A bill in the Kansas House has died that sought to create a “border tax zone” where the state’s per-gallon fuel taxes would have been
reduced to make prices more competitive with those in neighboring states.
The measure remained in the House Transportation Committee
at the deadline to advance from the chamber to the Senate.
Sponsored by Rep. Gary Hayzlett, R-Lakin, the measure called
for setting up a “competitive border tax zone” within 3,000 feet of a state
line or for any city when its boundaries include a state line.
The bill – H2822 – would have reduced the state’s per gallon
tax on gasoline and diesel to just 1 cent above the price charged in a
neighboring state. The savings could have been as much as 6 cents for gasoline
and 11 cents for diesel.
Kansas now charges 24 cents per gallon for gasoline and 26
cents for diesel. Reducing the price along the state’s borders would have more
closely resembled the per gallon taxes of Colorado, Missouri, Nebraska and Oklahoma.
In Colorado, the per-gallon tax on gasoline is 22 cents and
20.5 cents for diesel. Missouri’s per gallon taxes on gasoline and diesel are
17 cents while Nebraska charges 24.6 cents. In Oklahoma, the per-gallon tax on
gasoline is 17 cents and 14 cents for diesel.
Kansas retailers told the panel prior to the deadline that
the difference puts them at a disadvantage when their businesses are near the