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 28, 2019


The Honorable Steven Johnson, Chairperson
House Committee on Taxation
Statehouse, Room 185-N
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Fiscal Note for HB 2370 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2370 is
respectfully submitted to your committee.
HB 2370 would make the following adjustments to motor fuel tax rates:
Current Law FY 2021 FY 2022 FY 2023 & After
Motor-Vehicle Fuels $0.24 $0.25 $0.26 $0.27
Special Fuels $0.26 $0.28 $0.30 $0.30
LP-Gas $0.23 $0.24 $0.25 $0.26
E-85 $0.17 $0.18 $0.19 $0.20
Compressed Natural Gas $0.24 $0.25 $0.26 $0.27
Liquified Natural Gas $0.26 $0.27 $0.28 $0.29
Per gallon

The bill would increase the fee for 24-hour motor fuel permits from $13 to $14 for FY
2021 and to $15 for FY 2022 and beyond. The fee for 72-hour motor fuel permits would be
increased from $25 to $26.92 for FY 2021 and to $28.85 for FY 2022 and beyond. HB 2370 would
also increase rates for the alternative tax LP-gas permit users may elect to pay beginning in FY
2021.
The Department of Revenue estimates that HB 2370 would increase revenues to the State
Highway Fund by $14.6 million in FY 2021. The bill also is estimated to increase revenues to the
Special City and County Highway Fund by $7.4 million in FY 2021. The fiscal effect to revenues
during subsequent years would be as follows:
FY 2022 FY 2023
State Highway Fund $30,200,000 $40,000,000
Special City and County Highway Fund 15,300,000 20,200,000
$45,500,000 $60,200,000
The Honorable Steven Johnson, Chairperson
Page 2—HB 2370

The Department of Revenue estimates the bill would require additional expenditures of
$44,590 from special revenue funds in FY 2020 for modifications to the automated tax system and
other administrative changes.
The Kansas Department of Transportation (KDOT) indicates that expenditures for FY
2021, FY 2022 and FY 2023 would increase in amounts equivalent to the increases to State
Highway Fund revenues. KDOT notes that there is a delay between the collection of revenues to
and payments from the Special City and County Highway Fund. As a result, KDOT estimates
payments from the Special City and County Highway Fund to local governments would increase
by $6.1 million in FY 2021, $13.9 million in FY 2022 and $19.4 million in FY 2023. Any fiscal
effect associated with HB 2370 is not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Ben Cleeves, Transportation
Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 79-3492b, 79-34