Kansas gasoline tax increases possible

Americans for Prosperity-Kansas reports on two bills that would increase the cost of gasoline in Kansas:

There are two bills before the Senate Transportation Committee that would increase the cost of gas in Kansas by an estimated 15 to 20 cents per gallon.

SB 515 would decrease the motor fuel tax rates by 5 cents starting Jan. 1, 2013. However, at that same time motor fuels would be subject to sales tax. With this change, it’s estimated the bill would result in a 15 cent per-gallon increase in the cost of gas.

SB 498 would increase motor fuel taxes by 4 cents beginning Jan. 1, 2013 and by an additional 3 cents the following year. Additionally, the bill allows the Director of Taxation to adjust the tax rate based on the percentage change in the average of the consumer price index for the most recent 12-month period.

Here is a SB 515. The fiscal note for this bill indicates that beginning in fiscal year 2011, an additional $300 million in revenue would be collected by the state each year.

Here is SB 498. Its fiscal note indicates that it too will raise $300 million in revenue per year.


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