1. automotive and vehicles
2. boats and watercraft

WATERCRAFT SALES TAX
WATERCRAFT
SALES TAX
AUG. 2013;
NEW
KEYWORDS
Boats
Watercraft
Boat Trailer
STATUTES, (KSA)
12-198
Back
BOATS/WATERCRAFT SUBJECT TO SALES TAX
The retail sale, rental or lease of boats and watercraft (i.e.,
jet skis, etc.) is subject to Kansas Sales and Compensating
Use Tax.
KANSAS
DEALER
RESIDENT
SELLING
TO
OUT-OF-STATE
The sale of a boat or watercraft by a Kansas dealer to a
nonresident of Kansas IS subject to Kansas Sales Tax when
the buyer takes possession of the boat in Kansas.
THERE
IS NO 10-DAY DRIVE-OUT POLICY FOR BOATS AND TAX IS
DUE TO THE DEALERSHIP EVEN IF THEY TAKE THE BOAT OUT OF
KANSAS THE SAME DAY THAT IT IS PURCHASED.
KANSAS RESIDENT
DEALER
BUYING
FROM
OUT-OF-STATE
The purchase of a boat from an Out of State licensed
dealer is subject to both STATE and LOCAL Kansas
Compensating Use Tax, K.S.A. 12-198. The tax situs is the
owner’s residence.
KANSAS RESIDENT BUYING FROM OUT-OF-STATE
RESIDENT OR NON-DEALER BUSINESS
The purchase of a used boat from an individual located
outside of Kansas is qualified for the isolated or occasional
sales tax exemption. However, with the purchase of a boat
and trailer, sales tax is due to the County Treasurer on the
selling price or fair market value of the trailer. A nonrecreational trailer that has a gross weight of less than
2,000 pounds although exempt from title and registration
is still subject to tax*.
* The isolated or occasional sale of any trailer (including
those with a gross weight of 2,000 lbs. or less) is subject
to Kansas sales or use tax, K.S.A. 79-3603(o). Trailers
with a gross weight of 2,000 pounds or less are not
required to be titled or registered. Sales tax due on a
trailer that is not being titled and registered is paid
directly to the Division of Taxation at the Department of
Revenue and not through the local Treasurer’s office.
Subject: Watercraft Sales Tax
Miscellaneous Policy Section
WATERCRAFT
SALES TAX
AUG. 2013;
NEW
PROCEDURE
Back
LAUNCH AND SIGN INTO THE MOVRS SYSTEM
 Click on VRT.
 Click on Title Transactions.
 Click on Title and Registration.
TITLE AND REGISTRATION PREQUALIFIER WINDOW
 Since boats are not issued a certificate of title, Security
Interest/Lienholder, Lessee or Transfer on Death
individuals/businesses are not recorded in this
transaction. Kansas is leveraging the title transaction
in order to collect the sales tax due:
NOTE:
Liens for boats are recorded through the
Secretary of State’s office
Ownership transfer documents for boats
include the boat registration document from
Kansas Wildlife and Parks and a bill of sale
 Enter the Purchase Date.
 Enter the VIN number.
 Enter the Customer ID number (optional here).
 Enter the Dealer Assignment (optional here).
 Click Continue.
SEARCH RESULTS WINDOW
 The VIN will not exist in DMVS as sales tax is only due
on new boats.
 Click Add Vehicle.
ADD VEHICLE WINDOW
GENERAL TAB
 Select Type of Boat.
 Enter VIN.
 Select VIN Origin as Manufacturer Assigned.
 Enter Year.
 Select Make or Click the … search box for make and
then select the make from the Make Search window
MOVRS Policy & Procedures
2
Kansas Division of Vehicles
Subject: Watercraft Sales Tax
Miscellaneous Policy Section
returned.
 Select or Enter the Model.
 Select the Style as UK – Unknown.
 Select the Color.
NOTE: The Certified check box is core functionality in
DMVS and has been determined by Kansas to be
unnecessary for our business process you may
check it if your security level permits or leave it
unchecked.
ATTRIBUTES TAB
 Enter $0.00 as MSRP – This is a “Required” field for
DMVS but Kansas does not need this for a boat by
business process.
 Enter the boat length.
 In the Boat Information section click on the “Assign
Boat Number” button. This assigns a systematically
required internal number for the Vehicle Maintenance
record that will populate into the required Boat
Number field. This number is NOT a boat registration
number. Kanas Department of Wildlife and Parks
issues those.
 Select the Boat type from the dropdown.
 Select the from the dropdown the closest match for
Hull Material.
 From the dropdown select the Propulsion Type.
OWNERSHIP TAB
 Select the Ownership document of MCO from the
dropdown.
 Enter the MCO #.
 Enter the Name, Address Line 1, City, State and ZIP
code for the dealership that sold this boat. (Optionally,
if the dealership frequently does business in Kansas
they may have been added as a Foreign Dealer and
might be found by a Select Foreign Dealer search.
Enter the four digit dealer license number and then
click on the blue link for Select Foreign Dealer to
search.
 Click Save.
MOVRS Policy & Procedures
3
Kansas Division of Vehicles
Subject: Watercraft Sales Tax
Miscellaneous Policy Section
TITLE AND REGISTRATION WINDOW
 System User is returned to the Title and Registration
window.
APPLICATION TAB
 Verify Received Date as the current date unless the
application was submitted earlier.
 Verify the Purchased Date to ensure what was entered
on the Pre-qualifier screen was captured correctly.
 Select the Usage of Title Only.
 Make sure your County appears as the Registration
County or select it now.
VEHICLE STATUS TAB
 You will see an Ownership Transfer Reason drop down.
It should be defaulted to Cancel-Voluntary Transfer.
 If the seller dealer information was not entered on the
pre-qualifier screen, add the selling dealer information
here.
 Click on Add Foreign Dealer to start the Search box for
that dealership by name or dealer number.
 If the dealership does not exist as a customer in DMVS
follow Add Customer procedure.
FEE DETAIL TAB
 This tab displays details of the fee for the transaction.
 Since Kansas does not title boats or register them
through the Division of Vehicle, adjust off the $10.00
title fee on this tab.
 Sales tax will populate here after the taxes tab is
completed.
TAXES TAB
 The Seller and the Buyer names and addresses are
displayed in columns under the sales tax section of the
tab.
 Enter the Gross Purchase Price, any Trade In, and any
Sales Tax paid to the dealer in the Other sections
provided.
 Click Update Tax Rates button.
MOVRS Policy & Procedures
4
Kansas Division of Vehicles
Subject: Watercraft Sales Tax
Miscellaneous Policy Section
 Changes to the Application Tab, the Customer Tab, or
putting the transaction on Hold will all require that the
Update Tax Rate button be clicked again and tax
information verified before the transaction will
complete.
 Verify that the tax rates returned are applicable for the
transaction. If the wrong rate is returned in the Buyer
Information column enter the correct Jurisdiction Code
or use the “City Override” check box and dropdown to
select the correct city or deselect the choosing the
blank row the city returned.
 Click Update Tax Rates button again.
REGISTRATION DETAIL TAB
 Division of Vehicles does not register boats. This tab is
not applicable.
RELATED CUSTOMERS TAB
 The owner information will be displayed.
 If the owner customers were not entered on the prequalifier screen, click the Add button in the Owner row.
Add as many customers as there are purchasers listed
on the MCO/MSO. To remove a customer added in
error by clicking the (X)at the left end of that customer
row.
 If there are multiple purchaser Owners select the
Ownership Status from the dropdown between
customer names.
 Note: Remember that Security
perfected/entered here for boats.
Interests
are
not
 Click the Capture Signature at the bottom of the
screen.
INSURANCE TAB
 This tab is not applicable for a transaction to collect
only watercraft sales tax.
MAILING TAB
 Nothing will be mailed. This tab not applicable for a
watercraft sales tax only transaction.
MOVRS Policy & Procedures
5
Kansas Division of Vehicles
Subject: Watercraft Sales Tax
Miscellaneous Policy Section
CREDITS TAB
 This tab is not applicable for a transaction to collect
watercraft sales tax only.
DOCUMENTS TAB
 Marked as Received the Ownership Document and the
Bill of Sale
 Scan the MCO and the invoice for the boat purchaser
 When Scan Now is selected, check the box beside the
applicable document, click scan and follow the
scanning procedure.
 For a double sided document make sure to initiate the
duplex feature to get both side of the MCO.
EXCEPTION TAB
 This tab is not applicable for a transaction to collect
only watercraft sales tax.
COMPLETE APPLICATION
 Return to the Fee Detail tab – only the sales tax due
and the collection fee for sales tax should show as due.
 Click Validate.
 Click PAY NOW.
 Error Worksheet window will display with a DE-29
Discretionary Edit because the $10.00 title fee had to
be adjusted off. Auto Approve through this DE.
 Process through payment manager.
 Select the payment type from the drop down. If
payment is other than cash enter the data in the other
applicable fields. Click pay and Collect the fees from
the customer.
 Statement – Receipt window opens – print the
statement for the customer then click the red “X” to
close that window.
 Finalize Transactions window is displayed.
 Click Finalize button
 Generate Credentials window opens.
 Click Generate
MOVRS Policy & Procedures
6
Kansas Division of Vehicles
Subject: Watercraft Sales Tax
Miscellaneous Policy Section
 Sales Tax Receipt correspondence document will open
and should be printed for the customer. Click the “X”
in the red box to close that document.
 If Scan Later was chosen earlier, the Imaging Cover
Sheet will execute and should be printed and attached
to the documents still to be scanned. Click the “X” in
the red box to close that document.
 A Title Only Application summary will be displayed as
eligible to print. Since Kansas does not Title boats and
we are just using Title Transaction functionality in
DMVS to collect the sales tax. The Title Only
Application Summary is not applicable for this
transaction and need not be printed for the customer.
The customer will have the Sales Tax Receipt and their
Financial Receipt for this transaction.
APPROVE TITLE APPLICATION
 Since Kansas makes use of the title functionality to
collect watercraft sales tax, it is important not to allow
the title to be printed as Kansas doesn’t title boats.
 In Title Approval it is required that you uncheck the
Print Title check box.
MOVRS Policy & Procedures
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Kansas Division of Vehicles