Kansas Dept. of Revenue fiasco

[TylerH860]

On May 1st, Kansas switched to a new multi-million dollar system for driver's licensing, tags, and titles, which involved closing down for a week to train employees and implement the new software.

More than a month later, the state is still in gridlock.

Patience wears thin with delays at driver’s license, tag offices | Wichita Eagle

Even with all the kinks mostly worked out, the state is processing at less than 50% efficiency over the old system. Couple that with the backlog of being closed down a week and the numerous software issues, and people are literally waiting all day for something that used to take 15 minutes.

This has effected my business as well. I recently moved locations and sent in an application to the KDR in Mid-April. My lease expired on May 31st, and I still don't have approval to do business at my new location. The application should not take more than 2 minutes to process. All they do is check that I had the zoning approved and I'm up to date with all of my taxes. I tried calling for weeks, but could not get through due to the "extremely large call volume". I couldn't even stay on hold, the computer would disconnect me. Finally, I got through last week, only to be told that my application had not been processed yet, and got transferred to a voice mailbox. That person has not returned my call. The punishment of operating at a location without approval could be revocation of my license, but do they expect me to shut down and wait? The landlord at my old location had already filled the space, so I could not go month to month.

The other issue is with titles. Currently they're letting everyone off with expired temporary and permanent tags because of the fiasco. The problem with that is many of my customers are from out of state. I have one that needs the title processed soon, otherwise they'll have an expired 30 day tag and I cannot issue multiples with this new computer system. I also cannot trust the state to get titles back really ever at this point, so I'm reluctant to sell some vehicles until this gets resolved.

The changeover of software was delayed 6 months because of issues, but they still couldn't work all the kinks out. Who do you blame? The company that developed the software? The State? Its so frustrating that I can't wag my finger at someone.

The business that does all of my title work for me has not been able to process a single title in the last month. Their business with a staff of 4 full time workers has completely shut down.

[Air&Road]

Tyler,

This surprises me not.

For a few years while my industry was on the downward slide, I worked for a small Kansas company owned by one of our former distributors. He is a great guy, but being a very small business, he didn't have endless accounting expertise in his organization.

Although I worked for the Kansas company I lived in Texas. They were taking out state income tax which I didn't think was proper. Working for several California companies previously, they had never held state income tax.

Anyway after the first tax year, I started trying to get it straightened out. It turned into a HUGE fiasco, but I ultimately called enough voice mails in the Kansas government to finally get my money back.

I am not throwing rocks particularly at the Kansas state government because I expect that the vast majority of state and local beauracracies are equally inept.

Thanks for posting the story and best of luck with it.

[spdrun]

Whom to blame? The *****s in the state house, for forcing businesses to get a license in the first place.

[Aquaticedge]

oi vey, that sucks! I hope it works out for ya soon! why the change to a new system though?

[TylerH860]

Originally Posted by spdrun

Whom to blame? The *****s in the state house, for forcing businesses to get a license in the first place.

Licenses:

Kansas Dealer's License
Kansas Sales Tax Retailer License (that new computer system is working perfectly of course )
Federal tax number (of course)
Kansas Department of Revenue registration
Individual car salesman license (each on per salesman)
City of Wichita zoning approval (basically a license allowing me to operate at that location)
City of Wichita second hand dealer's license

When I first started my business I spent about a month and thousands of dollars just to be legal and with all of my licenses. Took 2 trips to the state capital because they wouldn't return phone calls.

[kerry]

How was the software contract awarded and to whom?

[TylerH860]

Originally Posted by Aquaticedge

oi vey, that sucks! I hope it works out for ya soon! why the change to a new system though?

It combines everything. Tags, titles, driver's licensing, sales and property tax, everything. Each used to be on their own system. It was supposed to be faster, but that is obviously not the case.

Basically the state turned all of its operations over to skynet, and the computers are turning against us.

[spdrun]

Originally Posted by TylerH860

Licenses:

Kansas Dealer's License
Kansas Sales Tax Retailer License (that new computer system is working perfectly of course )
Federal tax number (of course)
Kansas Department of Revenue registration
Individual car salesman license (each one per salesman)
City of Wichita zoning approval (basically a license allowing me to operate at that location)
City of Wichita second hand dealer's license .

Exactly: In a sane world, this number would be whittled down to two or three, for the tax licenses only. Anyone should be able to rent a lot in a commercial district and use it to sell cars, provided that they pay sales and income tax.

As I said -- blame the pigf**king politicians in the state capitol for over-regulating you in the first place. And this goes for most states.

[TylerH860]

3M

Should Kansas get refund for tag office computer issues? - KWCH

Glad someone is doing some digging, and scanned in the contract. Methinks they owe us quite a bit of money.

[Aquaticedge]

Originally Posted by TylerH860

It combines everything. Tags, titles, driver's licensing, sales and property tax, everything. Each used to be on their own system. It was supposed to be faster, but that is obviously not the case.

Basically the state turned all of its operations over to skynet, and the computers are turning against us.

Protect Sarah Conner!... What a pain that is :/ the current system here is a two part type, Registration/transfers and Titles. but both programs talk to each other so it's pretty easy to port the info from one to the other etc.. I hope they get this worked out for ya..being in limbo like that stinks

[Carleton Hughes]

I just laugh when these unimaginative gov't wage slaves try to leave their mark by re-inventing the wheel.

[TnBob]

Ive had very good luck in getting thru by using the Governor's Constituent services line in Tennessee. They immediately got thru to the Dept in question after I couldnt for about 8 days.

[HuskyMan]

there have been and will continue to be people who sell their businesses because of this type of insanity. after being subjected to the continued abuse, they get grey hairs and develop health issues due to the stress. and yet, people keep saying, "The System is Working".

is it ever.

[dynalow]

By State & county. Try it.
Total Tax Insights

[panZZer]

Originally Posted by TylerH860

On May 1st, Kansas switched to a new multi-million dollar system for driver's licensing, tags, and titles, which involved closing down for a week to train employees and implement the new software.

More than a month later, the state is still in gridlock.

Patience wears thin with delays at driver’s license, tag offices | Wichita Eagle

Even with all the kinks mostly worked out, the state is processing at less than 50% efficiency over the old system. Couple that with the backlog of being closed down a week and the numerous software issues, and people are literally waiting all day for something that used to take 15 minutes.

This has effected my business as well. I recently moved locations and sent in an application to the KDR in Mid-April. My lease expired on May 31st, and I still don't have approval to do business at my new location. The application should not take more than 2 minutes to process. All they do is check that I had the zoning approved and I'm up to date with all of my taxes. I tried calling for weeks, but could not get through due to the "extremely large call volume". I couldn't even stay on hold, the computer would disconnect me. Finally, I got through last week, only to be told that my application had not been processed yet, and got transferred to a voice mailbox. That person has not returned my call. The punishment of operating at a location without approval could be revocation of my license, but do they expect me to shut down and wait? The landlord at my old location had already filled the space, so I could not go month to month.

The other issue is with titles. Currently they're letting everyone off with expired temporary and permanent tags because of the fiasco. The problem with that is many of my customers are from out of state. I have one that needs the title processed soon, otherwise they'll have an expired 30 day tag and I cannot issue multiples with this new computer system. I also cannot trust the state to get titles back really ever at this point, so I'm reluctant to sell some vehicles until this gets resolved.

The changeover of software was delayed 6 months because of issues, but they still couldn't work all the kinks out. Who do you blame? The company that developed the software? The State? Its so frustrating that I can't wag my finger at someone.

The business that does all of my title work for me has not been able to process a single title in the last month. Their business with a staff of 4 full time workers has completely shut down.

Does Kansas start taxing someone on a car purchase from the time the title sign over was dated or just when the new owner gets around to putting it in his name?
Texas started the predatory taxing a couple yrs ago so I just tell the seller not to fill in the date.