Property Valuation
Motor Carriers - Frequently Asked Questions
WHAT IS THE PURPOSE OF THE RENDITION?
The purpose of the Rendition is to comply with Kansas statutes
which provide for assessment and taxation of over-the-road
motor vehicles and rolling equipment owned, operated, leased,
or used by common, contract, or exempt motor carriers operating
in or through Kansas.
WHO MUST FILE?
Anyone holding, on January 1st of any year, a haul-for-hire,
common, exempt, contract, or I.C.C authority granted by the
Kansas Corporation Commission or who is required to register
motor carrier equipment pursuant to 49 U.S.C. 11506 or registered
equipment to operate in Kansas in their base state through
single state registration must file a property tax rendition
with the State of Kansas.
WHAT IF I DID NOT USE MY INTRASTATE OR INTERSTATE AUTHORITY?
If you are not a resident of Kansas and did not use your common,
contract, or exempt authority in Kansas during the preceding
year, you must still complete Kansas Motor Carrier Property
Rendition Schedule I. On Schedule I in the carrier information
Section check the box in front of the statement “The
carrier did not operate in any “haul-for-hire” capacity
in or through Kansas during the calendar year”.
Kansas residents must list and render all equipment registered for use under their private or haul-for-hire authority.
WHAT IF I DO NOT HAVE ANY EQUIPMENT ON JANUARY 1?
If you disposed of all of your equipment during the preceding
year and had no equipment as of January 1 of the taxing year,
complete your rendition indicating the deletion dates (dates
you disposed of the equipment) in column “N” of
the appropriate rendition forms and attach to the Schedule
1 a letter of explanation and intent with respect to your operating
authority.
WHEN MUST I FILE?
You must file the original completed rendition with the Division
of Property Valuation, Robert B. Docking State Office Bldg.,
915 SW Harrison St., Topeka, Kansas 66612-1585, on or before
March 20 of the taxing year.
Third-Party Preparation
The fact that you may hire a third party for preparation of your
rendition (such as a carrier service, attorney, or accountant),
does not relieve you of your obligation to file your rendition
on time. It is your responsibility to keep in touch with the
third party to ensure timely completion and filing. Third party
preparers must request a special “third party preparation
form” from the Division of Property Valuation (this office)
for each carrier for whom they wish to file.
Mailing Tips
Carriers occasionally inform us that their renditions were lost
in the mail. Since timely filing is entirely the carrier's
responsibility, it is strongly recommended that you mail the
rendition “Certified Mail - Return Receipt Requested” to
protect the company against the application of a late filing
penalty.
HOW DO I GET FORMS?
As a courtesy to motor carriers doing business in Kansas, The
Division of Property Valuation mails forms in February to all
motor carriers holding authorities from the Kansas Corporation
Commission on January 1 of the taxing year. Such mailings are
made to the address of the carrier as listed with the Kansas
Corporation Commission or the Single State Registration Office
in the carriers base state. If you do not receive forms by
March 1, contact the Division of Property Valuation for assistance.
Initial and/or replacement sets of motor carrier rendition forms may be requested from the Division of Property Valuation after March 1st of any year. (Division of Property Valuation, Robert B. Docking State Office Bldg., 915 SW Harrison St., Topeka, Kansas 66612-1585).
Data Processing Form Preparation
Print-outs from data processing equipment are accepted by the
Division providing they:
1. Conform to the general and specific form instructions and
include the same information requested in the rendition;
2. Contain sufficient spacing between lines to allow handwritten
valuation (double-spacing minimal);
3. Conform to the format of the state's forms, including blank
columns necessary to the assessment.
NOTE: Schedule 1 and Schedule 3 must be completed using an original form provided by the Division of Property Valuation.
WHAT HAPPENS IF MY FILING IS LATE?
If your rendition is received late (postmarked after March 20)
a fifty percent (50%) additional assessed valuation penalty
will be added to your assessment.
CAN I OBTAIN AN EXTENSION OF THE FILING TIME?
Kansas's statutes provide the Director of Property Valuation
with the authority to extend the filing deadline for just cause;
however, all requests for an extension must be in writing and
made prior to March 20 for consideration. Clearly state in
your letter that you are requesting an extension of the filing
deadline and the reasons why such a request is necessary.
Because of the time frame in which the state must complete its work, extensions are typically limited to two weeks.
WHAT HAPPENS IF I DO NOT FILE?
Failure to file will result in a statutory jeopardy assessment
for the equipment we have reason to believe was in your possession
on January 1. A fifty-percent (50% additional assessed valuation)
penalty will be imposed.
CAN I CORRECT MY FILING? - CAN I HAVE THE JEOPARDY ASSESSMENT
CHANGED?
Yes. You have one year from the filing deadline of March 20 in
which to amend or correct your original filing.
IS THERE ANY WAY THE PENALTY CAN BE REDUCED OR REMOVED?
Kansas's statutes provide the Director of Property Valuation
with authority to waive or reduce the penalty for just cause.
All such adjustments are based on the evidence and merits of
the case and are not automatic. Requests must be made in writing
and addressed to the Director, specifically asking that the
penalty be waived or reduced and explaining the reasons for
the late filing.
WHAT DO I LIST ON MY RENDITION?
You are required to list all motor carrier equipment (powered
and non-powered) which was owned, leased, used or operated
in or through Kansas under your haul for hire authorities during
the preceding year. If you disposed of all or part of your
equipment during the preceding year, indicate the deletion
date (the date you disposed of the equipment) in Column “N” of
the appropriate rendition form.
NOTE: Holders of both Common and Private Permits - if you operated any equipment in Kansas under both your common, contract, or exempt authority and your private authority, you must report that equipment on the appropriate motor carrier rendition schedule.
WHAT SHOULD I DO IF A VEHICLE HAS BEEN WRECKED?
If a vehicle has been wrecked on or before January 1, not repaired
by January 1, and is still owned or leased by the company you
still must list the vehicle on the proper motor carrier form.
You may note on the schedule that the equipment has been wrecked
and provide a estimate of the retail value in “optional
column” on the appropriate schedule.
WHAT MILEAGE DO I SHOW ON MY RENDITION?
The mileage information you must report is in the Carrier Information
Section and is divided into two (2) parts:
1. In box one (1) you are to report any and all mileage accumulated
by the vehicles operating under your authority while traveling
in Kansas during the preceding year. It may also include mileage
of vehicles, which are no longer under your control on January
1.
2. In box two (2) you are to report the total mileage accumulated
under your authority by any and all vehicles which at one time
or another came into Kansas during the preceding year. This includes
mileage accumulated by those vehicles while operating outside
the state and may also include mileage of vehicles which are
no longer under your control on January 1.
HOW AM I ASSESSED AND TAXED BY THE STATE?
The Division of Property Valuation calculates the assessment
and resulting tax for motor carriers.
What is Assessed?
The motor carrier rendition filed by the carrier on or before
March 20 of each year provides the listing of vehicles entering
Kansas during the preceding calendar year. Vehicles which remained
under the motor carrier's control as of January 1 of the taxing
year are assessed by the state.
What is the Basis of Assessment?
The assessment is in two parts, powered equipment and non-powered
equipment.
The assessment for powered equipment is thirty percent (30%) of the allocated market value (usually the average retail value) of the equipment on January 1 of the taxing year. The Division uses the National Market Reports, Inc. “The Truck Blue Book” Maclean Hunter Bldg., 29 N. Wacker Drive, Chicago, Illinois 60606-9979 as a source in calculating the market value.
For non-powered equipment, the assessment is twenty-five percent (25%) of the retail cost when new less seven-year straight-line depreciation, except that as long as the property is being used the base value will not be less than 20% of the retail cost when new.
How is the Value Allocated to Kansas?
The assessed value of the equipment is allocated to Kansas in
proportion to its use within the state. The amount of use within
the state is determined by the “mileage ratio”.
The “mileage ratio” is computed by dividing the total miles traveled by powered vehicles under the motor carrier's control which entered Kansas at any time during the preceding year, into the total miles those vehicles traveled within Kansas.
How is the Amount of Tax Determined?
The assessed value thus allocated is multiplied by the motor
carrier mill levy to obtain the dollar amount of tax.
How is the Motor Carrier Mill Levy Determined?
The motor carrier mill levy is obtained by dividing the total
of all property taxes levied in the previous year by the assessed
value on January 1 of all property, both real and personal,
valued within the state the previous year.
If you have questions about your rendition, assessment, tax or tax payment, call the Motor Carrier Section of the Division of Property Valuation at (785) 296-4510 or write to:
Kansas Department of Revenue
Division of Property Valuation
Robert B. Docking State Office Bldg.
915 SW Harrison St.
Topeka, Kansas 66612-1585
NOTE: In any written or oral communication with the Kansas Department of Revenue, Division of Property Valuation's Motor Carrier Section concerning your motor carrier rendition, tax or operations, please make reference to your property tax filing number (DOR No.).
MOTOR CARRIER ASSESSMENT AND TAXATION CALENDAR
February - Blank forms sent to carriers
March 20 - Last day filing (rendition) can be mailed without
receiving the 50% late filing fee
November 1 - Tax becomes due (K.S.A. 79-1804)
December 20 - Last day first half of taxes can be paid without
penalty
May 10 of the following year - Last day second half of taxes
can be paid without penalty
WHEN MUST I PAY MY TAX?
You may pay your tax obligation without penalty between the receipt
of the tax bill (on or about August 1) and the date the tax
becomes delinquent.
If your total tax is less than $50.00, then its payment becomes delinquent if postmarked or made after December 20 of the taxing year. If your total tax obligation is greater than $50.00 it may be paid in total on or before December 20 of the taxing year or it may be paid in two equal installments. The first installment is due on or before December 20 of the taxing year and the second on or before May 10 of the year following the taxing year.
The privilege of paying in two equal installments is voided if the first payment is delinquent; therefore, if the first payment is delinquent, the second payment becomes due on December 20 of the taxing year and is by default delinquent.
If payment, either first half or total, is postmarked or made after December 20 of the taxing year the payment is considered delinquent.
If the first payment was made timely and the second payment is postmarked or made after May 10 of the year following the taxing year, the amount of the second payment is considered delinquent.
Anytime taxes become due and are not paid (delinquent), the amount due shall draw interest at the statutory rate from the due date to the date of payment.
Failure to make timely payments of taxes due will trigger state enforcement actions.
HOW DO I APPEAL MY VALUATION?
You have three opportunities to appeal. Two when the valuation
is placed upon your equipment by the Division of Property Valuation
Motor Carrier Section and one when you pay the tax:
1. The first two opportunities are governed by K.S.A. 79-6a04 and begun within fifteen (15) days of the date of the mailing of your tax bill or within thirty days from the Divisions “final action.” Tax bills are usually sent on or before August 1 of each year.
K.S.A. 79-6a04 states in part that: “...The director of property valuation shall cause to be sent to each motor carrier on or before the first day of August a statement of the amount of the valuation or assessment, the rate of levy and the amount of the tax. The determination contained in such statement shall not require an adjudicative proceeding under the Kansas administrative procedure act. The statement shall inform the motor carrier of the right to an informal conference as provided in this section. The failure to request an informal conference shall not preclude any appeal under K.S.A. 74-2438, and amendments thereto. If a motor carrier has any objection to the statement as issued, the motor carrier must, within 15 days of the date of mailing of such notice, notify the director of property valuation in writing of such objection, setting forth the basis therefor and all facts relating thereto. Within 30 days of the date of receipt by the director of property valuation of such written objection, the director shall hold an informal conference with the motor carrier and shall issue a written finding, ruling, order, decision or other final action thereon, which finding, ruling, order, decision or other final action shall become effective for purposes of the appeal as provided by K.S.A. 74-2438, and amendments thereto, three days following the mailing of a copy thereof to the motor carrier. …”
2. The third appeal opportunity is governed by K.S.A. 79-6a10
and can be taken advantage of at the time you pay your property
tax obligation provided such payment is made before the tax becomes
delinquent.
K.S.A 79-6a10 states in part that:
“...Any motor carrier shall be entitled
to pay taxes levied pursuant to this act under protest and
in protesting the payment
of such taxes, shall be required, at the time of paying such
taxes, to make and file a written statement with the director
of property valuation clearly stating the grounds on which the
whole or any part of the taxes is protested, and shall further
cite any law, statute or facts on which such motor carrier relies
in protesting the whole or any part of such taxes and:
(A) If the grounds of such protest shall be that any tax levy
or any part thereof is illegal shall further state the exact
portion of the taxes which is being protested: or
(B) If the grounds of such protest shall be that the valuation
or assessment of the property upon which the taxes so protested
are levied is illegal or void, shall further state the amount
of valuation or assessment which the motor carrier admits to
be valid and the exact portion of the taxes which is being protested.
The director of property valuation shall remit all moneys received
under this section to the state treasurer in accordance with
the provisions of K.S.A. 75-4215, and amendments thereto. Upon
receipt of each such remittance, the state treasurer shall deposit
the entire amount in the state treasury. The state treasurer
shall credit that portion which is protested into a separate
impounded fund and that part which is not protested shall be
credited to the state general fund. Every motor carrier protesting
the payment of the tax herein provided for, within 30 days after
filing the protest, shall commence an action for the recovery
thereof in the district court of the county of residence of the
motor carrier, or, if a nonresident, in the district court of
Shawnee county, Kansas, naming the director of property valuation
and the state treasurer as defendants. If any motor carrier protesting
the taxes shall fail to commence an action in some court of competent
jurisdiction for the recovery of the taxes protested within the
time herein prescribed, such protest shall become null and void
and of no effect whatsoever and upon any such failure the director
of accounts and reports shall transfer such protested tax money
from the impounded fund to the state general fund.
No action shall be brought or maintainable in any court for the
recovery of the taxes paid under protest unless the same is commenced
within 30 days after the filing of such protest with the director
of property valuation.”
FOR KANSAS RESIDENTS ONLY
DO I HAVE THE OPTION OF CHOOSING WHETHER I AM ASSESSED BY THE
COUNTY OR BY THE STATE?
No - You do not have the option of choosing whether you will
be assessed by the County or by the State. However, there is
a set of circumstances specified in the law that will allow the
County to assess your equipment if they apply to your operation.
NOTE: As long as you hold a common, contract, or exempt motor carrier authority on January 1 according to the record of the Kansas Corporation Commission you must file a fully completed Schedule One (1) with the State.
The law (K.S.A. 79-6a01) provides for the assessment of motor carrier equipment by the County when the motor vehicles and rolling equipment are used solely or mainly for transportation in a particular community or local area, or for local pickup and delivery. The law also provides for local assessment of passenger automobiles other than those used to transport people or property for hire. For administrative purposes the jurisdictional area for a claim of local use assessment has been restricted to within a twenty-five (25) mile radius of the town or city in or near which they were used or operated.
If you had vehicles on January 1 of the taxing year that were used only in Kansas within a 25 mile radius of your base of business in the previous year, you may wish to request the forms necessary to file a claim of Local-Use Assessment. The necessary forms are available upon request from the Division of Property Valuation, Robert B. Docking State Office Bldg., 915 SW Harrison St., Topeka, Kansas 66612-1585
The following are annual filing requirements of the Division of Property Valuation for those claiming Local-Use Assessment. Under the provisions of K.S.A. 79-6a01, they must be completed each year in which a claim for Local-Use-Assessment is made, even though there has been no change in your equipment, operations, authority or service area.
1. You must complete all schedules contained in the State Motor
Carrier Rendition Packet (Schedules one through five) including
the equipment for which a claim of exemption has been made.
2. You must complete Section A (Affidavit by Kansas Motor Carrier)
and have your County Appraiser complete Section B (Certification
of Assessment by County Official) of form MC-19 (Documentation
of Local Assessment for Kansas Motor Carrier Vehicles).
3. You are responsible to see that both sections of the Documentation
form MC-19 are completed and that it is returned along with the
completed Motor Carrier Rendition Packet to the Kansas Department
of Revenue, Division of Property Valuation, Robert B. Docking
State Office Bldg., 915 SW Harrison St., Topeka, Kansas 66612-1585
no later than March 20 of the taxing year.
WHAT IF AN ASSESSMENT IS MADE BY A KANSAS COUNTY FOR THIS EQUIPMENT?
Being taxed by the State and the County in the same year for
the same equipment means a taxing error has occurred. If you
find yourself in this situation contact the Division of Property
Valuation, Motor Carrier Section and they will assist you in
correcting the error.
DO I GET A COPY OF THE TAX RECEIPT MARKED PAID (K.S.A. 8-1736)?
No, your proof of State assessment is the copy of your rendition
returned to you by the Division's Motor Carrier Section stamped
with the Director of Property Valuation Statement of Assessment.
The rendition forms are returned to you with your original
tax billing in August.
WHAT DO I NEED TO SHOW WHEN
I GO TO MY COUNTY OFFICES TO REGISTER VEHICLES & PURCHASE
TAGS?
Per K.S.A. 8-173 a registrant must either:
1. Show that all personal property taxes due at the time of
registration have been paid, including taxes on vehicles; OR
2. Show evidence that such vehicles were assessed by the state
(assessed by the Division of Property Valuation).
For the average citizen, registering a new vehicle creates no problem since new vehicles are assessed and prorated at the time of registration by the County Appraiser; however, motor carrier law does not provide for the proration of the assessment and because the taxes are returned to the county in a unique manner, this first section of the law cannot be applied to motor carriers.
In order to provide “Evidence that such vehicle was assessed for taxation purposes by a state agency,...”, the motor carrier is to provide the “proof of assessment” described in question 22 (your stamped rendition forms listing your equipment).
For newly acquired vehicles, which are not subject to assessment in the year of acquisition, the Division of Property Valuation has adopted a policy for registration, which is substituted for the proof of assessment. The Declaration of State Assessment form allows the motor carrier to identify vehicles which are subject to assessment but which could not have been listed on the Division's valuation forms as of January 1 and the motor carrier's intent to render the property for state assessment. This provides the County Treasurer with a document, which constitutes “evidence of assessment” for the purpose of registration under K.S.A. 8-173(a2).