Legislative audit finds Kansas revenue department has procedures for vehicle sales taxes but flags county oversight gaps

Macy Smith, an auditor with the Division of Legislative Post Audit, told the Legislature’s Special Committee on Taxation on Oct. 15 that KDOR “generally has procedures in place, but they did have a few areas they needed to strengthen” when it comes to ensuring sales and compensating use taxes on motor-vehicle transactions are remitted to the state.

The audit covered fiscal year 2023 and reviewed KDOR’s training and guidance, and its monitoring and enforcement practices aimed at dealerships and county treasurer offices. Smith said sales and use tax at the state level is 6.5 percent and the audit examined whether KDOR’s procedures help ensure that dealers and counties remit the correct amounts to the state.

The audit found KDOR offers guidance documents, training and staff contacts — and that the agency had improved dealership controls since an earlier 2003 review. It found dealerships cannot renew a dealer license if they are not in good standing, and KDOR performs risk-based audits of dealers. “Dealerships cannot renew their license if they are not in good standing,” Smith said, noting that license renewal…