Kansas 2025-2026 Regular Session

Kansas House Bill HB2154

Introduced
1/29/25  

Caption

Imposing property tax on rental and leased vehicles and discontinuing the excise tax on the rental and lease of such vehicles.

Impact

If passed, the bill would significantly alter the tax responsibilities of rental companies and potentially the costs for consumers. Rental companies would no longer need to account for the excise tax, which impacts their pricing structures. However, they would need to adapt to the property tax regime, which could lead to an increase in rental rates as they transfer costs onto consumers. Additionally, the local taxing authorities could see changes in revenue distribution based on how property taxes are assessed and collected.

Summary

House Bill 2154 aims to amend existing taxation laws concerning rental and leased motor vehicles in Kansas. The bill proposes to impose a property tax on rental and leased vehicles, thus replacing the current excise tax that is charged on their rental or lease. This legislative shift is designed to create a more consistent tax framework for the vehicle rental industry and to potentially increase state revenue derived from property taxes, which can be more predictable than excise taxes.

Contention

There are notable points of contention related to this bill. Proponents argue that this approach provides a clearer and more stable tax structure for both consumers and rental companies. Conversely, critics express concerns over the potential for increased costs passed down to consumers, which could deter rentals, thus harming local businesses that rely on vehicle rentals for tourism and other services. The change from an excise tax to a property tax also raises questions about how well it will be received by both companies and consumers in the long run.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2062

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

KS HB2148

Increasing certain registration and title fees on vehicles for services provided by county treasurers and the division of vehicles, decreasing certain fees related to administrative costs and disposition of such fees and eliminating the division of vehicles modernization surcharge.

KS SB90

Increasing certain registration and title fees on vehicles for services provided by county treasurers and the division of vehicles, decreasing certain fees related to administrative costs and modifying the disposition of such fees and eliminating the division of vehicles modernization surcharge.

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 SB169

House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS HB2710

Imposing an excise tax on each transaction by a money transmitter by wire, establishing an income tax credit for excise taxes paid, allowing the state bank commissioner to assess penalties for the nonpayment of such excise tax, providing for the distribution of such excise tax and penalty moneys, establishing the criminal litigation fund, wire transfer fee fund and prosecutor and law enforcement grant fund and creating a misdemeanor crime of unlawful transmission of a wire transfer and providing criminal penalties therefor.

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 HB2111

Establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund, altering the calculation for STAR bond districts and discontinuing the food sales income tax credit.

KS SB8

Reducing penalties for the late filing of and the failure to file personal property renditions and the discovery of escaped personal property, requiring filing only an initial statement with county appraiser for personal property, decreasing the penalties for failing to timely remit withholding income taxes of employees by employers, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar year 2024, modifying and prescribing the contents of the revenue neutral rate public hearing notice, providing two prior years' values on the annual valuation notice, allowing for filing of an appraisal by a certified residential real property appraiser for appeal purposes, discontinuing the prohibition of paying taxes under protest after a valuation notice appeal, accounting for adverse influences in the valuation of agricultural land, including properties used for registered agritourism activities as land devoted to agricultural use for purposes of classification, providing a property tax exemption for certain business property operated in competition with property owned or operated by a governmental entity, providing income tax subtraction modifications to permit the carryforward of certain net operating losses for individuals and for the federal work opportunity tax credit and the employee retention credit disallowances, increasing the tax credit amount for adoption expenses and making the credit refundable, increasing the amount of income tax credits available for purchases under the disability employment act from qualified vendors, continuing in existence such credits beyond tax year 2023 and defining qualifying vendors and eligible employees, establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities, clarifying the determination of taxable income of an electing pass-through entity and providing for the passing through of tax credits to electing pass-through entity owners for purposes of the salt parity act, excluding social security payments from household income and expanding eligibility for seniors and disabled veterans related to increased property tax homestead refund claims, providing a sales tax exemption for sales of property and services used in the provision of communications services and excluding manufacturers' coupons from the sales or selling price.

KS HB2066

Providing for a property tax exemption for up to two motor vehicles for volunteer firefighters and volunteer emergency medical service providers.

Similar Bills

KS SB169

House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS HB2773

Providing a sales tax exemption for certain purchases by the boys' and girls' club of Topeka.

KS SB515

Providing a sales tax exemption for the Dane G. Hansen foundation.

KS SB454

Providing a sales tax exemption for purchases of property and services by nonprofit organizations distributing food pursuant to a food distribution program on a charitable basis.

KS SB60

Substitute for SB 60 by Committee on Assessment and Taxation - Providing sales tax exemptions for custom meat processing services, 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, certain purchases and sales by the Johnson county Christmas bureau association, certain purchases by doorstep inc., exploration place, inc. and Kansas children's discovery center, inc. and sales of menstrual discharge collection devices and diapers and establishing an annual sales tax holiday exempting certain sales of school supplies, computers and clothing.

KS SB520

Providing a sales tax exemption for certain not-for-profit organizations that provide public transportation services.

KS HB2685

Providing a sales tax exemption for registered charitable organizations.

KS HB2765

Providing a sales tax exemption for period products, diapers and incontinence products.