12-198.   Imposition of city and county and Washburnuniversity compensating use tax upon tangible personal property, vehicles andvessels; rate; continued exemption for provision of certain tangible personalproperty exempt from taxation prior to July 1, 2003; administration andcollection by state; disposition and apportionment of moneys received.(a) A compensating use tax for the privilege of using or storing within a cityor county any tangible personal property or any vehicle which is required to beregistered under the provisions of article 1 of chapter 8 of the KansasStatutes Annotated, and amendments thereto, or any vessel, as defined by K.S.A.82a-802, and amendments thereto, is hereby imposed by every city, county ormunicipal university imposing a retailers' sales tax. The rate of any such taxshall be fixed at the same rate as such city's, county's or university'sretailers' sales tax. Any city, county or municipal university imposing acompensating use tax is prohibited from administering or collecting such taxlocally, but shall utilize the services of the state department of revenue toadminister, enforce and collect such tax. Such tax shall be identical in itsapplication and exemptions therefrom to the Kansas compensating tax, and alllaws and rules and regulations of the state department of revenue relating tothe Kansas compensating tax shall apply to such local compensating use taxinsofar as the same may be made applicable. If any contractor has entered intoa written, binding contract prior to July 1, 2003, for the construction,reconstruction, restoration, replacement, repair, equipment or improvement of abridge or highway, street, road, alley, sewer, sewage system, water line, watersystem or other related improvement, and such contract includes the furnishingto or by the contractor of tangible personal property which is to become partof the completed improvement subject to the tax imposed by this section, andwhich would have been exempt from taxation pursuant to this section prior toits enactment effective on July 1, 2003, such furnishing of tangible personalproperty shall continue to be exempt from taxation pursuant to this section, ifthe contractor gives notice and proof of such contract to the director oftaxation on or before July 10, 2004. Such notice and proof shall be in suchform and of such sufficiency as the director prescribes.

      (b)   The secretary of revenue is authorized to administer, enforce and collecta city's, county's or municipal university's compensating use tax and to adoptsuch rules and regulations necessary for the efficient and effectiveadministration, enforcement and collection thereof. The state director oftaxation shall cause such taxes to be collected within the boundaries of suchtaxing subdivision at the same time and in the same manner provided for thecollection of the state compensating use tax. All moneys collected by thedirector of taxation pursuant to the provisions of this section shall becredited to the city and county compensating use tax fund or to the municipaluniversity compensating use tax fund, which funds are hereby established in thestate treasury. Any refund due on any city's, county's [or] municipaluniversity'scompensating use tax collected pursuant to this section shall be paid out ofthe sales tax refund fund and reimbursement to such fund shall be made by thedirector of taxation from collections of local compensating use tax revenue.All moneys collected pursuant to this section for a city or county shall beremitted at least quarterly by the state treasurer to the treasurer of suchcity, county or university.

      (c)   All revenue received by any county treasurer from a countywidecompensating use tax shall be apportioned among the county and each citylocated in such county in the same manner as provided in K.S.A. 12-192, andamendments thereto, for the apportionment of revenue received from acountywide retailers' sales tax.

      History:   L. 1982, ch. 66, § 1;L. 1987, ch. 65, § 2;L. 1999, ch. 88, § 8;L. 2003, ch. 147, § 3;L. 2004, ch. 173, § 4; May 27.