Form Pub. Ks-1526 - Kansas Business Taxes For Motor Vehicle Transactions Page 6
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442) The motor vehicle, semitrailer, pole trailer or
aircraft will not be registered in Kansas or based
VEHICLE TRANSACTIONS
in Kansas.
BETWEEN NON-DEALERS
3) The motor vehicle, semitrailer, pole trailer or
aircraft will be removed from the state of Kansas
within ten (10) days.
To document the exempt sale of a motor vehicle,
ISOLATED or OCCASIONAL SALE
semitrailer, pole trailer or aircraft to a nonresident, an
Affidavit of Delivery, Form ST-8B, must be completed
When any person (individual, partnership,
and retained by the dealer. This form is commonly
corporation, etc.) other than a licensed Kansas motor
referred to as a 10-day drive out permit. Like any other
vehicle dealer sells a vehicle it is referred to as an
exemption certificate, the original of this affidavit must
isolated or occasional sale. The seller is not
be kept with the dealer’s other sales tax records for at
responsible for collecting, reporting and remitting
least three years, and is subject to audit by KDOR.
Kansas retailers’ sales tax to KDOR on isolated or
occasional sales of vehicles. Rather, the purchaser is
IMPORTANT: Motorized bicycles and trailers
required to pay the sales tax due to the County
(other than semi-trailers and pole trailers
Treasurer when registering the vehicle in the Kansas
defined earlier herein), or any other vehicle that is not
county in which he or she is a resident.
self-propelled, cannot be sold exempt from sales tax to
a nonresident of Kansas. Only motor vehicles,
Tax Base - Sales Price
semitrailers, pole trailers or aircraft as defined by
K.S.A.8-126, can be purchased sales tax exempt by
The sales or use tax base for the isolated or
nonresidents of Kansas under this exemption. See
occasional sale of a motor vehicle or trailer is the actual
Revised Notice 04-13 for a further discussion of this
selling price of the vehicle. See K.S.A. 79-3603(o). The
issue. (Aircraft transactions are discussed herein).
County Treasurer will calculate the sales tax due based
on the sale price as entered on the vehicle title. A Bill of
A Kansas City, Kansas dealer sells a
Sale is NOT required if the sale price is entered on the
pickup for $19,500 to a Missouri resident.
vehicle title.
The dealer is not required to collect
Kansas Retailers’ Sales Tax on the
Pursuant to the provisions of K.A.R. 92-19-30, the
$19,500, provided that the pickup will be removed from
sales tax on the isolated or occasional sale of motor
Kansas within ten (10) days and the pickup will not be
vehicles or trailers shall be computed on its fair market
registered in Kansas.
value by the Director of Taxation under either of the
following circumstances: 1) The selling price of the
In the previous example, the Kansas dealer may
vehicle is unknown; or, 2) the stated selling price is not
issue the Missouri buyer a 30-day permit. The buyer
indicative of, and bears no reasonable relationship to,
would then register the pickup in his or her Missouri
the fair market value of the vehicle.
county of residence and pay applicable Missouri
The actual selling price shall be the base for
compensating use taxes. If the Missouri resident intends
computing the tax on the sale of wrecked or damaged
to register the pickup in Kansas, or if the vehicle is not
vehicles.
removed from Kansas within ten (10) days of the sale,
the dealer is required to collect sales tax.
TRADE-IN ALLOWANCE
LEMON LAW
In an isolated or occasional sale (trade), the fair
market value of any motor vehicle or trailer traded in by
Kansas law K.S.A. 50-645(c) provides that when a
the purchaser to the seller may be deducted from the
manufacturer or its authorized dealer is unable to
selling price.
conform a motor vehicle to any applicable warranty after
a reasonable number of attempts, the purchaser is
Mrs. Able trades her vehicle plus $500 to
authorized to return the vehicle and obtain a refund of
Mrs. Brown. Mrs. Able owes sales tax to
the full purchase price including all collateral charges,
the County Treasurer only on the $500.
such as Kansas sales tax, less a reasonable allowance
Mrs. Brown does not owe any sales tax.
for the purchaser’s use of the vehicle. This provision is
commonly referred to as the Lemon Law.
T
T
-
A
F
I
O
HE
RADE
IN
LLOWANCE
OR
SOLATED OR
CCASIONAL
A car, originally purchased for $20,000, is
S
A
L
M
V
T
ALES
RE
IMITED TO
OTOR
EHICLES AND
RAILERS
returned to a Kansas dealership pursuant
to the provisions of the above-described
K.S.A. 79-3603(o) provides that “in determining the
Lemon Law. $19,000 is refunded to the
base for computing the tax on such isolated or occasional
customer. Kansas sales tax is refunded on the $19,000.
sales, the fair market value of any motor vehicle or trailer
6
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