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 Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
Statehouse, Room 151-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2356 by House Committee on Commerce, Labor and
Economic Development
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2356 is
respectfully submitted to your committee.
HB 2356 would require the purchaser of a motor vehicle from a vehicle dealer to pay the
sales tax on the vehicle to the county treasurer or the Director of Taxation. The sales tax due would
be calculated based on the county sales tax rate or the sales tax of the city and county where the
purchaser is required to register the motor vehicle. Under current law, the sales tax rate assessed
on motor vehicles purchased from a vehicle dealer is the rate in effect at the dealer’s place of
business. Current law also allows that if the rate at the dealer’s place of business is less than the
rate at the location the vehicle is registered, the purchaser is liable for the difference between the
two rates.

Estimated State Fiscal Effect
FY 2019 FY 2019 FY 2020 FY 2020
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- -- $74,853
FTE Pos. -- -- -- 1.00
The Department of Revenue estimates it would require additional expenditures of $74,853
from special revenue funds and 1.00 FTE position for FY 2020. The figure includes salaries and
The Honorable Sean Tarwater, Chairperson
Page 2—HB 2356

wages of $59,117 for a position to handle additional refund requests and $15,736 for systems
programming changes. The Department was unable to estimate the fiscal effect on local
governments. Any fiscal effect associated with HB 2356 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
Jay Hall, Association of Counties