Riley County treasurer proposes $5 optional transaction fee under HB 325, estimates $100,000 increase

Riley County Treasurer presented the county’s March financial report and outlined how recently approved House Bill 325 would change vehicle-services fees and revenue timing.

Under the law change described by the treasurer, the county can convert the in-office $2.50 facility fee into an optional transaction fee applied to all motor-vehicle transactions (online, mail and in-person) beginning July 1. The treasurer recommended increasing that optional fee to the statutory $5 maximum for the remainder of 2026 and estimated roughly $100,000 in additional revenue between July 1 and Dec. 31 (based on projected renewal volumes). The treasurer also said the board must notify the Kansas Department of Revenue by April 17 if it wishes to set the fee for July 1 and must decide the 2027 level by Oct. 30.

Treasurer’s staff noted the bill includes a three-year sunset and a legislative task force to review vehicle services and technology modernization; counties will have to report on use of the funds in 2028. Commissioners asked for options for the 2027 budget (including whether to take fees higher than $5, which would require board action per statute for amounts above $5) and discussed the uneven impact across counties depending on transaction volume.

No formal ordinance or resolution was adopted at the meeting; commissioners signaled preliminary support and directed the treasurer to proceed with the administrative steps and to present fee options in upcoming budget hearings.