DATE: September 23, 2005
TO: All County Treasurers and Staff
FROM: Mathew Moser, Manager, Titles and Registrations Bureau
SUBJECT: Compensating Use Tax on ATVs
In keeping with Kansas Department of Revenue’s tax collection philosophy, a policy modification is being adopted regarding compensating use tax. This memorandum will provide guidelines to ensure consistent and equitable implementation of compensating use tax policy. Effective immediately, county treasurer’s offices should process all ATV transactions without collecting local compensating use tax.
The Vehicle Identification Processing system is being modified to accept this change and a download will be completed this weekend, complying with this policy modification.
If a sales transaction is completed by a dealer and a sales tax receipt is being provided, place a “P” for “paid” in the sales tax code field to by-pass the sales tax screen.
If a sale takes place between individuals, place a “T” in the sales tax code field to calculate the sales tax. When the sales tax screen appears, provide the sellers address, sale price and answer the question on city/county limits. The sales tax will be calculated on the point of sale. A sales tax receipt will be provided on these transactions.
Please check your version screens to determine if the download was successful in your county. If the version is not correct, please call the help desk at 785-296-1700.
In addition, if a customer requests a refund and it is within the current month or previous month, you may process it on the Vehicle Identification Processing system under sales tax adjustment. If the original sales tax was paid over one month ago, the customer must apply directly to the Department of Revenue for a refund.
If you have any questions, please feel free to contact Peggy Stalcup, Ray Wilk or myself at 785-296-2242.
cc: Carmen Alldritt, Director of Vehicles
05-045