KS MEMO-SecondStageManConverters Vehicles 1990-03-01

How are vehicles from a second stage manufacturer or second stage converter titled and registered in Kansas?

Short answer: Through the manufacturer's certificate of origin, with specific title-application details. This Division of Vehicles memo defines a 'second stage manufacturer' (one who affixes a body, cab, or special-unit equipment to a chassis from a first stage manufacturer and sells the new vehicle to a dealer for resale) and a 'second stage converter' (one who adds to, subtracts from, or modifies a previously assembled vehicle and sells it). For both, the manufacturer's certificate of origin from the first and second stage manufacturers/converter is issued to the franchise dealer and given to the retail purchaser to surrender to the County Treasurer when applying for a certificate of title and registration. The memo specifies what goes on the title application -- the second stage manufacturer's/converter's trade name, the declared model year, and the first stage manufacturer's identification number -- and says applications for title were to be rejected after February 1, 1981, if proper documents were not submitted (memo revised 3/90).

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This page answers the general question as of 1990. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 1990
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Departmental Memorandum published in the Department's Policy Information Library: general written guidance stating the Department's interpretation and administration of Kansas tax law. It does not have the force of law, is not a private ruling issued to any one taxpayer, and a taxpayer with different facts should not assume the same treatment applies; a later change in a statute, regulation, or interpretation it relied upon may change the result, and portions may be superseded by newer guidance. Kansas state and local sales and use taxes are administered centrally by the Department, so there is no self-collected home-rule city tax outside its scope. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
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Plain-English summary

This Division of Vehicles memorandum (revised March 1990) sets out the Department's "legal opinion" on how vehicles from a second stage manufacturer or second stage converter are titled and registered in Kansas, "to promote uniformity among the other states and jurisdictions." The short version: the manufacturer's certificate of origin flows from the maker(s) to the franchise dealer to the retail buyer, who surrenders it to the County Treasurer, and the title application must show the second stage maker's trade name, the declared model year, and the first stage manufacturer's identification number.

  • Second Stage Manufacturer — the definition. "[A]ny person who assembles, installs, or permanently affixes a body, cab, or special unit equipment to a chassis supplied by a first stage manufacturer, distributor, or other supplier and sells the resulting new vehicles to a new vehicle dealer for resale in the state." The "[m]anufacturers certificate of origin issued by the first and second stage manufacturers will be issued to the franchise dealer and given to the retail purchaser for surrender to the County Treasurer" at title/registration. The title application indicates: (1) the trade name of the second stage manufacturer (e.g., Winnebago, Coachman); (2) the model year as declared by the second stage manufacturer; and (3) the identification number of the first stage manufacturer (e.g., Ford, Chevrolet, Dodge).
  • Second Stage Converter — the definition. "[A]ny person who is engaged in the business of adding to, subtracting from, or modifying previously assembled or manufactured vehicles and sells the resulting converted vehicle as retail or wholesale." The certificate of origin from the first stage manufacturer and second stage converter likewise goes to the franchise dealer and then the retail purchaser for surrender to the County Treasurer. Here the title application indicates: (1) the trade name of the second stage converter; (2) the model year as declared by the first stage manufacturer; and (3) the identification number of the first stage manufacturer.
  • Effective date and enforcement. The procedures "will become effective immediately and applications for certificates of title will be rejected after February 1, 1981, if proper documents are not submitted at the time of application for certificate of title." The memo carries a "(Revised 3/90)" notation.

What this means for you

Second stage manufacturers and converters (e.g., RV and specialty-body builders)

Make sure the manufacturer's certificate of origin passes correctly from you (and the first stage manufacturer) to the franchise dealer and on to the retail buyer, because the buyer surrenders it to the County Treasurer to get a title. Getting the certificate-of-origin chain right is what lets your customer title and register the vehicle.

Note the difference in which model year goes on the title

For a second stage manufacturer, the title shows the model year the second stage manufacturer declares. For a second stage converter, the title shows the model year the first stage manufacturer declares. In both cases the first stage manufacturer's identification number is used.

County treasurers and dealers processing these titles

Confirm the application lists the correct trade name, the correct declared model year (per the definitions above), and the first stage manufacturer's identification number, and that the proper certificate-of-origin documents are present — the memo directs that incomplete applications be rejected.

Common questions

Q: What is a "second stage manufacturer" versus a "second stage converter"?
A: A second stage manufacturer affixes a body, cab, or special-unit equipment to a chassis from a first stage manufacturer and sells the new vehicle to a dealer for resale. A second stage converter adds to, subtracts from, or modifies an already-assembled vehicle and sells the converted vehicle at retail or wholesale.

Q: How does the buyer title one of these vehicles?
A: The manufacturer's certificate of origin is issued to the franchise dealer and given to the retail purchaser, who surrenders it to the County Treasurer when applying for a certificate of title and registration.

Q: Whose model year and ID number go on the title?
A: The first stage manufacturer's identification number is used in both cases. For a second stage manufacturer the model year is the one it declares; for a second stage converter the model year is the one the first stage manufacturer declares.

Citations and references

  • Kansas motor vehicle titling procedure (Division of Vehicles) — the memo states its second stage manufacturer and converter definitions are "defined by statute" and issued as the Department's legal opinion, but it does not cite specific K.S.A. section numbers. It governs the certificate-of-origin flow and the required title-application entries, and directs rejection of title applications lacking proper documents.

Source

Original ruling text

Memorandum

Body:

KANSAS DEPARTMENT OF REVENUE
Division of Vehicles
Robert B. Docking State Office Building
Topeka, Kansas 66626-0001

SECOND STAGE MANUFACTURERS AND CONVERTERS

As authorized by Kansas statutes and to promote uniformity among the other states and jurisdictions, the following legal opinion regarding second stage manufacturer or a second stage converter has been issued.

A Second Stage Manufacturer is defined by statute as “any person who assembles, installs, or permanently affixes a body, cab, or special unit equipment to a chassis supplied by a first stage manufacturer, distributor, or other supplier and sells the resulting new vehicles to a new vehicle dealer for resale in the state.”
(a) Manufacturers certificate of origin issued by the first and second stage manufacturers will be issued to the franchise dealer and given to the retail purchaser for surrender to the County Treasurer when application is made for certificate of title and registration.
(b) Application for certificate of title will be completed by indicating:

  1. The trade name of the second stage manufacturer, such as Winnebago, Coachman, etc.
  2. The model year as declared by the second stage manufacturer.
  3. The identification number of the first stage manufacturer, such as Ford, Chevrolet, Dodge, etc.

A Second Stage Converter is defined by statute as “any person who is engaged in the business of adding to, subtracting from, or modifying previously assembled or manufactured vehicles and sells the resulting converted vehicle as retail or wholesale. Manufacturers certificate of origin issued by the first stage manufacturer and second stage converter will be issued to the franchise dealer and given to the retail purchaser for surrender to the County Treasurer when application for certificate of title and registration are made.
Application for a certificate of title will be completed by indicating:

  1. Trade name of second stage converter.
  2. The model year as declared by the first stage manufacturer.
  3. The identification number of the first stage manufacturer.

These procedures will become effective immediately and applications for certificates of title will be rejected after February 1, 1981, if proper documents are not submitted at the time of application for certificate of title.

(Revised 3/90)

Date Composed: 08/07/1998 Date Modified: 10/09/2001

Table 1

Identifying Information: Second Stage Manufacturers and Converters

Table 2

Tax Type: Vehicles
Brief Description: Second Stage Manufacturers and Converters
Keywords:
Effective Date: 03/01/1990

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