Kansas 2023-2024 Regular Session

Kansas House Bill HB2229

Introduced
1/31/23  
Refer
1/31/23  
Report Pass
2/21/23  
Engrossed
3/9/23  
Refer
3/10/23  
Report Pass
3/13/24  

Caption

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

Impact

The passage of HB2229 is expected to enhance consumer behavior in the automobile market by incentivizing the buying and selling of vehicles. By permitting tax deductions that align with the sale and subsequent purchase of motor vehicles, the legislation seeks to create a more favorable environment for potential buyers. This could lead to a revitalization of the car sales market, promoting more fluid transactions in vehicle ownership, which could be beneficial for local dealerships and the broader economy in Kansas.

Summary

House Bill 2229 proposes changes to sales and compensating use tax legislation concerning motor vehicles in Kansas. The bill allows individuals selling a used motor vehicle to receive a tax deduction when they purchase another vehicle of greater value within a specific 180-day window. This policy aims to alleviate the tax burden for those who are engaged in consecutive transactions involving motor vehicles, thereby encouraging consumers to engage more in the vehicle market without the concern of additional tax expenses on their purchase.

Contention

During discussions surrounding HB2229, lawmakers exhibited points of contention regarding the financial impacts of the bill on state revenue and the complexities involved in enforcing the tax deductions. Some legislators raised concerns about the potential for tax fraud and the enforcement difficulty related to ensuring that the sales and purchases were appropriately documented. Others contended that facilitating these transactions through tax deductions would serve to ultimately boost tax revenues from increased sales activity over time. The differing perspectives underscore ongoing debates about balancing tax incentives with fiscal responsibility in state policy.

Companion Bills

No companion bills found.

Previously Filed As

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 HB2134

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

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 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 HB2318

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

KS HB2231

Providing an additional personal exemption for head of household tax filers and increasing the personal exemption for certain disabled veterans for purposes of income tax, modifying the definition of household income related to increased property tax homestead refund claims, providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, providing for the apportionment pursuant to the three-factor test of a manufacturer who sells alcoholic liquor, requiring the use of single sales factor pursuant to the multistate tax compact, establishing deductions from income when using the single sales factor and receipts factor, providing for the decrease in corporate income tax rates, determining when sales other than tangible personal property are made in the state, excluding sales of a unitary business group of electric and natural gas public utilities, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers.

KS HB2336

Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor, the decrease in corporate income tax rates determining when sales other than tangible personal property are made in the state and excluding sales of a unitary business group of electric and natural gas public utilities.

KS SB53

Excluding manufacturers' coupons from the sales or selling price for sales tax purposes.

KS HB2277

Decreasing the state rate for sales and use taxes for prepared food and increasing the percent credited to the state highway fund from sales and use tax revenue collected.

KS HB2586

Increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the normal rate of privilege tax, increasing the household and dependent care expenses income tax credit amount, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction, providing for an annual sales tax holiday for certain sales of school supplies, computers and clothing, providing sales tax exemptions for children's diapers and feminine hygiene products and reducing the state rate of tax on sales of food and food ingredients to 0% on April 1, 2024.

Similar Bills

No similar bills found.