As Amended by Senate Committee on
Assessment and Taxation

HB 2229, as amended, would provide, for purposes of
retail sales and compensating use tax, a deduction from the
sales price of the purchase of a new or used motor vehicle in
the amount of the proceeds from the sale of a used motor
vehicle sold by the purchaser within 120 days before or after
the purchase. If proceeds from the sale exceeded the
purchase price, the purchaser would not owe any sales or
use tax.
The deduction would apply to any sales of used motor
vehicles on or after January 1, 2025.
Individuals would qualify for the deduction by either
providing a completed bill of sale to the county treasurer
when registering the purchased vehicle or by applying to the
Department of Revenue for a refund within three years of the
date of the purchase of the replacement vehicle.
The deduction would be permitted only if the taxpayer
claiming the deduction provides a copy of the required bill of
sale on Department of Revenue TR-312 forms or provides
the information required by that form and the information
matches the information entered in the assignment of title on
the back of the certificate of title.

*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
The bill was introduced by Representatives Turner and

House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by Representative Turner, who stated the bill
would apply sales tax treatment to private motor vehicle
transactions completed within 180 days that is currently
provided to simultaneous commercial transactions. Written-
only proponent testimony was provided by two private
Neutral testimony was provided by a representative of
the Kansas Automobile Dealers Association.
No other testimony was provided.

Senate Committee on Taxation
In the Senate Committee hearing, proponent testimony
was provided by Representative Turner, who generally stated
the bill would give equal sales tax treatment to both
automobile trade-in transactions and a subsequent private
sale and improve private sale reporting accuracy.
Neutral testimony was provided by a representative of
Kansas Automobile Dealers Association, who generally stated
the bill may not accurately capture private transaction sales
prices and suggested adding a Department of Revenue TR-
312 form requirement to ensure accurate sales prices.
Written-only proponent testimony was provided by four
private citizens.

2- 2229
Written-only opponent testimony was provided by a
representative of Americans for Prosperity.
The Senate Committee amended the bill to change the
starting date from January 1, 2024, to January 1, 2025, and
reduce the 180-day transaction window to 120 days.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue indicates enactment of the bill would reduce sales
tax collections by an indeterminate amount beginning in FY
2024. The Department notes that a similar, but more
expansive, program in Missouri results in an annual reduction
of sales tax receipts of $5.0 million and further indicates the
reduction in Kansas receipts would likely be smaller due to
Kansas’ smaller population and the bill’s narrower provisions.
Any fiscal effect associated with the bill is not reflected
in The FY 2025 Governor’s Budget Report.
Taxation; sales tax; motor vehicles; deduction

3- 2229

Statutes affected:
As introduced: 12-199
As Amended by Senate Committee: 12-199