The countdown clock is underway in Kansas for a cost savings that will benefit many truckers.

Signed into law this spring is a rule that will soon repeal the state’s long running motor carrier property tax, or ad valorem. The 56-year-old tax is based on the value of rolling stock and is collected on motor carriers, regardless of baseplate, that use Kansas roads.

Effective Jan. 1, 2014, the state will cease collection of the tax in exchange for an additional registration fee applied to intrastate and interstate operations. Out-of-state truckers will pay the tax through the International Registration Plan.

Until the change is implemented in 17 months the ad valorem tax will continue to be applied for the 2012 and 2013 tax years.

The new commercial vehicle fee will be $400 a year for tractor-trailers in excess of 60,000 pounds and registered through IRP. Trucks registered with this fee will be eligible for apportioned registration.

The change is expected to be a cost savings for truckers and the state.

According to a state analysis, although the new law will result in lost revenue for the state they will save money that typically was needed to keep the program running. Specifically, trucking related functions that are performed by three divisions at the Kansas Department of Revenue will be consolidated.

Advocates said there will be an increase in payments from interstate operations, which would pay the new fee along with the apportioned registration. As a result, they say the change amounts to a wash for the state.

To view other legislative activities of interest for Kansas, click here.

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