KS HB2154

Eliminates the 3.5% excise tax on short-term motor vehicle rentals (28 days or less) effective July 1, 2025, replacing it with standard property taxation for rental and leased vehicles owned by car rental companies

Removes rental vehicles from the motor vehicle property tax exemption under K.S.A. 79-5101, subjecting them to regular property tax assessment instead of the current excise tax system

Updates vehicle registration requirements so rental fleet plates are tied to car rental company ownership rather than payment of the excise tax under K.S.A. 79-5117

Amends sales tax exemption language to clarify that motor vehicles owned by car rental companies and used as rental or lease vehicles are exempt from sales tax (since they will now be subject to property tax)

Modifies peer-to-peer vehicle sharing definitions to distinguish rentals from car rental companies rather than referencing the excise tax statute being discontinued