Kansas State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in Kansas, with full citations and the original source on every page.
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Does a parent-teacher organization (PTO) qualify for the Kansas sales and compensating tax exemption for parent-teacher associations/organizations under K.S.A. 79-3606(yy)?
Yes. The parent-teacher organization qualifies for exemption from Kansas retailers' sales and compensating tax under K.S.A. 79-3606(yy), so it may buy tangible personal property and services without p…
Are charges to set up and reconfigure movable office wall panels and furniture into work cubicles subject to Kansas sales tax?
Yes. Charges to set up new movable wall panels and furniture into work cubicles, and to tear down and reconfigure existing ones, are taxable Kansas services. Reinstalling panels is 'installing tangibl…
Does a desktop publishing business qualify for the Kansas integrated plant (manufacturing) exemption on its equipment?
No. A desktop publishing business does not qualify for the integrated plant (manufacturing machinery and equipment) exemption in K.S.A. 79-3606(kk). Like drapery makers, custom tailors, T-shirt printe…
Are subscriber charges for access to a searchable database maintained for internet access subject to Kansas sales or use tax?
No. Charges for access to a database maintained for internet access — letting subscribers search an archive and print out relevant information — are not subject to Kansas sales or use tax. The Kansas …
Is a credit-card surcharge a propane retailer adds to the customer's bill subject to Kansas sales tax, and can the retailer deduct its credit-card fees from gross receipts?
Yes. A 2.09% credit-card surcharge a propane retailer adds to recoup its credit-card service fees is part of the taxable selling price and is subject to the same sales tax as the rest of the bill (sta…
When does Kansas sales tax apply to store items delivered to in-state versus out-of-state buyers?
Kansas sales tax follows where the buyer takes delivery. Under K.A.R. 92-19-29 (and the UCC, K.S.A. 84-2-106 and 84-2-401), tax applies whenever the buyer or the buyer's agent takes possession of the …
Are direct purchases by a public or private nonprofit hospital exempt from Kansas sales tax, and does the exemption extend to a hospital foundation?
Direct purchases by a public or private nonprofit hospital, used exclusively for hospital purposes, are exempt from Kansas sales tax under K.S.A. 79-3606(b) (with an exception when the hospital engage…
Are Guaranteed Auto Protection (GAP) premiums subject to Kansas sales tax?
No. A Guaranteed Auto Protection (GAP) premium is viewed as the sale of insurance in Kansas, so the premium is not subject to Kansas sales tax. The Kansas sales tax is imposed on selling tangible pers…
Are gate receipts charged for admission to a trade show subject to Kansas sales tax?
Yes. Gate receipts charged for admission to a trade show are subject to Kansas sales tax. K.S.A. 79-3603(e) taxes the gross receipts from the sale of admissions to any place providing amusement, enter…
Is the sale of a discount-membership program (discounts at restaurants, stores, theaters, hotels, etc.) subject to Kansas sales or use tax?
No. The sale of a discount-membership program — giving members discounts at restaurants, retail stores, sporting events, movie theaters, hotels, and other providers, plus an 800 line and a members' we…
Can a dealer offset an administrative fee, an extended warranty, and VIN etch/car care against the motor-vehicle trade-in allowance?
It depends on whether the charge is part of the vehicle sale. An administrative fee is part of the gross receipts from the sale of the vehicle, so it can be offset against (reduced by) the trade-in al…
Does the organization qualify as an exempt religious organization under the Kansas Retailers' Sales Tax Act, and what purchases are exempt?
Yes. The Department determined the organization is a religious organization under the Kansas Retailers' Sales Tax Act, so its direct purchases of tangible personal property and services used exclusive…
Does the organization qualify as an exempt religious organization under the Kansas Retailers' Sales Tax Act, and what purchases are exempt?
Yes. The Department determined the organization is a religious organization under the Kansas Retailers' Sales Tax Act, so its direct purchases of tangible personal property and services used exclusive…
Are wheelchairs, scooters, wheelchair lifts, ramps, and handicap-equipped vehicles exempt from Kansas sales tax?
It depends on the item. The Department's opinion is that an electric or manual wheelchair (whether sold or rented), a motorized scooter, and a wheelchair lift that attaches to a vehicle are exempt as …
Are public wholesale water supply districts exempt from Kansas sales tax on their purchases?
Generally yes, with a condition. The Department indicated that a public wholesale water supply district (PWWSD) organized or operating under K.S.A. 19-3545 qualifies for the sales tax exemption on its…
Is a natural gas pipeline company's charge for transporting gas taxable when it is not the supplier of the gas?
It depends on who supplied the gas. When the pipeline company is also the supplier of the natural gas, its charges to transport that gas to the customer are part of the taxable sale of the gas and are…
Could a nonprofit corporation or governmental entity owning a qualified historic structure earn the Kansas historic-preservation tax credit?
Yes. The Kansas historic-preservation credit was available to owners of qualified historic structures, including individuals, nonprofit corporations, and governmental entities, if the other statutory …
Must a church-run ministerial alliance collect sales tax on thrift-shop sales, and are its building materials exempt?
Two answers. First, yes — a religious organization that makes retail sales (here, a thrift shop) must register for, collect, and remit Kansas retailers' sales tax on those sales. Second, materials to …
Are an RV park's charges for overnight slip rentals and utility hook-ups subject to Kansas sales tax?
No. The Department advised that charges for RV slips and hook-ups — the per-night slip rentals with electricity, water, and waste-water dump — are not subject to Kansas sales tax. They are not charges…
Is 'mylar' used and disposed of in molding fiberglass tanks exempt as property consumed in production?
Yes. The Department's opinion is that 'mylar' — placed on the mandrel to keep the fiberglass from sticking, then removed and thrown away once each tank is finished — is consumed in the production of t…
Is the federal excise tax on fuel included in the Kansas sales tax base when it is a separate line on the invoice?
Yes. The federal excise tax on fuel is part of the 'selling price' for Kansas sales tax purposes and is included in the sales tax base — even when it is billed as a separate line item on the invoice. …
Could Kansas historic-preservation tax credits be divided among multiple assignees and transferred more than once?
Yes. Earned or allowed Kansas historic-preservation tax credits could be transferred more than once, subject to the statute. The person earning the credit could assign portions to different people, an…
Are towing charges and sublet auto services like glass and dent work subject to Kansas sales tax?
It depends on the charge. Towing charges are NOT subject to Kansas sales tax if they are separately stated line items on the customer's bill. If towing is not separately stated, it is taxable when rep…
Does a Kansas fulfillment center collect sales tax on books it ships for publishers, or do the publishers?
The publishers, not the fulfillment center. A Kansas fulfillment center that only warehouses and ships books it does not own is not a 'retailer' and does not collect Kansas sales or use tax on those s…
Does a manufacturer's purchase of CAD software used for product engineering and design qualify for the Kansas manufacturing exemption?
Yes, if its primary use is engineering, R&D, or product design. The Department found that a manufacturer's purchase of canned AutoCAD software appears to qualify for the sales tax exemption under K.S.…
Which truck-rental invoice charges were subject to Kansas sales tax and the 3.5% vehicle rental excise tax?
For truck rentals of 28 days or less, Kansas sales tax and the 3.5% vehicle rental excise tax used the same gross-receipts base. Fuel, liability insurance, damage waivers, permits, cleaning, IFTA amou…
How is qualified business facility investment computed for the Kansas High Performance Incentive Program (HPIP) investment tax credit when the tax year and the certification period do not run concurrently?
This Kansas Opinion Letter is a brief transmittal note, not a substantive ruling. In response to a request about computing qualified business facility investment at an existing qualified business faci…
Is a nutritional product sold through a multi-level marketing company subject to Kansas sales tax?
Yes. The Department advised that the sale of the nutritional product is subject to Kansas sales tax. Unlike many other states, Kansas taxes sales of groceries and food, so the product is taxable in Ka…
Are dietary supplements and nutritional products sold through a direct-sales company subject to Kansas sales tax?
Yes. The Department advised that sales of the two dietary supplement / nutritional products are subject to Kansas sales tax. Unlike many other states, Kansas taxes sales of groceries and food, so the …
Are charges for rehabilitative therapy, X-rays, respiratory therapy, and nurse staffing subject to Kansas sales tax?
No. The Department advised that gross receipts from providing rehabilitative therapy, taking X-rays, respiratory therapy, and nurse staffing are not subject to Kansas retailers' sales tax. Kansas impo…
Should the Kansas cigarette tax be included in the base when calculating retailers' sales tax on cigarettes?
Yes. The Department advised that the Kansas cigarette tax should be included in the taxable base when calculating retailers' sales tax on cigarettes. The reason is that the legal incidence of the ciga…
Did the 2002 historic-preservation credit amendments apply to a project begun in 2001 but placed in service during the taxpayer's 2002 tax year?
Yes, on the stated facts. The 2002 amendments applied to tax years beginning after December 31, 2001 and changed the earning event from when project costs were incurred to when the rehabilitation was …
Which of a campground and recreation center's charges — sports, rentals, cabins, tents, RV sites — are subject to Kansas sales tax?
It varies by charge. Miniature golf and roller skating are taxable as participation in sports (K.S.A. 79-3603(m)); racket and basketball rentals are taxable rental charges. Cabin, hotel, and similar r…
Can a nonprofit museum get a project exemption for exhibitry materials, and are audio-visual purchases exempt?
Mostly no, with one exemption. A nonprofit museum or historical society does NOT qualify for a Project Exemption Certificate, so a contractor's materials for a museum exhibitry project are taxable — t…
How did the July 1, 2002 Kansas state sales tax rate increase work, and how are transitional sales reported?
Under 2002 Senate Bill 39, Section 6, the Kansas state sales and use tax rate rose from 4.9% to 5.3% on July 1, 2002, applying to sales subject to tax on and after that date; local rates were unchange…
What penalties and interest applied to late Kansas sand-royalty reports and payments beginning July 1, 2002?
Beginning July 1, 2002, delinquent Kansas sand-royalty payments accrued interest at 0.667% per month and a tax penalty equal to 10% of the royalty due; fraud increased the penalty to 50% of the royalt…
How did 2002 changes affect the Kansas estate tax, and what is the new succession tax?
Two things changed for 2002. First, the Kansas estate tax stays tied to federal law as it existed on December 31, 1997, so the 2001 federal cuts (higher exclusions, phase-out of the state death-tax cr…
Is the labor to install landscaping and build ponds during original construction of a building exempt from Kansas sales tax?
The labor is exempt, but the materials are taxable. The Department advised that labor services for installing landscape materials and constructing ponds are exempt from Kansas sales tax when they are …
Are a business's purchases of bills of lading and packing slips subject to Kansas sales tax?
Yes. The Department advised that a business's purchases of bills of lading and packing slips are subject to Kansas sales tax. Purchases of sales tickets, cash-register receipt paper, invoice forms, bi…
What four changes did 2002 Senate Bill 39 make to Kansas withholding tax?
2002 Senate Bill 39 made four changes to the Kansas Withholding Tax Act, effective June 6, 2002. First, it extended withholding to distributions distributable to nonresident shareholders or partners o…
How does Kansas apply local tax to in-state vehicle sales and long-term leases after July 1, 2002?
Effective July 1, 2002, 2002 House Bill 3032 imposed a local compensating use tax so that buyers of vehicles sold within Kansas pay the higher of the sales tax rate at the seller's location or at the …
How much did the Kansas cigarette tax increase in 2002, and what inventory (floor-stocks) tax applied?
2002 Senate Bill 39 raised the Kansas cigarette tax to $.70 per pack of 20 (or $.875 per pack of 25) effective July 1, 2002, and to $.79 per pack of 20 (or $.99 per pack of 25) in January 2003. Becaus…
What cigarette and tobacco compliance and reporting changes did 2002 legislation impose on Kansas wholesalers?
Under 2002 House Bill 2982, Kansas licensed cigarette wholesalers and tobacco distributors are prohibited from stamping or paying tax on products from manufacturers not in compliance with the Master S…
Is a company's purchase of reports subject to Kansas sales or use tax, or is there an exemption?
No exemption — the purchase is taxable. The Department advised that Kansas sales and use tax law provides no exemption for the sale of the Reports at issue, so the company must pay the appropriate Kan…
Are advertising space and subscriber access fees on an online 'electronic bulletin board' subject to Kansas sales tax?
No, for the online service itself. The Department advised that the sale of advertising space on a nationwide data bank or 'electronic bulletin board' is not subject to Kansas sales or use tax, and nei…
Is a 'core charge' on a replacement part taxable, and is the tax refunded when the customer returns the old part?
Yes, the core charge is taxable — and the tax is refunded on the return. Kansas treats a 'core charge' (an added fee when the customer has no old part to trade in) as part of the selling price, so sal…
Are repair labor and repair parts for manufacturing machinery taxable when the customer and delivery are out of state?
Labor is taxable; the parts are not, on these facts. The manufacturing machinery exemption in K.S.A. 79-3606(kk) applies only to machinery 'used in this state,' so a repair job for a customer located …
What qualifies for Kansas's ingredient-or-component-part sales tax exemption, and when are containers and packaging exempt?
An item qualifies for the ingredient-or-component-part exemption (K.S.A. 79-3606(m)) only if it is (1) necessary and essential to the finished product, (2) used in or on it, (3) becomes a physical par…
When can a venue accept an exemption certificate for tickets, drinks, and desserts bought by hospitals, religious groups, schools, PTAs, or government?
Any direct purchase — including tickets, meals and drinks — by a not-for-profit hospital, religious organization, school or educational institution, or parent-teacher association (in state or out of s…
Are gross receipts from cleaning a customer's equipment (chains) subject to Kansas sales tax?
No. The Department advised that cleaning a customer's chains is not subject to Kansas sales tax. K.S.A. 79-3603(q) taxes repairing, servicing, altering or maintaining tangible personal property, but t…
Are gross receipts from cleaning a customer's pans, frames, and racks subject to Kansas sales tax?
No. The Department advised that cleaning a customer's pans, frames, and racks (soaking, drying, and re-coating them with oil) is not subject to Kansas sales tax. K.S.A. 79-3603(q) taxes repairing, ser…
Are telephone answering services subject to Kansas sales tax?
Yes. The Department advised that telephone answering services are subject to Kansas sales tax. Kansas imposes sales tax on telephone services under K.S.A. 79-3603(b) and specifically on answering serv…
How much did Kansas motor fuel tax rates increase in 2002, and what inventory tax applied?
2002 House Bill 3011 increased all Kansas motor fuel tax rates by $.02 per gallon effective July 1, 2002. The new rates were: gasoline $.23, gasohol $.23, special fuel (diesel) $.25, and L.P. gases $.…
Does a steel-and-pipe retailer's new cutting machine qualify for the Kansas integrated plant (production) exemption?
No. The Department advised that a new cutting machine bought by a steel and pipe retailer/wholesaler does not qualify for the integrated plant (integrated production) exemption at K.S.A. 79-3606(kk), …
Could an HPIP credit passed through from an S corporation offset a shareholder's total Kansas income-tax liability, including tax on other income?
Yes. When an S corporation or other flow-through entity qualified for an HPIP credit, the credit passed to its shareholders, partners, or members. A recipient could apply the credit against total Kans…
How does Kansas sales tax apply to propane sold for residential heating, for commercial use, and to power forklifts?
It depends on the use. Propane sold to heat or light a residence is exempt from Kansas state sales tax but still subject to local sales tax, sourced to the customer's location (K.S.A. 12-191); small 2…
Does being a not-for-profit organization by itself make an organization's purchases exempt from Kansas sales tax?
No. The Department advised that being a not-for-profit organization does not by itself exempt an organization's purchases from Kansas sales tax. Exemptions are narrowly construed, and a group must fit…
Are dietary supplements such as protein drinks subject to Kansas sales tax?
Yes. The Department advised that Kansas sales and use tax law provides no exemption for dietary supplements such as protein drinks, so the seller must collect and remit Kansas sales/use tax on those s…
Is meat bought to be processed and then sold at retail exempt from Kansas sales tax as an ingredient or component part?
Yes. The Department advised that meat purchased to be processed and ultimately sold at retail to consumers is exempt from Kansas sales tax as an ingredient or component part under K.S.A. 79-3606(m). T…
Are garage doors, repair parts, and repair services at a salt-manufacturing plant exempt as integrated production equipment?
No. Garage doors provided access to the manufacturing building but did not receive, move, transform, test, control, package, power, or otherwise perform any function of integrated production equipment…
Browse Kansas rulings by topic
These are official tax letter rulings and advisory opinions issued by Kansas's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.