65-34,117. Environmental assurance fee; disposition of proceeds.
65-34,117
65-34,117. Environmental assurance fee; dispositionof proceeds.(a) There is hereby established on and after July 1, 1992, an environmentalassurance feeof $.01 on each gallon of petroleum product, other thanaviation fuel, manufactured in or importedinto this state. The environmental assurance fee shall be paid by themanufacturer, importer or distributor first selling, offering for sale,using or delivering petroleum products within this state. Theenvironmental assurance fee shall be paid to the department of revenue atthe same time and in the same manner as the inspection fee establishedpursuant to K.S.A. 55-426, and amendments thereto, is paid. The secretary ofrevenue shall remit the environmental assurance fees paidhereunderto the state treasurer in accordance with the provisions ofK.S.A. 75-4215,and amendments thereto. Upon receipt of each such remittance, the statetreasurer shall depositthe entire amount in the state treasury tothe credit of either theaboveground fund or underground fund, as provided by subsection (b).Exchanges ofpetroleum products on a gallon-for-gallon basis within a terminal andpetroleum product which is subsequently exported from this state shall beexempt from this fee.
(b) Moneys collected from the environmental assurancefee imposed by this section shall be credited as follows:
(1) At any time when the unobligated principal balance of the undergroundfund is equal to $2,000,000 or less, the moneys shall be credited to theunderground fund until the unobligated principal balance of underground fundequals or exceeds $5,000,000.
(2) At any time when the unobligated principal balance of the abovegroundfund is equal to $500,000 or less and the moneys are notrequired to becredited totheunderground fund under subsection (b)(1), such moneys shall be credited to theaboveground fund until the unobligated principal balance of theaboveground fund equals or exceeds $1,500,000 or untilsubsection(b)(1) requires moneys to be credited to the underground fund, whichever occursfirst.At any time when theunobligated principal balance of the aboveground fund exceeds $1,500,000, theexcess shall be transferred to the underground fund.
(3) At any time when the moneys cease to be credited to aboveground fundbefore the unobligated principal balance of the aboveground fund equals orexceeds $1,500,000, such moneys shall again be credited tothe abovegroundfund when the unobligated principal balance of the underground fund equals orexceeds $5,000,000. Such moneys shall continue to be credited to theaboveground fund until the unobligated principal balance of the abovegroundfund equals or exceeds $1,500,000 or until subsection (b)(1)requires moneysto be credited to the underground fund, whichever occurs first.
(4) At any time when subsections (b)(1), (b)(2) and (b)(3) do not requiremoneys to be credited to either the underground fund or the aboveground fund,the excess shall be transferred to the Kansas essential fuels supply trustfund. If the unobligated principal balance of the Kansas essential fuels supplytrust fund is equal to $2,000,000 or less, the moneys shall be credited to theKansas essential fuels supply trust fund until the unobligated principalbalance of the Kansas essential fuels supply trust fund equals or exceeds$5,000,000 or until subsections (b)(1), (b)(2) or (b)(3) require money.
(c) At any time when subsections (b)(1), (b)(2), (b)(3)and (b)(4) do not requiremoneysto be credited to either the underground fund or the aboveground fund,no environmental assurance fees shall be leviedunless and until such time as the unobligated principal balance in theundergroundfund is lessthan or equalto $2,000,000 or the unobligated principalbalancein the aboveground fund is less than or equal to $500,000, in which case thecollectionofthe environmental assurance fee will resume within 90 days following theend of the month in which such unobligated balance occurs. If noenvironmental assurance fees are being levied, the director ofaccounts and reports shall notify the secretary of revenue whenever theunobligated principal balance in the underground fund is $2,000,000 or theunobligated principal balance in theaboveground fund is $500,000, and thesecretary of revenueshall then give notice to each person subject to the environmentalassurance fee as to the imposition of the fee and the duration thereof.
The director of accounts and reports shall cause to be published eachmonth, in the second issue of the Kansas register published in such month,the amount of the unobligated principal balances in the undergroundfund and the aboveground fund on thelast day of thepreceding calendar month.
(d) Every manufacturer, importer or distributor of any petroleumproductliable for the payment of environmental assurance fees as provided in thisact, shall report in full and detail before the 25th day of everymonth to the secretary of revenue, on forms prepared and furnished by thesecretary of revenue, and at the time of forwarding such report, shallcompute and pay to the secretary of revenue the amount of fees due on allpetroleum products subject to such fee during the preceding month.
(e) All fees imposed under the provisions of this section andnot paid on orbefore the 25th day of the month succeeding the calendar month inwhich such petroleum products were subject to such fee shall be deemeddelinquent and shall bear interest at the rate of 1% per month, or fractionthereof, from such due date until paid. In addition thereto, there ishereby imposed upon all amounts of such fees remaining due and unpaid aftersuch due date a penalty in the amount of 5% thereof. Such penalty shall beadded to and collected as a part of such fees by the secretary of revenue.
(f) The secretary of revenue is hereby authorized to adopt suchrulesand regulations as may be necessary to carry out the responsibilities ofthe secretary of revenue under this section.
History: L. 1989, ch. 186, § 18;L. 1990, ch. 229, § 2;L. 1992, ch. 311, § 13;L. 1996, ch. 61, § 1;L. 2001, ch. 5, § 249;L. 2006, ch. 50, § 6; July 1.