SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE BILL NO. 70
As Recommended by Senate Committee on
Assessment and Taxation

Brief*
SB 70 would repeal the sunset on an exclusion of
certain motor vehicle manufacturer rebates from the selling
price for sales tax purposes. Current law excludes cash
rebates granted by manufacturers to purchasers or lessees of
new motor vehicles if such rebates are paid directly to
retailers, but this provision is scheduled to sunset on June 30,
2021.
Additionally, the bill would exclude discounts and
coupons that are reimbursed by a third party from the
definition of “sales or selling price” for the purpose of Kansas
retail sales tax.

Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Tyson.
[Note: SB 70 contains provisions identical to 2020 SB
322 as amended by the Senate Committee of the Whole.]

Senate Committee on Assessment and Taxation
At the Senate Committee hearing on February 2, 2021,
a representative of the Kansas Automobile Dealers
Association testified as a proponent, stating the bill would
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
support the retail motor vehicle industry and result in sales
tax continuing to more accurately reflect the purchase price of
a motor vehicle.
There was no other testimony.
The Senate Committee recommended the bill be placed
on the Consent Calendar.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the bill would have the following effect
on state revenues.
(Dollars in Millions)
FY FY FY FY FY
2022 2023 2024 2025 2026
Motor Vehicle Rebate - SGF (3.80) (3.80) (3.90) (3.90) (3.90)
Motor Vehicle Rebate - SHF (0.70) (0.70) (0.70) (0.80) (0.80)
Motor Vehicle Rebate - Total (4.50) (4.50) (4.60) (4.70) (4.70)
Manufacturer’s Coupons - SGF (1.40) (1.40) (1.40) (1.40) (1.40)
Manufacturer’s Coupons - SHF (0.30) (0.30) (0.30) (0.30) (0.30)
Manufacturer’s Coupons - Total (1.70) (1.70) (1.70) (1.70) (1.70)
State General Fund Subtotal (5.20) (5.20) (5.30) (5.30) (5.30)
State Highway Fund Subtotal (1.00) (1.00) (1.00) (1.10) (1.10)
All Funds Total (6.20) (6.20) (6.30) (6.40) (6.40)
The fiscal note also states the bill is estimated to
decrease local sales tax revenues, but a specific estimate
was not provided.
Additionally, the Department of Revenue indicates the
provision concerning manufacturer’s coupons has the
potential to place Kansas out of compliance with the
Streamlined Sales and Use Tax Agreement, which could
imperil $41.3 million of annual revenues Kansas receives
from members of that Agreement.


2- 70
 Any fiscal effect associated with enactment of the bill is
not reflected in The FY 2022 Governor’s Budget Report.
Taxation; sales tax


3- 70


Statutes affected:
As introduced: 79-3602