Kansas 2023-2024 Regular Session

Kansas House Bill HB2062

Introduced

1/18/23

Refer

1/18/23

Failed

4/30/24

Caption

Discontinuing the excise tax on rental and leased motor vehicles and imposing property tax on such vehicles.

Impact

If passed, HB 2062 will notably shift the fiscal responsibility for rental vehicles from an excise tax model to a property tax basis. Proponents argue that this change will generate more stable revenue streams for local governments and improve the management and control of rental vehicle taxation. The bill also appears to address concerns around compliance and revenue generation, aspects that are critical given the burgeoning car rental market and the evolving landscape of transportation modalities.

Summary

House Bill 2062 proposes significant changes to the taxation framework for rental and leased motor vehicles in Kansas. Specifically, it aims to impose property tax on these vehicles while discontinuing the current excise tax applied to their rental or lease. The bill outlines updated procedures for the registration of vehicles exceeding 250 units that are owned by car rental companies, requiring electronic submission to the division of vehicles. This change is intended to streamline the registration process and ensure compliance with the new taxation scheme.

Contention

However, there are notable points of contention surrounding this legislation. Critics argue that shifting to a property tax system could disproportionately impact smaller car rental companies and increase costs for consumers. There are concerns that local governments may face challenges in effectively implementing these changes without additional support. Furthermore, opponents of the bill worry about the potential for escalating local tax burdens without corresponding benefits to the communities served by these rentals.

Latest HB2062 Activity

Companion Bills

No companion bills found.

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