How did House Bill 2663 change the Kansas sand royalty effective July 1, 1996?

Plain-English summary

This notice to sand dredging companies summarizes House Bill 2663 (1996), which amended K.S.A. 70a-102, effective July 1, 1996:

• The sand royalty rate increased to $.15 per ton of sand removed.
• The Secretary of Revenue may set, by rule and regulation, the compensation for other materials removed from rivers.
• Former exemptions were repealed so that only sand removed for a person's own domestic use is exempt.

A revised monthly reporting form (multiple locations on one report) applied beginning with the July 1996 return, due August 15, 1996, reporting all tons removed and not returned -- including tonnage sold for use outside Kansas. Because of a low delinquency rate, a surety bond is no longer required, and existing sand royalty bonds may be canceled.

What this means for you

If your business dredges sand from Kansas rivers, your royalty rose to $0.15 per ton on July 1, 1996, essentially all removed sand is now subject to the royalty (only your own domestic-use sand is exempt), and you no longer need a surety bond.

Common questions

Q: What is the Kansas sand royalty rate after July 1, 1996?
A: $0.15 per ton of sand removed; only sand removed for a person's own domestic use is exempt.

Q: Is a surety bond still required for sand royalty?
A: No. Because of the low delinquency rate, a surety bond is no longer required and existing bonds may be canceled.

Citations and references

• 1996 House Bill 2663 (amends K.S.A. 70a-102, sand royalty)
• K.S.A. 70a-102 (sand royalty rate)

Subject

Sand Royalty Fee Increase

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 96-03

Original ruling text

Notice
Notice Number: 96-03
Tax Type: Sand and Gravel
Brief Description: Sand Royalty Fee Increase
Keywords:
Effective Date: 07/01/1996

Body:
Division of Taxation

                                   SAND ROYALTY FEE INCREASE

The 1996 Kansas Legislature passed, and the Governor signed into law, House Bill 2663. This bill amends K.S.A. 70a-102 to
increase the sand royalty rate, and to repeal certain former exemptions. The amendments are effective July 1, 1996.

The amended law:

         - Increases the sand royalty rate to $.15 per ton for sand removed.
         - Authorizes the Secretary of Revenue to determine, by rule and regulation, the amount of compensation to be paid for
         other materials removed from rivers.
         - Allows only sand removed for a person's own domestic use to be exempted from the royalty.


  Attached to this notification are the revised:

  Sand Royalty Monthly Reporting Form
  For ease of reporting, the revised reporting form allows multiple locations to be filed on a single report. This form is to be used
  beginning with the July, 1996 return, due August 15, 1996. The reporting form asks for the number of tons that are removed
  and not returned, because all tons are subjected to the royalty. The only exempt sand is that removed by a person for domestic
  use. Also required on the reporting form is the tonnage sold for use outside Kansas. This amount would be included in the tons
  that are removed and not returned column.

  Contract
  The Contract has been revised to reflect changes in the law. Please sign and return with the July, 1996 reporting form, due
  August 15, 1996.

  Based on a low delinquency rate on royalty payments, a surety bond is no longer required. All sand royalty bonds may be
  canceled.

  If you have questions, please call the Business Tax Bureau at (913) 296-2461.


  NOTICE 96-03 (7/1/96)
  TO: Sand Dredging Companies
  RE: Sand Royalty Fee Increase

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

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