Farm Talk

Ag News from Around the Country

February 2, 2010

Fuel tax increase proposal for 2010

by Brenda Elsworth

I want to alert all consumers that the Kansas Legislature is considering proposals to increase the Kansas motor fuels tax.

One proposal calls for the addition of sales tax on every gallon of fuel purchased. This would result in an additional 5.3 percent state sales tax, which would equate to 15 cents per gallon, if the gallon cost $2.80. The higher the gallon cost the higher the fuel tax. There would also be the possibility for an additional two-three percent for local cities and counties sales tax, this would equate to an additional seven cents per gallon. The total proposed additional tax will be 22 cents per gallon for gas and 22 cents per gallon for diesel.

With the proposal, Kansas Legislature is considering reducing the excise tax five cents. If this is adopted the net increase on each gallon will be 17 cents per gallon for gas and 17 cents per gallon for diesel, if the gallon cost is $2.80. Again the higher the gallon cost, the higher the fuel taxes.

Consumers currently pay Kansas fuel excise tax of 24 cents per gallon on gas and 26 cents per gallon on diesel. The sales tax addition would be paid on the excise tax resulting in double taxation.

The Kansas Legislature is also considering removing sales tax exemptions. This would require farmers, school districts, non-profit organizations, etc. pay sales tax on all purchases, including fuel.

The second proposal would call for indexing of motor fuels. Indexing occurs when the rate of the motor vehicle fuel tax rate is adjusted annually according to a prescribed index. Indexing motor vehicle fuels tax means the tax on a gallon of fuel can change annually without the Legislature having to take responsibility for such action.

If you feel that any proposal to increase the Kansas motor vehicle fuel tax would hurt you or your business, as well as the Kansas economy, call 1-800-432-3942 and leave a message for your legislator.

Members of the transportation committee include:

R—Dwayne Umbarger, Chairman

R—Bob Marshall

R—Pat Apple

R—Les Donovan

R—Terrie Huntington

R—Mike Petersen

R—Vicki L. Schmidt

D—Anthony Hensley

D—Kelly Kultala

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