However, if the sales tax rate is higher at the purchaser’s residence (or place of business if purchasing the vehicle for business use) than at the dealer’s place of business, then the dealer collects the full amount of sales tax in effect at the dealer’s location and the customer pays the difference to the County Treasurer when the vehicle is registered. EXAMPLE: A car is purchased from a dealer located in Shawnee County by a customer from Lawrence. In the case of vehicles, the rate of use tax due on a vehicle purchased outside Kansas is equal to the Kansas retailers’ sales tax rate in effect at the registration address of the vehicle. When the car is subsequently registered in Kansas, the full state and local rate of Kansas tax in effect at the registration address will be due, unless the first actual use test has been met. The rate of Kansas use tax is equal to the rate of tax in effect at the vehicle registration address - in this case the Kansas City, KS sales tax rate.92-20-13, use tax may not be due on an automobile purchased outside of the state of Kansas if: 1) when the motor vehicle was purchased, it was intended for bona fide use outside of the state of Kansas, 2) the first actual use of the automobile was outside of the state of Kansas, and 3) the first actual use of the motor vehicle was substantial and constituted the primary use for which the motor vehicle was purchased. EV availability has increased substantially in the first half of 2023. As the second quarter of 2023 draws to a close, EV inventory across the U.S. Unanimous Written Consent of Directors in place of the First ? The Editors' Choice list is a great place to start your search for that special ride; we think the vehicles listed here will make you smile for many miles and many years to come. In general, use tax is due when an item is shipped from one state into another whereas, sales tax is due when the sale wholly takes place with the geographical boundaries of Kansas.EXAMPLE: XYZ Autos, a new car dealer, purchases several new Fords it intends to enter into long term leases with one of its commercial customers. As the iconic sports car bows out for good, Audi fans are likely trying to get their hands on one of the last examples. Premiums paid to insure motor vehicles and/or drivers are not subject to Kansas sales tax. Since Niki Auto Transport paid is equal to or greater than the Ingalls combined rate of 7.65%, no Kansas compensating use tax is due. Compensating Use Tax is a tax paid on goods and merchandise (including vehicles) purchased in other states and used, consumed or stored in Kansas upon which no sales tax was paid or, another state’s (and local) sales tax was paid at the time of purchase, but the rate was less than the Kansas rate. K.A.R. 92-19-30(l)(2) provides that when a purchaser has paid state and local sales tax to another state at a rate that is less than Kansas state and local use tax rates where the vehicle is registered, the purchaser shall pay Kansas state and local use tax to the county treasurer at a rate that is equal to the difference between the combined state and local tax rates for the Kansas location and the combined state and local tax rates that were used to determine the tax paid to the other state.