY 2020, which would result in $305,048 being deposited to the State Highway
Fund in FY 2020. According to Kansas Legislative Research Department information presented
to the Joint Legislative Transportation Vision Task Force, the National Conference of State
Legislatures estimates that sales for non-gasoline vehicles are expected to increase by 400.0
percent by 2040.
The Department of Revenue estimates it would require additional expenditures of $11,560
from special revenue funds in FY 2020. This figure includes $10,000 for database programming
changes, $1,200 for system testing and $360 for changes to policies and procedures. Any fiscal
effect associated with SB 189 is not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 8-143