KS Notice 22-02 Kansas Retailers' Sales Tax; Kansas Compensating Tax; Vehicle Rental Excise Tax 2022-07-01

Did Kansas repeal the accelerated monthly filing frequency for sales tax?

Short answer: Kansas Notice 22-02 explains that 2022 House Bill 2136 (Section 18) amended K.S.A. 79-3607 to repeal the "Accelerated Monthly" sales tax filing frequency, effective July 1, 2022. Retailers' sales tax filers, retailers' compensating use tax filers, and consumers' compensating use tax filers that were on Accelerated Monthly are moved to the regular "Monthly" frequency, with returns due on or before the 25th day of the following month (for example, a July return is due by August 25). To get credit for the accelerated payment made in June 2022 for the July 2022 return, filers enter that amount on the "Credit Memo" line of the July 2022 return; going forward, the accelerated payment option no longer appears and is no longer required. Because K.S.A. 79-5117 applies the retailers' sales tax filing frequencies to the vehicle rental excise tax, those excise tax filers on Accelerated Monthly also move to Monthly filing effective July 1, 2022.

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This page answers the general question as of 2022. Ezel answers yours, under current Kansas tax law, with citations.

Disclaimer: This is an official Kansas Department of Revenue Notice: public guidance the Department issues to explain Kansas tax law, most often a newly enacted statute. It states the Department's general interpretation and administration of the law; it does not have the force of law and is not a private ruling issued to any one taxpayer. It reflects the statutes, regulations, and rates in effect on its issue date and may since have been amended or superseded by a later notice or law change, so confirm it is still current before relying on it. 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.

View original ruling (PDF)

Plain-English summary

Kansas Notice 22-02 explains that 2022 House Bill 2136 (Section 18) amended K.S.A. 79-3607 to repeal the "Accelerated Monthly" filing frequency, effective July 1, 2022.

Who is affected. Retailers' sales tax filers, retailers' compensating use tax filers, and consumers' compensating use tax filers that fell within the "Accelerated Monthly" frequency are moved to the regular "Monthly" frequency as of July 1, 2022. As a monthly filer, your return is due on or before the 25th day of the following month (for example, a July return is due by August 25).

Credit for the June 2022 accelerated payment. To receive credit for the accelerated payment you made in June 2022 for your July 2022 return, enter the amount reported on the "Tax due for the first 15 days of the current month" line of your June 2022 return on the "Credit Memo" line of your July 2022 return. For July 2022 and after, the accelerated payment option no longer appears and accelerated payments are no longer required.

Vehicle rental excise tax. Under K.S.A. 79-5117, the retailers' sales tax filing frequencies also apply to the vehicle rental excise tax. So businesses reporting vehicle rental excise tax on an "Accelerated Monthly" basis are also moved to Monthly filing effective July 1, 2022, with returns due by the 25th of the following month.

(For reference, the amended K.S.A. 79-3607(b)(1) sets the general thresholds: annual filing at $400 or less, quarterly at $4,000 or less, and monthly above $4,000. Those thresholds were later raised effective January 1, 2024.)

What this means for you

Retailers and use tax filers previously on Accelerated Monthly

Starting July 1, 2022, you file as a regular Monthly filer -- returns and payment are due by the 25th of the following month.
Claim credit for your June 2022 accelerated payment on the "Credit Memo" line of your July 2022 return.
You no longer make (or see the option for) accelerated 15-day payments.

Vehicle rental businesses

If you filed vehicle rental excise tax on an Accelerated Monthly basis, you move to Monthly filing on the same schedule, due the 25th of the following month.

Common questions

What changed? The Accelerated Monthly filing frequency was repealed effective July 1, 2022; those filers move to regular Monthly filing.

When are Monthly returns due? On or before the 25th day of the following month.

How do I get credit for my June 2022 accelerated payment? Enter it on the "Credit Memo" line of your July 2022 return.

Does this affect vehicle rental excise tax? Yes -- those Accelerated Monthly filers also move to Monthly filing, because K.S.A. 79-5117 ties that tax to the sales tax filing frequencies.

Citations and references

House Bill 2136 (2022), Section 18 -- amended K.S.A. 79-3607 to repeal accelerated monthly filing.
K.S.A. 79-3607 -- sales tax return filing frequencies.
K.S.A. 79-5117 -- applies the retailers' sales tax filing frequencies to the vehicle rental excise tax.

Source

Landing page: Kansas Department of Revenue Policy Information Library
Original document: Notice 22-02

Original ruling text

Policy and Research
109 SW 9th Street Phone: 785-368-8222
PO Box 3506 Fax: 785-296-1279
Topeka KS 66601-3506 www.ksrevenue.gov
Mark A. Burghart, Secretary Laura Kelly, Governor

                                        NOTICE 22-02

    ACCELERATED MONTHLY FILING FREQUENCY FOR SALES TAX FILERS

                                        (JULY 1, 2022)

Accelerated Monthly-Sales Tax Filers

    During the 2022 Legislative Session House Bill 2136 was passed and signed into law.

Section 18 of the Bill amends K.S.A. 79-3607 to repeal the accelerated monthly filing frequency.
The amendment specifically provides that Retailers' sales tax filers, Retailers' compensating use
tax filers, and Consumers' compensating use tax filers that fall within the "Accelerated Monthly"
filing frequency will be moved to the "Monthly" filing frequency effective July 1, 2022.

   As amended, K.S.A. 79-3607(b)(1) now provides:

         (b)(1) When the total tax for which any retailer is liable under this act, does not exceed
   the sum of $400 in any calendar year, the retailer shall file an annual return on or before
   January 25 of the following year. When the total tax liability does not exceed $4,000 in any
   calendar year, the retailer shall file returns quarterly on or before the 25th day of the month
   following the end of each calendar quarter. When the total tax liability exceeds $4,000 in
   any calendar year, the retailer shall file a return for each month on or before the 25th day of
   the following month.

 As a "Monthly" filer, sales tax returns will be due on or before the 25th day of the following

month. For example, a July return will be due by August 25th.

   In order to receive credit for the accelerated payment made in June 2022 for your July 2022

return, enter the amount reported on the "Tax due for the first 15 days of the current month"
line from your June 2022 return on the "Credit Memo" line of your July 2022 return. Going
forward when filing a return for July 2022 and after, you will no longer see the accelerated payment
option and accelerated payments are no longer required.

Accelerated Monthly-Vehicle Rental Excise Tax Filers

   As provided in K.S.A. 79-5117, the filing frequencies for the retailers' sales tax shall also

apply to the vehicle rental excise tax. Therefore, based on the amendment to K.S.A. 79-3607
during the 2022 Legislative Session, those businesses that are reporting the vehicle rental excise
tax on an "Accelerated Monthly" basis, shall now be moved to a "Monthly" filing frequency
effective July 1, 2022. As a monthly filer, the vehicle rental excise tax return will be due on or
before the 25th day of the following month.

                              TAXPAYER ASSISTANCE

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.gov. If you have questions about this Notice, please contact:

                           Taxpayer Assistance Center
                          Kansas Department of Revenue
                          Scott Office Building, 1st Floor
                                 120 SE 10th Ave
                                  P. O. Box 3506
                             Topeka, KS 66601-3506
                               Phone: 785-368-8222
                                Fax: 785-291-3614

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