Kansas Repeals Motor Carrier Property Tax

Kansas has repealed its motor carrier property tax, effective in 2014, according to the American Trucking Associations' State Laws newsletter.

The tax, which has been in effect since 1956, subjects for-hire motor carriers operating in Kansas, whether or not based there, to an ad valorem tax on the value of their rolling stock. This is paid by a separate return, and as ATA notes: "is at best a compliance nuisance for carriers." Lately, it has also become expensive.

The new legislation (H.B. 2557) signed into law by Kansas' governor April 6 imposes an additional registration fee (called a commercial vehicle fee), to be paid by intrastate and interstate carriers operating in Kansas, the latter to pay it through the International Registration Plan. The additional fee, unlike the repealed property tax, will apply equally to for-hire and to private carriers.

For vehicles over 54,000 pounds registered weight, the fee will be $400 a year (apportioned, of course, for those registering under IRP). That should represent a savings for a great many for-hire carriers that have been paying the property tax, ATA says.

The property tax will still be in effect for the 2012 and 2013 tax years.


For more details, contact Tom Whitaker at the Kansas Motor Carriers Association at tomw@kmca.org.