Form Pub. Ks-1526 - Kansas Business Taxes For Motor Vehicle Transactions (Page 30 of 44) in pdf

KANSAS DEPARTMENT OF REVENUE

Notice #95-09

SOME VEHICLE SALES NOW EXEMPT

County treasurers should be aware of a new sales tax exemption on isolated and occasional sales of motor vehicles.

This notice is intended to help county treasurers understand the exemption, who qualifies for it, and how it may be

claimed.

Beginning July 1, 1995, sales of motor vehicles between immediate family members are exempt from sales tax.

Immediate family members are defined as lineal ascendants and descendants and their spouses. Accordingly, the sale

or gift of a vehicle on which there is a lien is exempt if the buyer and seller are immediate family members, as defined

in the statute.

Vehicle sales that qualify for this exemption include, but are not limited to, sales from a:

- parent to son or daughter (including adopted children and step children) and their spouses;

- son or daughter to mother or father (including step parents);

- son-in-law or daughter-in-law to parent-in-law;

- grandparent to a grandchild or the grandchild’s husband or wife; and

- grandchild to a grandparent or to the grandparent’s spouse.

Sales between brothers and sisters, aunts, uncles, nieces, and nephews are not sales between “immediate family

members” as defined by the new law and do not qualify for this exemption.

When one or more of the joint owners of a vehicle are not immediate family members, the sale is exempt only if the

sellers’ title is an “and/or” or “or” type of ownership. For example, Joe Brown and Mary Green are brother and sister and

are selling their car to Susan Green, Mary’s daughter. The sale is exempt if the car is currently titled to “Joe Brown and/

or Mary Green” or “Joe Brown or Mary Green.” The sale is taxable if the car is titled to “Joe Brown and Mary Green.”

Vehicles that qualify for this exemption generally include cars, light trucks, and motorcycles. Vehicles that do not

qualify for this exemption are trailers and vehicles defined under K.S.A. 79-5101. These are:

- all state assessed vehicles (including utility vehicles);

- motor vehicles having a gross weight of more than 12,000 pounds;

- motor vehicles owned by car rental companies;

- recreational vehicles; and

- all other vehicles which are exempted from property tax under the provisions of the Kansas Statutes Annotated

or the Kansas Constitution.

To certify that a vehicle sale is exempt the enclosed Affidavit of Relationship (Form TR-215) must be completed.

Both the buyer and seller must attest to their family relationship and each of their signatures must be notarized.

Buyers must submit the affidavit to their county treasurer. The treasurer should forward the affidavit and title paperwork

to the Department of Revenue.

If you have questions about this exemption or its application, please call (785) 368-8222, or write to the Office of

Policy & Research, Kansas Department of Revenue, 915 SW Harrison St., Topeka, Kansas, 66625-0001.

Date Composed: 10/02/97

Date Modified: 11/05/97

Form Pub. Ks-1526 - Kansas Business Taxes For Motor Vehicle Transactions Page 30