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Committee tables bill to move rental vehicle excise tax to property tax
Summary
House Bill 2,154, which would end the excise tax on rental vehicles and subject them instead to property tax, was tabled by the committee after members expressed concern about higher consumer costs and industry impact.
The Committee on Taxation voted to table House Bill 2,154, which would discontinue the excise tax currently imposed on rental vehicles and instead impose property tax on such vehicles beginning July 1, 2025.
Why it matters: Shifting taxation from an excise paid by renters to a property tax on owners could alter rental rates, administrative burdens, and the economics of rental fleets.
Discussion and concerns: Committee members raised concerns that shifting to property tax could substantially raise rental prices or even harm the viability of rental businesses. Representative Corbett said the change "would greatly increase the price for a rental car in the state of Kansas" and worried it "might just shut the business down entirely." Representative Kessler and others said the bill may advantage one company while harming much of the industry.
Committee action: Representative Poehazel moved to table the bill; Representative Kessler seconded. The chair called the vote on the motion to table and announced, "Motion carries." The motion to table is not debatable and leaves the bill in committee; the record shows the committee decided to delay action.
Next steps: Tabling leaves the bill available for future committee consideration but removes it from immediate action at this hearing.
