Ezel / Tax Rulings / KS
KS Notice 02-07 Sand and Gravel 2002-07-01

What penalties and interest applied to late Kansas sand-royalty reports and payments beginning July 1, 2002?

Short answer: Beginning July 1, 2002, delinquent Kansas sand-royalty payments accrued interest at 0.667% per month and a tax penalty equal to 10% of the royalty due; fraud increased the penalty to 50% of the royalty. Filing Form SR-89 late also triggered a separate $25-per-day delinquent-report penalty for every day the report was late. These are the historical rates stated in Notice 02-07 and should not be assumed current without checking later law or guidance.

Apply this to your situation

This page answers the general question as of 2002. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2002
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 Notice providing general public guidance, not a private ruling issued to one taxpayer. It does not have the force of law and states historical penalty and interest rates effective in 2002; later law or guidance may change the result. The prior-notices index labels the source link 07-02, but the official metadata and body both identify the document as Notice 02-07, which is the identifier used here. 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.
View original ruling (PDF)

Plain-English summary

2002 Senate Bill 472 authorized penalties and interest for delinquent Kansas sand-royalty reports and payments, effective July 1, 2002.

Notice 02-07 stated the following historical amounts:

  • Interest: 0.667% per month on the royalty due.
  • Payment penalty: 10% of the royalty due.
  • Fraud penalty: 50% of the royalty amount.
  • Late-report penalty: $25 per day for each day Form SR-89 was late.

The Department said Form SR-89 would be revised to include penalty and interest calculations.

What this means for you

Sand-royalty filers

Late payment and late reporting produced separate costs: monthly interest and a percentage penalty on the royalty, plus a daily penalty for the report itself.

Historical-rate warning

These figures were stated for the rules effective July 1, 2002. Confirm later statutes and forms before calculating a current liability.

Common questions

Q: What was the monthly interest rate?
A: 0.667% per month on the royalty due.

Q: What was the ordinary tax penalty?
A: 10% of the royalty due.

Q: What was the fraud penalty?
A: 50% of the royalty amount.

Q: Was there also a penalty for the late report?
A: Yes. Form SR-89 carried a $25-per-day penalty for each day late.

Citations and references

  • 2002 Senate Bill 472 — authority for penalty and interest on delinquent sand-royalty reports and payments.
  • Form SR-89 — sand-royalty reporting form.

Subject

Penalties for Late Filing of Sand Royalty Reports

Source

Original ruling text

Notice
Notice Number: 02-07
Tax Type: Sand and Gravel
Brief Description: Penalties for Late Filing of Sand Royalty Reports
Keywords:
Approval Date: 07/01/2002

Body:
Division of Tax Operations

                                                 NOTICE 02-07


                     Penalties for Late Filing of Sand Royalty Reports

Senate Bill 472 (2002 Legislative Session) authorizes the assessment of penalty and interest for delinquent Sand
Royalty reports and tax payments, effective July 1, 2002.

The current interest rate is 0.667% per month on the amount of royalty due. The tax penalty is 10% of the royalty due,
and 50% of the amount of the royalty in cases of fraud. Furthermore, there is a delinquent report penalty of $25.00 per
day for each day the report (Form SR-89)
is late.

The Sand Royalty reporting Form, SR-89, will be revised to allow for the addition of penalty and interest. The form is
available at our web site, www.ksrevenue.org.

If you have any questions, please call the Mineral Tax Section in Topeka at 296-3500, or toll free at 1-877-526-7738
and press “1” to speak to a representative (listen briefly), press “5” for Business Taxes (listen briefly) and then press
“6” for Mineral Tax.

Date Composed: 06/28/2002 Date Modified: 07/02/2002

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