Bill > HB2154

This bill proposes significant changes to the taxation of rental and leased vehicles in Kansas. It seeks to impose property tax on rental and lease vehicles while simultaneously discontinuing the existing excise tax on vehicle rentals and leases. Specifically, the bill would modify several existing statutes to remove references to the current excise tax system and prepare for a new property tax approach for vehicles owned by car rental companies. Key provisions include creating a new registration process for car rental companies with over 250 vehicles, establishing special license plates for rental fleet vehicles, and setting an expiration date of July 1, 2025, for the current excise tax. The bill aims to streamline vehicle taxation for rental car companies by shifting from an excise tax to a property tax model, which could potentially simplify tax collection and provide a more consistent revenue stream for local governments. The changes would affect how rental vehicles are registered, taxed, and tracked within the state, with implications for both car rental companies and local tax authorities.

Budget and Finance

Taxation (H)

https://kslegislature.gov/li/b2025_26/measures/hb2154/