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KS Notice 96-02 Motor Vehicle Fuel Tax 1996-07-06

How did Senate Bill 704 change the Kansas petroleum products inspection fee on July 1, 1996?

Short answer: Effective July 1, 1996, Senate Bill 704 modified the Kansas Petroleum Products Inspection Law as part of a Department of Agriculture fuel-quality package. The changes: the Petroleum Products Inspection Fee increased from $.01 to $.015 per barrel (one barrel equals 50 U.S. gallons); diesel fuel became subject to the fee; the fee now applies to exports and U.S. government sales; and the fee no longer applies to kerosene.

Apply this to your situation

This page answers the general question as of 1996. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 1996
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 describes 1996 law as it stood then; later law and rates may change the result, so verify the current statute before relying on it. 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

This notice to Kansas Petroleum Products Inspection Fee filers summarizes Senate Bill 704 (1996), which amended the Petroleum Products Inspection Law as part of a Department of Agriculture fuel-quality and Weights-and-Measures package. Effective July 1, 1996:

  • The inspection fee increased from $.01 to $.015 per barrel (one barrel = 50 U.S. gallons).
  • Diesel fuel became subject to the fee.
  • The fee now applies to exports and U.S. government sales.
  • The fee no longer applies to kerosene.

This is an inspection fee administered in connection with motor-fuel reporting, distinct from the motor fuel excise tax itself.

What this means for you

If you manufacture, import, or distribute petroleum products in Kansas, from July 1, 1996 your inspection fee rose to $0.015 per barrel, diesel and exports/government sales came into the fee, and kerosene dropped out.

Common questions

Q: What is the Kansas petroleum products inspection fee after July 1, 1996?
A: $0.015 per barrel (a barrel is 50 U.S. gallons), up from $0.01.

Q: Did the fee change which fuels are covered?
A: Yes. Diesel fuel and exports/U.S. government sales became subject to the fee, and kerosene was removed from it.

Citations and references

  • 1996 Senate Bill 704 (Petroleum Products Inspection Law amendments)

Subject

Petroleum Products Inspection Fee Increase

Source

Original ruling text

Notice
Notice Number: 96-02
Tax Type: Motor Vehicle Fuel Tax
Brief Description: Petroleum Products Inspection Fee Increase
Keywords:
Effective Date: 07/01/1996

Body:

                                        PETROLEUM PRODUCTS INSPECTION FEE INCREASES

 The 1996 Kansas Legislature passed a law (SB704) modifying the existing Petroleum Products Inspection Law.
 These changes were part of a comprehensive package the Kansas Department of Agriculture introduced to
 provide for a fuel quality program and to increase accuracy within the Department of Agriculture's Weights and
 Measures Program.

 The following items now in the Petroleum Products Inspection Law will change the reporting and payment
 requirements of the Petroleum Products Inspection Fee beginning July 1, 1996:
           - The Petroleum Products Inspection Fee is increasing from $.01 to $.015 per barrel (one barrel
           equals 50 U.S. gallons).

                    - Diesel fuel is subject to the Petroleum Products Inspection Fee.

                    - The Petroleum Products Inspection Fee applies to exports and U.S. government sales.

                    - The Petroleum Products Inspection Fee no longer applies to kerosene.

 If you have any comments or questions regarding this fee, please call this office at (913) 296-2411.

 NOTICE 96-02 (7/6/96)
 TO: Kansas Petroleum Products Inspection Fee Filers
 RE: Changes in Petroleum Products Inspection Fee (Oil Inspection Fee)

Date Composed: 10/02/1997 Date Modified: 10/10/2001

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