Governor Colyer signs Bill Cutting Taxes on New Vehicle Purchases

 

Governor Colyer today signed HB 2111, also known as the Motor Vehicle Rebate Sales Tax Exclusion, which creates a sales tax exemption for cars purchased using manufacturer rebates. Under the previous law, the value of rebates was included in the calculation of the sales tax liability on the purchase of new cars.

 

The state previously passed a similar exemption in 2006, but allowed the exemption to sunset in 2009, as a result of the economic downturn. Missouri, Oklahoma and Nebraska currently have a similar exemption. HB 2111 is aimed at keeping Kansas consumers from crossing state lines to purchase a motor vehicle that is not subject to this tax.

 

“I am pleased to sign this bill to cut taxes on the purchase of rebate discounted vehicles in Kansas,” said Governor Colyer, “This will level the playing field between Kansas’ auto retailers and those in surrounding states who have already made this change. More importantly, this bill will lessen the tax burden to make purchasing a new vehicle more affordable.

 

“As governor, I will continue to support policies that reduce the tax burden, put more money in the pockets of hard-working Kansans and help our businesses compete.”

 

Don McNeely, President of the Kansas Automobile Dealers Association, praised the bill saying, “The Kansas Automobile Dealers Association are appreciative of the Kansas Legislature and Governor Colyer for supporting legislation to bring tax relief to the consumer when purchasing or leasing a new vehicle with a rebate.”

HB 2111 will go into effect on July 1, 2018.