Who files the release of a Kansas tax warrant after a taxpayer pays a delinquent tax?

Plain-English summary

Kansas Notice 23-13 explains a new procedure for releasing tax warrants, created by 2023 House Bill 2002 (New Section 1, now K.S.A. 75-5148a) and effective January 1, 2024.

How tax warrants work. If a taxpayer has a delinquent tax obligation, the Department may issue a tax warrant, which is filed with the district court and places a lien on the taxpayer's assets. When the taxpayer pays the delinquent obligation, the Department generates a "satisfaction of judgment," which must be filed with the district court (with a filing fee) so the court knows the debt is paid and the lien can be released. If the satisfaction of judgment is not filed, the lien remains in place.

The old way. Before January 1, 2024, the taxpayer received the satisfaction of judgment directly from the Department and was responsible for filing it with the district court and paying the court's filing fee.

The new way. On and after January 1, 2024, under K.S.A. 75-5148a, the Department is responsible for filing the satisfaction of judgment with the district court and for paying the filing fee. Because the Department now handles and pays for the filing, the taxpayer's full payment must include the tax owed plus any interest, penalty, and fees -- including the Department fees required for the filing and release or satisfaction of the warrant.

This applies to all tax debts paid on or after January 1, 2024, regardless of when the warrant was originally issued.

What this means for you

Taxpayers paying off a delinquent Kansas tax debt

• Starting January 1, 2024, you no longer have to file the release of your tax warrant with the district court yourself -- the Department does it and pays the court filing fee.
• Your payoff amount will include the tax, interest, penalty, and Department fees that cover the filing and release, so the total to clear the warrant may be higher than just the back tax.
• Once you pay in full, the Department files the satisfaction of judgment so the lien can be released.

Tax professionals

• When helping a client satisfy a tax warrant on or after January 1, 2024, expect the payoff to include the Department's filing/release fees, and confirm the Department will file the release rather than the client.

Common questions

Who files the warrant release now? The Kansas Department of Revenue, for tax debts paid on or after January 1, 2024.

Who pays the district court filing fee? The Department -- but the taxpayer's full payment must cover the Department fees required for the filing and release.

Does it matter when the warrant was issued? No -- the new procedure applies to all tax debts paid on or after January 1, 2024, regardless of when the warrant was issued.

What is a satisfaction of judgment? The document, filed with the district court, that shows a tax debt has been paid so the lien from the tax warrant can be released.

Citations and references

• House Bill 2002 (2023), New Section 1 -- enacted K.S.A. 75-5148a.
• K.S.A. 75-5148a -- on and after January 1, 2024, requires the Secretary of Revenue to file the release of a tax warrant upon the taxpayer's full payment of the tax owed, including interest, penalty, and the fees required for the filing and release or satisfaction of the warrant.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 23-13

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 23-13

                  NEW PROCEDURE FOR FILING TAX WARRANT RELEASE

                                    (DECEMBER 28, 2023)

   During the 2023 Legislative Session House Bill 2002 was passed and signed into law. New

Section 1 of the Bill, now K.S.A. 75-5148a, provides that on and after January 1, 2024, when a
taxpayer pays a delinquent tax obligation for which a tax warrant has been issued, the Kansas
Department of Revenue is responsible for filing the release of such warrant with the district court.
This new procedure applies to all tax debts paid on or after January 1, 2024, regardless of when
the associated tax warrant was issued. Specifically, the statute states:

         K.S.A. 75-5148a. On and after January 1, 2024, for any warrant issued by the
   secretary of revenue, or the secretary's designee, that is the result of the taxpayer's
   failure to pay a tax owed to the state of Kansas, the secretary shall file a release of such
   warrant in the county where such warrant is docketed upon the taxpayer's full payment
   of the tax owed, including any interest, penalty and fees required for the filing and
   release or satisfaction of the warrant.

   To understand this change, it is necessary to understand the tax warrant process. If a taxpayer

has a delinquent tax obligation, the Department may issue a tax warrant. The tax warrant is filed
with the district court, which places a lien on the taxpayer's assets. If the taxpayer pays the
delinquent tax obligation for which the tax warrant has been issued, the Department generates a
document called a "satisfaction of judgment." The satisfaction of judgment must be filed with the
district court where the tax warrant was filed. There is a fee, paid to the district court, to file the
satisfaction of judgment. If the satisfaction of judgment is not filed, the district court has not been
officially informed that the tax debt was paid and the lien will remain in place.

   Before January 1, 2024, the taxpayer receives the satisfaction of judgment directly from the

Department of Revenue and the taxpayer is responsible for filing the satisfaction of judgment with
the district court. The taxpayer must also pay the filing fee to the district court.

    On and after January 1, 2024, pursuant to K.S.A. 75-5148a, the Department is responsible

for filing the satisfaction of judgment with the district court. This includes paying the filing fee to
the district court. Therefore, the taxpayer must make full payment of the tax owed, including any
interest, penalty, and fees including the Department fees required for the filing and release or
satisfaction of the warrant, to satisfy his or her tax debt.

                              TAXPAYER ASSISTANCE

 Additional copies of this notice, forms or publications are available from our website,

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: 785-296-6124
                Hearing Impaired TTY (Kansas Relay): 800-766-3777
                                Fax: 785-296-1279