Frequently Asked Questions About Motor Fuel
- General Information
- Motor Fuel Tax
- Motor Fuel Refund
- Motor Fuel Retailer
- International Fuel Tax Agreement (IFTA)
- Liquid Fuel Carrier License
- Liquefied Petroleum
What type of trip permits are available in Kansas?
- IFTA/Interstate - $13 for a 24-hour motor fuel permit and $25 for a 72-hour motor fuel permit. Motor fuel permits may be purchased in multiples of three upon making proper application and payment of the required fees. The permits can be obtained at the ports of entry or by calling the Central Permit Office, 785-368-6501.
- LFCL - Licensed liquid fuel carriers can purchase a $5 trip permit for new vehicles or for an extra/substitute vehicle used temporarily or for emergency purposes. A non-licensed carrier may obtain a trip permit for vehicles that enter the state on an occasional trip or are in temporary service.
What are the fees associated with
Motor Fuel licenses?
Distributor, Importer/Exporter, Manufacturer, Retailer and Liquefied Petroleum mileage basis licenses are free; no cost is associated with the application for these licenses. A Liquid Fuel Carrier's license is $10 for each vehicle. Liquefied Petroleum User Dealer licenses are $5. A Liquefied Petroleum Prepaid license is based on the vehicle weight and miles traveled. An IFTA license is $10 for the first truck and $1 for each additional truck.
Am I required to file on the forms
that are issued by the Revenue Department or are computer-generated forms acceptable?
A computer-generated tax return may be used in place of the standard tax return issued by the Revenue Department if the return includes all required information and is in a form that can be processed by the agency. The department must approve all computer-generated tax returns prior to filing. For further information, please call the Motor Fuel Tax Unit, Division of Taxation at 785-368-8222.
Does the state accept copies by fax of returns, applications and bonds?
Fax documents are accepted. The FAX number is 785-296-4993.
What bond value is required for Motor Fuel licenses?
- Distributors require a $1,000 minimum or three months average tax liability which ever is greater
- Importer or Exporters require a $5,000 minimum or three months average tax liability which ever is greater
- Manufacturers require a $5,000 minimum or three months average tax liability which ever is greater
Motor Fuel Tax:
When filing an application (MF-42) for a motor fuel distributor’s license, what additional documents are required?
The completed distributor application (MF-42) must be accompanied by the bond in the statutory required amount and a Financial Statement (MF-43). If the ownership is an LLC the Articles of Organization or Articles of Incorporation must also be included. Also required is a list of owners/officers/managing members (parties responsible for the tax liabilities) and their personal information.
Are cities, townships, counties,
schools and state governments required to pay motor fuel, special
fuel and Liquified Petroleum taxes?
Motor fuel statutes apply to these agencies the same as any individual. There are no exemption provisions for any government agencies other than direct purchases made by the federal government and its agencies.
Are police vehicles required to
pay motor fuel taxes?
Police vehicles are not exempt from motor fuel tax on gasoline and diesel fuels. They are exempt from taxes on liquefied petroleum.
Are fire trucks and ambulances
required to pay motor fuel taxes?
If a fire truck or ambulance is not licensed or does not require a license, dyed diesel fuel may be purchased with no tax. If a fire truck or ambulance is licensed, clear diesel fuel or gasoline must be purchased with the fuel tax included, however a refund of the tax may be obtained.
Is the Army Corp of Engineers exempt from motor fuel taxes?
Yes, they are a federal agency.
Is the state exempt?
The State of Kansas is not exempt from state motor fuel excise tax. See the Internal Revenue Service website for federal motor fuel excise tax exemptions.
Is the American Red Cross exempt from state taxes?
Yes, they are an instrumentality of the federal government.
Are motor fuels subject to sales
If the motor fuel excise tax is applicable, no sales tax is required. Fuel that is not subject to motor fuel excise tax becomes subject to sales tax. However, the fuel purchase may qualify for a sales tax exemption; refer to sales tax laws and regulations regarding exemptions.
Am I required to file a return
if I have no tax liability?
A return must be filed even if there is no tax liability. If no return is filed, it is considered delinquent.
Are operators of gas wells that
yield natural gasoline required to obtain a license?
An operator of a gas well must obtain a manufacturer's license. A manufacturer is defined under K.S.A. 79-3401 as any person who or which produces, refines, prepares, blends, distills, manufactures or compounds motor vehicle fuels or special fuels in the state of Kansas for such person's own use therein, or for sale or delivery therein.
What is the Oil Inspection Fee? (Petroleum Products Inspection Fee)
The Oil Inspection Fee is a fee collected by the Kansas Department of Revenue from the supplier at the terminal or from the first importer of the fuel. You can locate prior rates on the web under Motor Fuel Tax Rates, Historical Petroleum Products Inspection Fee Rates from 1935 to Present. The fee is used for the inspection program overseen by the Department of Agriculture, Division of Weights and Measures.
What is the Environmental Assurance
The Environmental Assurance Fee is a fee collected by the Kansas Department of Revenue from the supplier at the terminal or from the first importer of the fuel. The fee is one cent per gallon. Environmental Assurance Fee effective dates can be found on the web under Fuel Tax Rates, Environmental Assurance Fee, Historical Environmental Assurance Fees. This fee is used for clean-up activities of underground and aboveground storage tank leakage and other fuel spills. The Department of Health and Environment oversees this fund.
How do I know if I must collect
the Oil Inspection Fee or Environmental Assurance Fee?
All position holders/suppliers in a terminal selling fuel over the rack or first importer of fuel into Kansas must pay these fees. Otherwise, these fees should be included in the price of the fuel purchased.
Is kerosene taxable?
Kerosene is not subject to motor fuel tax unless it is blended with another fuel.
What information is required on
a delivery ticket?
A delivery ticket must contain the same information that is on the bill of lading from the terminal. See K.S.A. 79-3415 and 55-511 for more information.
How do I obtain a listing of licensed
distributors, importers and exporters or retailers?
According to Kansas statute 79-3426, any distributor, importer, exporter or retailer that holds a valid license may receive a roster of all names and addresses of persons holding distributor, importer and exporter or retailer licenses. To request a complete list, contact the Motor Fuel Tax Unit, Division of Taxation at 785-368-8222.
Is Racing Fuel subject to Motor
Vehicle Fuel tax when it is used only “off road” on
Racing Fuel would clearly fit within the definition of “special fuels,” set forth at K.S.A. 79-3401(s) and also appears to fit within the definition of “motor vehicle fuels,” set forth at K.S.A. 79-3401(l). Racing Fuel would be subject to the motor vehicle fuel tax imposed under K.S.A. 2000 Supp. 79-3408 et seq., to be paid by the supplier or the distributor.
In accordance with K.A.R. 92-3-20, the end-user or consumer (not the supplier or distributor) of the Racing Fuel may claim a refund from the Department of motor vehicle fuel tax on fuel properly documented and substantiated as consumed in non-highway use.
Taxation of motor fuel sales made in federal areas.
All retailers, and base exchanges and commissaries, must collect Kansas motor vehicle fuel taxes on fuel sales made on Federal areas located within Kansas.
Congress has waived the sovereign immunity of the United States in regard to collection of state motor vehicle fuel taxes on sales made on federal areas. The only exception is fuel sold to the federal government. The law requires the officer in charge of a military base to submit monthly reports showing the amount of taxable motor vehicle fuels sold on base.
Title 4 U.S.C.A., Section 104 states:
(a) All taxes levied by any State, Territory, or the District of Columbia upon, with respect to, or measured by, sales, purchases, storage, or use of gasoline or other motor vehicle fuels may be levied, in the same manner and to the same extent, with respect to such fuels when sold by or through post exchanges, ship stores, ship service stores, commissaries, filling stations, licensed traders, and other similar agencies, located on United States military or other reservations, when such fuels are not for the exclusive use of the United States. Such taxes, so levied, shall be paid to the proper taxing authorities of the State, Territory, or the District of Columbia, within whose borders the reservation affected may be located.
(b) The officer in charge of such reservation shall, on or before the fifteenth day of each month, submit a written statement to the proper taxing authorities of the State, Territory, or the District of Columbia within whose borders the reservation is located, showing the amount of such motor fuel with respect to which taxes are payable under subsection (a) for the preceding month. . . .
Motor Fuel Refund:
If I travel the Kansas Turnpike and pay the toll charges, do I also have to pay motor fuel taxes? Can I obtain a refund of motor fuel taxes paid?
Under present statutory provisions, the turnpike is considered as a part of the Kansas highway system. There is no refund provision on motor fuel taxes paid when such fuels are burned over the Kansas highways and therefore, no refunds can be obtained on motor fuels burned over the Kansas Turnpike.
Can schools get a refund of motor fuel or special fuel taxes paid?
Schools may be eligible for a refund if they meet two criteria. 1) The vehicles must be designed to carry more than ten passengers. 2) The vehicle is used for the purpose of transportation of students or school personnel to or from school or school related activities.
Is fuel used in refrigeration units
exempt from fuel taxes?
If the fuel tank for the unit is separate from the fuel tank that powers the motor vehicle, dyed diesel fuel may be used. A refund may be obtained on the tax paid if clear diesel fuel is used.
Is fuel used in oil well drilling
rigs when they are at an oil well site exempt from fuel taxes?
If the rig does not require a license under the vehicle statutes, dyed diesel fuel may be used. If the rig requires a license, a refund of the tax may be obtained only with adequate records to substantiate the claim.
Can I get a refund of motor fuel
excise tax on fuel used in a boat?
A refund may be obtained if fuel is purchased from a registered distributor or retailer in the last 12 months and the claim is for $25 or more.
If motor fuel is burned in motor
vehicles subject to motor fuel tax during highway construction,
reconstruction or repair, is it eligible for a refund of motor fuel
The definition of public highways includes temporarily closed roads for the purpose of construction, reconstruction or repair; therefore, the motor fuel burned in motor vehicles subject to motor fuel tax during this time is not eligible for a refund of motor fuel taxes paid.
If gasoline is used to denature
alcohol, is it eligible for a refund of motor fuel taxes paid?
K.S.A. 79-3453 allows a refund to any person who uses any motor vehicle fuels on which the tax has been paid for any purpose other than operating a motor vehicle on the public highways.
If motor fuel is used in a vehicle
registered for highway use with the Kansas Department of Revenue, but is used for non-highway
purposes only, is it eligible for a refund of motor fuel taxes paid?
K.S.A. 79-3453 provides that a claim for refund may be made for taxes paid on any motor fuel used for any purpose other than operation or propulsion of motor vehicles on the public highways. It is presumed that all fuel in a vehicle registered for use on the highways of the State of Kansas is used for operating or propelling such vehicle on the highways. The Department of Revenue will not trace which fuel was or is used. Therefore, the claimant must clearly and positively show that the fuel in question is used for only non-highway purposes.
Power Take-Off Information:
What is a power take-off?
A power take-off (PTO) generally is a splined shaft on a gearbox, separate from the propulsion or drive shaft that can be used to power attached auxiliary equipment or a separate machine. A power take-off provides a second power output from the engine that is not used to propel the motor vehicle. Auxiliary equipment operated by a motor vehicle's power take-off can be found on boom trucks, bulk-feed trucks, cement mixers, asphalt-distribution trucks, dump trucks, fire trucks, lime spreaders, aerial-lift trucks, milk-tank trucks, mobile cranes, refrigeration trucks, sanitation trucks, spray trucks, and wreckers, among others. Power take-offs are commonly found on farm tractors and on many lawn tractors.
What is not considered to be auxiliary equipment run by a power take-off?
Engine-driven equipment that is used as an integral part of a vehicle's operation, including alternators, generators, air-conditioner compressors, hydraulic pumps for power steering and brakes, fuel-injection pumps, superchargers, and other similar equipment, is not considered to be auxiliary equipment for purposes of calculating power take-off fuel usage.
What is power take-off fuel use?
This is the fuel withdrawn from the propulsion tank of the motor vehicle that is used to operate auxiliary equipment via the power take-off. It is often stated as a percentage of the total amount of fuel that is withdrawn from the propulsion tank.
Should motor fuel tax be refunded for motor fuel consumed in operating an air-conditioner compressor on a motor vehicle?
No. While some states impose motor fuel tax on fuel used to propel motor vehicles on state highways, Kansas imposes the tax on fuel used in motor vehicle operations on state highways. Fuel used to run a compressor that operates as part of an air conditioning or climate control system is fuel used in the motor vehicle's operations on Kansas highways within the meaning of the motor fuel imposition and refund statutes.
The Kansas motor fuel use tax is imposed on "motor fuel used in operations on highways within this state by such interstate motor fuel user." See K.S.A. 79-34,109(a). ;Safe highway operation requires alternators, generators, air-conditioner compressors, hydraulic pumps for power steering and brakes, fuel-injection pumps, and other similar equipment to be operated to defog windows, provide for driver and passenger comfort, allow for reasonable steering effort, provide for lights and braking, clear windshields, provide needed engine power, and so forth. The fuel use attributable to powering this equipment is "motor fuel used in operations on highways within this state" even though the fuel is not used to propel a vehicle down the road. None of the tax paid on fuel consumed to run this equipment is subject to refund as having been purchased for a purpose "other than operating motor vehicles on public highways." See K.S.A. 79-3453; Q & A on Motor Fuel User Idle Time Refunds.
Taxpayers may apply for a refund through the motor fuel refund section if records are included to support the amount of fuel being claimed for a refund.
A legitimate record is determined through a system that measures actual PTO usage including, but not limited to, a test period of operations to calculate the amount of fuel used by the PTO. Flat percentages may be allowed and reported when the adopted system is based on percentages arrived at during the test period. Once a system has been accepted, the carrier may claim credits for PTO usage from that time forward. Credits will not apply to previous periods.
Idle Time Information:
Is an interstate motor fuel user entitled to any refund under K.S.A. 79-3454 for taxes paid on fuel consumed while its vehicles are stopped and idling off-highway in Kansas? Are refunds permitted under K.S.A. 79-3453 when all of the fuel use tax reported under K.S.A. 79-34,109(a) was for fuel "used in [an interstate motor fuel user's] operations … on highways within this state"?
No to both questions. Motor carriers pay fuel tax at the pump (or on the purchase of fuel in bulk), but they also pay fuel use tax to each state based on how much fuel they consume in their travels in the state. This is done through quarterly IFTA tax reports that detail the distance a carrier traveled in a state, the amount of fuel it purchased in the state tax-paid, and the overall miles-per-gallon of its fleet. From this the carrier calculates the fuel it used in the state and takes credit for any state fuel tax it paid on fuel purchases during the quarter. It then pays the state any additional tax owed or receives a credit if tax was overpaid. The fuel use tax is largely a mechanism for redistributing fuel tax to compensate for carriers' differential fueling among states, caused by patterns in freight movement, and for differences in state tax rates.
The amount of tax paid to Kansas on idle time fuel consumed in Kansas while stopped cannot be determined by using the mileage formula in K.S.A. 79-34,109(a) and the details on an IFTA quarterly report alone. This formula does not contemplate making any adjustments to the tax being reported because of idle time fuel consumption.
K.S.A. 79-34,109(a) codifies a mileage formula that determines the taxable "[n]umber of gallons used in the [interstate motor carrier's] operations … on highways within this state." Since the formula is a legal construct that establishes the taxable number of gallons used in a carrier's Kansas highway operations, none of the fuel use tax accounted for by a carrier can qualify for refund as having been paid for some purpose "other than operating motor vehicles on the public highways" under K.S.A. 79-3453.
Discussion: In 1994, Congress enacted legislation mandating that, after Sept. 30, 1996, states may enforce their motor fuel use reporting requirements only if those requirements conform to the International Fuel Tax Agreement [IFTA]. 49 USC Sec. 31705 (2000). The goal of IFTA is the uniform administration of motor fuel tax reporting by motor carriers that operate in the United States and Canada. See IFTA Article I(B). While IFTA's goal is uniform reporting, each member jurisdiction determines the rates, coverage, and exemptions for the tax on motor fuel use by interstate and international motor carriers. See IFTA Article IIIA. Kansas entered into the agreement in 1992.
IFTA's uniform reporting requirements govern the reporting of Kansas motor fuel use by interstate motor carriers that operate in Kansas. See K.S.A. 79-34,165. This fuel use is taxed at K.S.A. 79-34,109(a):
There is hereby imposed on each interstate motor fuel user a tax on motor fuel used in operations on highways within this state by such interstate motor fuel user. . . . The number of gallons of motor fuel used in the operations of any interstate motor fuel user on highways within this state shall be deemed to be such proportion of the total number of gallons of such motor fuel used in its entire operations within and without this state, as the number of miles traveled on highways within this state bears to the total number of miles traveled within and without this state. (Underlining provided.)
This statute codifies a formula that determines the taxable "number of gallons of motor fuel used in the operations of any interstate motor fuel user on highways within this state." Fuel consumed while a vehicle is stopped and idling does not affect the amount of fuel reported under the formula. This is because mileage determines the taxable gallons of fuel use. Mileage does not change when a vehicle is stopped and idling, wherever the idling occurs. Consequently, the taxable fuel use being reported does not change because of fuel consumed while idling.
Under the formula, any allowance for an interstate motor carrier's off highway use in Kansas must be based on the number of miles that the carrier travels off-highway in Kansas. When a carrier determines the ratio of Kansas highway miles to the total miles traveled within and without the state, the off-highway Kansas miles can be included as part of the ratio's denominator to reduce the number of taxable Kansas gallons being reported.
The mileage formula is a legal construct that provides interstate motor carriers with a uniform method for reporting their taxable fuel use. The construct establishes "[t]he number of gallons of motor fuel used in the operations of any interstate motor fuel user on highways within this state." Accordingly, any change to the taxable result must come from changes to the number of Kansas highway miles, the number of total miles, or the number of gallons that are entered in the formula. The formula's result is not changed by the fact that an interstate motor carrier may have consumed fuel while stopped and idling off-highway in Kansas. These gallons are already included in the formula as part of the "total number of gallons of … motor fuel used in [the interstate motor carrier's] entire operations within and without this state."
K.S.A. 79-3453 through K.S.A. 79-3464 deal with motor fuel refunds. K.S.A. 79-3453 extends the refund entitlement:
Any person who uses any motor-vehicle fuels or special fuels on which the motor-fuel or special fuel tax has been paid . . . for any purpose other than operating motor vehicles on the public highways, such person shall be entitled to be refunded the tax paid upon complying with the requirements of this act . . . . (Underlining added). K.S.A. 79-3453.
K.S.A. 79-3454 requires that before a refund claim is made, each person who wants to be eligible for a refund must apply for a refund permit. The applicant is required to list "the uses to which the applicant intends to put such motor-vehicle fuel or special fuel upon which a refund will be claimed." If the fuel use is for farming, manufacturing, or industrial processing, the applicant must support the claim with additional information, such as the number of acres under cultivation, or the nature and kind of the manufacturing or industrial processing. Any incidental highway use of farm equipment and other motor vehicles that are "primarily designed or operated for non-highway use" is not taxed. K.S.A. 79-3463.
K.S.A. 79-3454 shows that taxes paid on fuel used in farming, manufacturing, and industrial processing qualify as having been paid for purposes "other than operating motor vehicles on the public highway." This is not the case with fuel that interstate motor carriers use for their carrier operations. K.S.A. 79-34,109(a) establishes the "[n]umber of gallons used in the [interstate motor carrier's] operations … on highways within this state." Thus, all of the fuel use tax that a carrier reports and pays under K.S.A. 79-34,109(a) is for the carrier's "operations … on highways within this state." None of this fuel use tax is subject to refund as having been paid for some purpose "other than operating motor vehicles on the public highways" under K.S.A. 79-3453.
Idling while stopped occurs both on highway as well as off highway. Idling on a highway occurs at stop lights, at interstate rest stops, at toll booths, while vehicles are stopped in traffic, along the side of the road, and at other similar locations. Idling off highway can occur at a warehouse, motel, restaurant, or similar location. The IFTA reporting formula is based on average miles per gallon, not on how much fuel use tax was remitted to the State of Kansas on fuel consumed during the time spent idling on-highway or off-highway.
Motor Fuel Retailer:
Do I need to apply for a retailer
license if I am a bulk dealer?
A retailer license is not required for a bulk dealer that sells only to retail stations. If a bulk dealer sells to the end user, such as farmers and construction companies, than a retailer license is required.
Do I need to apply for a retailer
license if I am leasing a station?
If the person is only managing the station, a retailer license is not required. If the person owns the station and is only using the name, such as Amoco or Texaco, a retailer license is required in the owner's name.
Do I need to apply for a retailer
license if I only re-sell aviation fuel?
A retailer license is required since you are selling to the end user.
Where do I get my retail dispensing
The following office inspects pumps and investigates consumer complaints. Please contact:
Department of Agriculture
Division of Weights & Measures
Forbes Field, Bldg. 282
Topeka, KS 66619
Where do I get my storage tanks
registered and inspected?
The following office registers and inspects the above and below ground storage tanks. Please contact:
Department of Health & Environment
1000 Jackson St, Ste. 410
Topeka, KS 66612-1367
International Fuel Tax Agreement (IFTA):
What is the purpose of the International Fuel
Tax Agreement (IFTA)?
The purpose of this Agreement is to promote and encourage the fullest and most efficient possible use of the highway system by making uniform the administration of motor fuels use taxation laws with respect to motor vehicles operated in multiple member jurisdictions.
Enable participating jurisdictions to act cooperatively and provide mutual assistance in the administration and collection of motor fuels use taxes.
Establish and maintain the concept of one fuel use license and administering base jurisdiction for each licensee and to provide that a licensee's base jurisdiction will be the administrator of this Agreement and execute all its provisions with respect to such licensee.
What does this mean for me as a carrier?
States collect taxes on the motor fuel used within their borders to build and maintain the roads and highways that link their communities to each other and the rest of the nation. As an interstate motor carrier traveling in Kansas, you pay your share of these taxes according to the provisions of the International Fuel Tax Agreement (IFTA). This agreement, recognized by 58 states and provinces, simplifies the way you report and pay fuel taxes, reduces paperwork and minimizes compliance requirements.
Specifically, Kansas participation in IFTA means that:
- A single fuel tax license authorizes you to travel in all IFTA member jurisdictions;
- A single tax return fulfills your reporting requirements for all member jurisdictions;
- A single state usually performs your fuel tax audit.
The following jurisdictions are current IFTA members:
|Current IFTA Members|
|Alabama||Kansas||New Hampshire||Rhode Island|
|Arizona||Louisiana||New Mexico||South Carolina|
|Arkansas||Maine||New York||South Dakota|
|Indiana||Nevada||Prince Edward Island|
What are the requirements for an International
Fuel Tax Agreement (IFTA)?
Any person based in a member jurisdiction operating a qualified motor vehicle(s) in two or more member jurisdictions.
Qualified Motor Vehicle means a motor vehicle used, designed, or maintained for transportation of persons or property and:
- Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or
- Having three or more axles regardless of weight; or,
- Is used in combination, when the weight of such combination
exceeds 26,000 pounds or 11,797 kilograms gross vehicle or registered
gross vehicle weight.
Qualified Motor Vehicle does not include recreational vehicles.
(Recreational vehicles such as motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure by an individual. In order to qualify as a recreational vehicle, the vehicle shall not be used in connection with any business endeavor.)
What member jurisdiction must I obtain my IFTA
The member jurisdiction where the qualified motor vehicles are based for vehicle registration purposes and
- Where the operational control and operational records of the licensee’s qualified motor vehicles are maintained or can be made available; and
- Where some travel is accrued by qualified motor vehicles within the fleet.
The commissioners of two or more affected jurisdictions may allow a person to consolidate several fleets that would otherwise be based in two or more jurisdictions.
If you have fleets in more than one jurisdiction and want more information on consolidating your fleets under one base jurisdiction call the Kansas Department of Revenue IFTA section.
“Base Jurisdiction,” establishes the jurisdiction to which a carrier will make fuel tax payments. Your base jurisdiction will then distribute the appropriate amount of tax owed to each IFTA member jurisdiction for you.
Kansas will be your base jurisdiction if:
- You have IFTA qualified vehicle(s) registered in Kansas;
- Your vehicle(s) use is controlled from a physical location in Kansas;
- Your vehicle(s) records are maintained or can be made available at a physical location in Kansas; and
- At least one of your vehicles travels some miles within Kansas.
What would be a reason my license would not
A license will not be issued if the applicant has been previously licensed under this Agreement and that license is still under revocation by any member jurisdiction or the application contains any misrepresentation, mistatement, or omission of information required in the application.
If I do not have an IFTA license and have a
qualified motor vehicle traveling through a member jurisdiction
what do I need to do?
In lieu of obtaining an IFTA license, you may satisfy motor fuels use tax obligations on a trip-by-trip basis in each jurisdiction you are traveling in. You can purchase a Trip Permit at any Motor Carrier Inspection Station along the jurisdiction border or through the Central Permit Office 785-271-3145.
Must I reapply each year for an IFTA license?
Yes, you will be mailed a renewal application prior to the expiration of your current credentials.
I currently have an active IFTA license and
I am adding another vehicle to my fleet what can I do?
Kansas will issue a 30-day IFTA temporary permit valid for all member jurisdictions to carry in lieu of displaying the annual decals. A temporary decal permit will only be issued to a licensee in good standing. It will be vehicle specific, and you are only allowed one per vehicle. You will need to make sure you have a copy of your IFTA license in the vehicle along with this temporary decal permit.
You will need to purchase an additional decal before your 30-day temporary permit expires. Additional permits can be ordered at www.Truckingks.org.
Are there any reporting requirements to the
The licensee shall file a calendar quarterly return with the base jurisdiction and shall pay all taxes due and included with the return. Tax returns are required even if no operations were conducted or no taxable fuel was used during the reporting period.
Tax Return, and full payment of taxes, shall be due on the last day of the month following the close of the reporting period for which the return is due. If the last day of the month falls on a Saturday, Sunday, or legal holiday, the next business day shall be considered the final filing date.
What is the date that my IFTA return and payment
must be filed by?
IFTA Return Due Dates
Jan. through March: April 30th
April through June: July 31st
Sept.: Oct. 31st
Oct. through Dec.: Jan. 31st
When is penalty and interest assessed?
Penalty of $50 or 10 percent of delinquent taxes, whichever is greater. Penalty will be assessed when failing to file a return, filing a late return, or underpaying taxes due.
Interest shall be assessed at the rate of one (1) percent per month, on all delinquent taxes due to each jurisdiction.
How are credit balances taken care of?
You may request a refund of your credit balances of $10 or more by checking the box on the front of your IFTA return form 85. If the box is not marked, the credit balance will be applied to your next return. Credit balances cannot be carried for more than eight quarters (two years) from the date established.
What if I do not file my IFTA quarterly report?
Failure to file your quarterly fuel tax report will result in the Revocation of your carrier’s IFTA license. To reinstate the license, a bond must be posted in addition to paying delinquent taxes, penalties, and interest.
What are some of the reasons my license could be revoked?
Your IFTA license may be revoked for any of the following reasons:
- Failure to file a quarterly IFTA report;
- Failure to pay tax due to all member jurisdictions;
- Failure to adhere to record-keeping requirements, and;
- Failure to pay or appeal an audit assessment within the established time period;
- Failure to post a bond when required; and
- Failure to remit payment to cover insufficient funds.
What does it take to get my license reinstated?
To reinstate your IFTA license after being revoked you must:
- Pay all taxes in full;
- File all required reports;
- Submit any records requested;
- File a new application;
- Pay registration fee ($10 for the 1st set of decals and $1 for each additional set); and
- Post a bond to cover 3 quarters tax liability but not less than $1,000.
Is there anything I need to do for IFTA if I
go out of business or no longer leave the State of Kansas?
Yes, you may cancel your IFTA license at any time, provided all reporting requirements and tax liabilities to all member jurisdictions have been satisfied. To surrender your license you need to sign and date the bottom of the license and mark the quarter you want the license surrendered. You must remove the IFTA decals from vehicles, and return the license, all unused decals, and any part of the decals that have been removed from the vehicles to the Kansas Department of Revenue IFTA office. A final audit may be conducted by any member jurisdiction upon cancellation. The records must be retained for four years after the due date of the final quarterly tax report.
If your license was misplaced or destroyed, you will need to submit a statement of what has happened to the license and decals. Include your name and phone number so the IFTA office may contact you if there is any additional information needed.
What if I leave the decals on my vehicle after
my license has been surrendered or revoked?
You will be subject to all appropriate penalties if you are found traveling on a surrendered/revoked license and or decals.
Are there any record keeping requirements with
Yes, every licensee shall maintain detailed records to substantiate information reported on the quarterly tax returns. You must maintain your records for a period of 4 years. For details of record keeping refer to the IFTA Article of Agreement Manual at http://www.ksrevenue.org/forms-mfifta.html.
Are the mileage record keeping requirements
similar for both IFTA and IRP?
Yes, the required elements include:
- START and END date of trip;
- Trip origin and destination;
When a trip includes more than one stop, (multiple destinations) the added stops should also be recorded;
- Route of travel;
- Beginning and ending odometer readings;
Total trip miles - IFTA and IRP require reporting all miles the unit travels;
- Total miles must include loaded and deadhead miles, and any local miles when the unit is taken for servicing.
- Miles in each jurisdiction;
- Unit number or vin;
- Fleet number;
- Registrant’s name.
In addition, IFTA specifies the records MUST include distance data on each vehicle for each trip and be included in monthly fleet summaries.
Regardless of the mileage documentation form used, it must include all of the elements listed above.
What would be considered an acceptable fuel
An acceptable receipt or invoice must include, but shall not be limited to the following:
- Date of purchase;
- Seller’s name and address;
- Number of gallons or liters purchased;
- Fuel type;
- Price per gallon or liter or total amount of sale;
- Unit numbers.
Purchaser’s name (in case of a lessee/lessor agreement, receipts will be accepted in either name, provided a legal connection can be made to the reporting party.)
I have an on board computer system, what are
the record keeping requirements?
See the following information from the IFTA Proceedures Manual.
OPTIONAL USE FOR FUEL TAX REPORTING
On-board recording devices, vehicle tracking systems, or other electronic data recording systems may be used (at the option of the carrier) in lieu of or in addition to handwritten trip reports for tax reporting. Other equipment monitoring devices that transmit data or may be interrogated as to vehicle location or travel may be used to supplement or verify handwritten or electronically-generated trip reports.
Any device or electronic system used in conjunction with a device shall meet the requirements stated in this Section.
On-board recording or vehicle tracking devices may be used in conjunction with manual systems or in conjunction with computer systems.
DEVICES USED WITH MANUAL SYSTEMS
All recording devices must meet the requirements stated in IFTA Procedures Manual Section P640 and P660.
When the device is to be used alone, printed reports must be produced which replace handwritten trip reports. The printed trip reports shall be retained for audit. Vehicle and fleet summaries which show miles and kilometers by jurisdiction must then be prepared manually.
For further detailed requirements please reference the IFTA Procedures Manual located on the IFTA website www.iftach.org
Are you allowed to claim fuel pulled from bulk
Yes, to obtain credit for withdrawals from licensee-owned tax paid bulk storage, the following records must be maintained.
- Date of withdrawal;
- Number of gallons or liters;
- Fuel type;
- Unit number;
- Purchase and inventory records to substantiate that tax were paid on all bulk purchases.
Can I expect to be audited?
Yes, all IFTA carriers based in Kansas are subject to audit. Kansas is required to audit 3 percent of their base jurisdictions licensee’s every year.
Licensees selected for an audit will be contacted in writing 30 days prior to the audit date. The auditor(s) will notify the licensee of the time period to be audited and the records to be reviewed.
After the audit, the licensee will be advised of the audit findings, including adjustments to fuel tax liabilities for affected jurisdictions, and suggestions for record-keeping improvements. The other member jurisdictions affected will be notified of the results. The licensee may be subject to a supplemental audit if any member jurisdiction disagrees with the audit results.
Do I have any appeal rights for my audit?
Yes, if you do not agree with your audit findings you may request an informal conference from the Secretary of Revenue. To request an informal conference, please send a written request, stating the reasons for your objections along with a copy of the audit notice. In order to preserve your appeal rights you must request a conference within 30 days of the date of the letter. Send your request to: Office of administrative Appeals, Kansas Department of Revenue 915 SW Harrison ST., Topeka KS 66625-0001.
Once we review your request, we will contact you to schedule the informal conference. If possible, the conference will be held over the telephone to save you time and travel expense.
Liquid Fuel Carrier License
If a carrier is hauling pure alcohol, are they required to be a licensed liquid fuel carrier?
K.S.A. 55-507 states that no person shall transport any liquid fuels without having first a valid liquid fuel carrier's license. Pure alcohol meets the definition of a liquid fuel.
Who is required to have a Liquid Fuel Carrier License?
You will need a Liquid Fuel Carrier License if you wish to:
- Transport motor fuel, including aviation fuel, within the state of Kansas in quantities of 3,500 gallons or more;
- Transport across the state line in quantities of 120 gallons or more; or
- Pick up fuel from the refinery, pipeline, or place of manufacture, regardless of quantity.
What if I need a Liquid Fuel Carrier License permit for a one-time trip?
Licensed liquid fuel carriers can purchase a $5 trip permit for new vehicles, substitute vehicles used temporarily, or emergency purposes. A non-licensed carrier may obtain a trip permit for vehicles entering the state on an occasional trip or vehicles in temporary service. Trip permits can be obtained by calling the Kansas Department of Revenue at 785-368-6501.
Liquefied Petroleum (LP)
Where do I find the "liquefied petroleum motor fuel tax law"?
You will find the "liquefied petroleum motor fuel tax law" under K.S.A. 79-3490 through K.S.A. 79-34,107, K.S.A. 79-34,141 and K.S.A. 79-34,142 on the Kansas Department of Revenue website at www.ksrevenue.org/mflawsandregs.html#5.
Who is required to have a Liquefied Petroleum
If you are an LP-gas dealer that is placing LP-gas in the fuel supply tank of a motor vehicle and/or your LP-gas delivery truck(s) run on LP-gas pulled from the cargo tank, you are required to have an LP-gas User-Dealer license as found in K.S.A. 79-3495.
If you own a vehicle licensed to be operated upon Kansas public highways and roads that burns LP-gas you may also apply for an LP-gas User-Dealer license, however you may opt to use the alternative method of calculating and paying the motor fuel tax. This option does not require a license but does require the vehicle to have a Special LP-gas permit user’s decal as found in K.S.A. 79-3492b.
What's the difference between Mileage Basis and Special LP-gas decals?
Mileage Basis decals, are issued to licensed LP-gas users or dealers who consume LP-gas withdrawn from the cargo tank to power the truck they are delivering LP from while upon the public highways of the state or an individual that opts to pay the fuel tax monthly on the mileage traveled.
Special LP-gas permits also known as Pre-Paid Permits, are for those who own a vehicle powered by LP-gas and prepay the LP-gas tax annually, based on the miles operated and the weight class of the vehicle as found in K.S.A. 79-3492b. They only report miles actually traveled in Kansas. If a vehicle does not have an odometer, it can not be registered under the Special LP-gas permit
Do the Liquefied Petroleum decals need to be renewed?
Yes, renewals are mailed in November each year. The customer must provide all vehicle information; decals are issued and need to be placed on the vehicle no later than Feb 28.
What bond value is required for Liquefied Petroleum gas licenses?
The LP-gas User-Dealer license requires an application fee of $5.00 and a bond in the amount of 3 months tax liability but not less than $1,000.00.
Special LP-gas permits do not require a license fee or bond.
What are the filing requirements for Liquefied Petroleum gas?
LP-gas User-Dealer (Mileage Basis) must file a Liquefied Petroleum Motor Fuel Tax Return (MF-202) monthly, which is due on the 25th of the following month that the fuel was used or sold.
Special LP-gas permits (Pre-paid) are filed annually when the decal is applied for or renewed (MF-10).
What is the tax rate for Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG)?
The CNG and LNG tax rates were changed during the 2014 Legislative Session. Previously all LP-gas was taxed at the rate of $0.23 per gallon. As of July 1, 2014 the CNG tax rate is $0.24 per gasoline gallon equivalent (GGE) and the LNG tax rate is $0.26 per diesel gallon equivalent (DGE). The Propane (LPG) tax rate is unchanged at $0.23 per gallon.
Is there a conversion formula for CNG and LNG?
Yes, during the 2014 Legislative Session House Bill 2057 was passed changing the conversion formula of Compressed Natural Gas (CNG) from 120 cubic feet to 126.67 cubic feet or 5.66 pounds of compressed natural gas to equal one gasoline gallon equivalent. It also added a conversion formula for Liquefied Natural Gas (LNG) of 6.06 pounds to equal one diesel gallon.
If I own a vehicle that operates on CNG or LNG and is registered with either a Mileage basis or Special Pre-paid decal and I purchase fuel at an unmanned station and am charged the motor fuel tax, how do I receive credit for the tax paid on the purchase?
If you have a Special Pre-paid decal that is renewed annually and you have paid tax at the time of purchase at an unmanned station, you will need to maintain records of those purchases. At the time of renewal you will take credit for tax paid at time of purchase and include copies of receipts showing Kansas motor fuel tax charged.
Mileage basis customers will need to take a credit for tax paid for those purchases at an unmanned station, on the monthly LP-gas return (MF-202). To claim the credit, copies of receipts showing Kansas motor fuel tax charged, need to be included with the return at time of filing.
If I have a retail station(s) that dispenses LP-gas and it is placed in the fuel supply tank of a motor vehicle, do I need an LP-gas Dealer license?
Yes, you would be required to have an LP-gas User-Dealers license and collect the LP-gas motor fuel tax for fuel placed in the fuel supply tank of a motor vehicle that does not have a either a Mileage Basis or Special LP-gas permit decal affixed to the windshield.
If I have a retail station for LP-gas and I only fill tanks for gas grills, do I need an LP-gas Dealer license?
No, LP-gas is not a motor fuel taxable product until it is put into a supply tank of a motor vehicle.
Is equipment I use such as fork lifts or tractors that are fueled by LP-gas considered a motor vehicle and subject to the liquefied petroleum motor fuel tax?
No, equipment such as forklifts and tractors are not considered a motor vehicle. They do not operate on the highways and are not required to be tagged or registered as a motor vehicle so they are not subject to the liquefied petroleum motor fuel tax.
If all the LP-gas I sell is for home heating or agricultural use and none of it is placed into the fuel supply tank of a motor vehicle and none of my delivery vehicles run off LP-gas do I need an LP-gas User-Dealer license?
No, a Kansas Department of Revenue Motor Fuel LP-gas User-Dealer license is not required.