KS
Kansas House Bill HB2134

Kansas 2023-2024 Regular Session

Kansas House Bill HB2134

Introduced
1/23/23  
Refer
1/23/23  

Caption

Providing a deduction from sales or compensating use tax when selling a wrecked or damaged salvaged vehicle and purchasing a subsequent motor vehicle.

Impact

The implications of HB2134 are significant for both consumers and the state tax revenue system. On one hand, it offers a financial reprieve for individuals who may find themselves in financially precarious situations due to the costs associated with vehicle repairs or replacements. The bill is expected to positively impact low and middle-income individuals who frequently engage in buying used or salvaged vehicles, allowing them to redirect funds that may have otherwise gone to taxes back into the local economy, potentially stimulating greater automobile sales.

Summary

House Bill 2134 proposes a tax deduction from sales or compensating use tax for individuals selling a wrecked or damaged salvaged vehicle and subsequently purchasing a motor vehicle. The primary objective of this legislation is to alleviate the financial burden on consumers who must navigate the complexities of buying and selling salvaged vehicles, which often involve higher repair and replacement costs. By allowing a tax deduction, the bill aims to support vehicle owners in recovering some of their investment when they transition from a damaged vehicle to a new one.

Contention

Despite its supportive framework for consumers, HB2134 may face contention from fiscal conservatives who argue that tax deductions could decrease state revenue. Critics might express concerns regarding potential abuse of the deduction by unscrupulous dealers or owners who might misrepresent the condition of vehicles. Furthermore, it is essential to monitor the extent to which such taxation changes could lead to disparities in revenue collection across various locales, which may incite debate among lawmakers about equity and fairness in tax policy. Ultimately, the balance between supporting consumers and maintaining fiscal responsibility will be pivotal in discussions surrounding this bill.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2229

Providing a deduction from sales or compensating use tax when selling and buying different motor vehicles within 180 days.

KS HB2106

Providing a sales tax exemption for sales of property and services used in the provision of communications services and a deduction from sales or compensating use tax when selling and buying different motor vehicles within 90 days.

KS HSB85

A bill for an act relating to wrecked or salvage vehicles with cosmetic damage.

KS HB2098

Providing a deduction from sales or compensating use tax when selling and buying different motor vehicles within 120 days, providing an exemption for certain purchases by disabled veterans of the armed forces of the United States, excluding manufacturers' coupons from the sales or selling price for sales tax purposes, providing sales tax exemptions for custom meat processing services and purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, providing sales tax exemptions for certain purchases by doorstep inc., exploration place, inc., Kansas children's discovery center, inc. and the Kansas fairgrounds foundation and providing for a sales tax exemption for sales of property and services used in the provision of communications services.

KS H1517

Damaged or Salvage Motor Vehicles, Mobile Homes, and Vessels

KS HB2584

Imposing sales and compensating use tax on digital property and subscription services and providing for the decrease in sales and compensating use tax rates in certain circumstances.

KS HB2062

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

KS HR153

Provides relative to transactions involving wrecked or repairable motor vehicles

KS HB2819

Exempting from the sales tax all-terrain vehicles and utility terrain vehicles used as farm equipment

KS HB2318

Decreasing the state rate for sales and compensating use tax to 6.15%.

Similar Bills

No similar bills found.