Beginning January 1, 2014, Motor Carriers will no longer pay ad-valorem tax (tax based on value), nor personal property tax on Commercial Motor Vehicles (CMV). With the passage of HB2557 during the 2012 legislative session, CMVs will pay a new "Commercial vehicle fee" that will be collected at the time of registration. Intrastate (do not travel outside the state of Kansas) CMVs will receive a new registration plate that will have a screen printed "COMMERCIAL" at the bottom of the plate.
A commercial vehicle is any self-propelled (truck) or towed (trailer) vehicle engaged in the furtherance of commerce that is used to transport property or passengers when the vehicle:
- has a gross vehicle (capacity/rated) weight or gross combination vehicle weight (truck and trailer) of 10,001 pounds or more or,
- is designed or used to transport 15 or more passengers, including the driver or,
- is used to transport hazardous materials in a quantity requiring placarding.
Note: This change does not affect Farm Registration or vehicles of a public utility whose property is assessed by the director of property valuation.
- The owner of livestock or producer of farm products transporting livestock or farm products to market in that owner's motor vehicle, or the motor vehicle of a neighbor on the basis of barter or exchange for service or employment. Also, the transporting of necessary supplies for the use of such owner or producer, in said vehicle or in the motor vehicle of a neighbor on the basis of barter or exchange for service or employment.
Therefore, if a truck is Farm Registered or used exclusively for owner's farm operation and DOES NOT TRAVEL OUT OF KANSAS it is not considered a Commercial vehicle.
- The transportation of children to and from school, or to motor vehicles owned by schools, colleges, and universities, religious or charitable organizations and institutions, or governmental agencies, when used to convey students, inmates, employees, athletic teams, orchestras, bands or other similar activities.
This exception would not apply to Commercial Vehicles hired by one of the entities listed above to transport children other than to or from school. Example: Buses hired to take students on a school trip.
- Motor vehicles owned and operated by the United States, the District of Columbia, any state, any municipality or any other political subdivisions of this state.
- Persons operating motor vehicles which have an ad valorem tax situs in and are registered in the state of Kansas, and used only to transport grain from the producer to an elevator or other place for storage or sale for a distance of not to exceed 50 miles. This can only be the sole use of this vehicle; if they exceed 50 miles or haul other items for hire they must have a USDOT number.
- Any motor vehicle with a normal seating capacity of not more than the driver and 15 passengers while used for vanpooling or otherwise not for profit in transporting persons who, as a joint undertaking, bear or agree to bear all the cost of such operations, or motor vehicles with a normal seating capacity not more than the driver and 15 passengers for not-for-profit transportation by one or more employees to and from the factories, plants, offices, institutions, construction sites or other places of like nature where such persons are employed or accustomed to work.
- The operation of hearses, funeral coaches, funeral cars or ambulances by motor carriers.
- The operation of vehicles used for servicing, repairing or transporting of implements of husbandry, as defined in K.S.A. 8-1427, and amendments thereto, by a person actively engaged in the business of buying, selling or exchanging implements of husbandry, if such operation is within 100 miles of such person's established place of business in this state, unless the implement of husbandry is transported on a CMV.
"Implement of husbandry" is defined as every vehicle designed or adapted and used exclusively for agricultural operations… regardless of ownership.
- Referred to as "Tools of the Trade Exemption":
(A) Motor vehicles with a GVWR of 26,000 lbs. or less, carrying tools, property or material belonging to the owner of the vehicle, and used in repair, building or construction work are excepted and not considered Commercial Vehicles. This does not include vehicles transporting actual building materials or other objects for eventual sale. Vehicles transporting hazardous materials are always considered Commercial, require a placard and must register as such.
(B) Construction materials being transferred to and from an active construction site may be transported in a non-commercial vehicle with a GVWR of under 26,000 lbs. as long as the site is within a 25-mile radius of the motor carrier's principal place of business.
If your vehicle meets the definition of a Commercial motor vehicle you will need to present your current US DOT number at registration time.