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.
No Kansas rulings match these filters
Try a different search term or clear the filters.
Can High Performance Incentive Program (HPIP) income-tax credits be transferred to a related company?
Yes, if the conditions are met. The Department read the credit-transfer statute, K.S.A. 79-32,156(a) — which lets the investment and job-creation credit under K.S.A. 79-32,153 pass to a related taxpay…
Are a city's building materials to construct an electricity-generation facility taxable, and is the generation machinery exempt?
It splits by what is bought. The Department ruled that machinery and equipment used directly and primarily to generate electricity for resale by a city are exempt under K.S.A. 79-3606(kk), and the lab…
Are wheelchairs, motorized scooters, and vehicle wheelchair lifts exempt from Kansas sales tax, and what about home ramps?
Mostly exempt, except the ramps. The Department ruled that an electric or manual wheelchair (whether sold or rented), a motorized scooter, and a wheelchair lift that attaches to a vehicle all come wit…
How did 2001 House Bill 2011 change the Kansas ethanol producer incentive payments?
2001 House Bill 2011, effective July 1, 2001, revised the Kansas Qualified Agricultural Ethyl Alcohol Producer Fund. Producers already in production before July 1, 2001 receive 5 cents per gallon of a…
Does a church get one tax-free fundraiser a year, and is the charitable portion of a golf-tournament entry fee exempt from sales tax?
Yes to the free event; no charitable offset on the rest. The Department ruled that under K.A.R. 92-19-67 a religious organization is allowed one fund-raising event per year for which no sales tax is d…
Can a community action group buy materials to repair or weatherize low-income housing without paying Kansas sales tax, and is the repair labor taxable?
Yes — the materials are exempt. The Department ruled that under K.S.A. 79-3606(oo), a community action group or agency may buy tangible personal property free of sales tax when it is bought 'for the e…
Is a pipeline company's purchase of a friction-reducing additive it injects into oil moving in its pipeline exempt from Kansas sales tax?
It depends on whether the pipeline movement is interstate or intrastate. The Department ruled that if the additive is used in an interstate pipeline for movement directly and immediately in interstate…
Is a court-ordered sheriff's sale of used manufactured (mobile) homes subject to Kansas sales tax?
No — the sales are exempt, and any tax collected should be refunded. The two homes were bought used, and K.S.A. 79-3606(bb) grants an outright exemption for sales of used mobile or manufactured homes,…
Can a linen and apparel rental/laundry business buy the consumables used to clean the rented items without paying Kansas sales tax?
Yes for the taxable service, no for coin-operated machines. Because renting linens and apparel and providing laundry/dry-cleaning are taxable services on which the business collects sales tax, the con…
What choice did the 2001 Clean Drinking Water Fee give Kansas public water supply systems?
2001 Senate Bill 332 created the Clean Drinking Water Fee and gave each Kansas public water supply system a choice: pay the Fee of $.03 per 1,000 gallons of water sold at retail (and, in exchange, cla…
When are a Kansas spa retailer's sales to out-of-state customers subject to Kansas sales tax, and how are delivery, repairs, and shipping charges taxed?
It turns on where the customer takes delivery. Spas are taxable tangible personal property (not exempt). If the buyer takes delivery in Kansas — including an out-of-state customer who picks the spa up…
Are a collectors' club's membership sales subject to Kansas sales tax, and does the company owe Kansas use tax on the club kits it ships to Kansas members?
The memberships are not taxable, but the club kits are. The Department ruled that the sale of the collectors' club memberships is not subject to Kansas retailers' sales tax, because Kansas taxes membe…
Are a catalog producer's advertising-agency-type services taxable in Kansas, and how are its printing purchases and its customers' locations treated?
The company's services are not taxable, but it owes tax on everything it buys. The Department ruled that a catalog producer operating like an advertising agency has its services treated as advertising…
Are horse and horsemanship training services subject to Kansas sales tax?
No. The Department ruled that horse and horsemanship training services are not subject to Kansas sales tax. Because the provider is furnishing a nontaxable service, it must pay sales tax on all articl…
Are the gross receipts from an internet information service that converts paper documents into an electronic file subject to Kansas sales tax?
No. The Department ruled there is no imposition in the law to tax the described service — an internet business process that converts physical (paper) forms or documents into an electronic file that is…
Does Kansas recognize a single-member limited liability company as a separate legal entity for sales and compensating (use) tax purposes?
Yes. The Department ruled that Kansas recognizes single-member limited liability companies as legal entities for purposes of Kansas sales and compensating taxes. It pointed to the sales-tax definition…
Do repairs to a power plant's electricity-generating engines and an upgrade of its control (SCADA) system qualify for Kansas's manufacturing machinery and equipment exemption?
The production equipment is exempt; the building is not. The Department ruled that because the internal combustion engines are used to generate electricity for resale, the repair service and repair pa…
Can a business that repairs tangible personal property accept a resale exemption certificate on the repair services and parts it sells to other retailers?
Yes. The Department ruled that a business repairing tangible personal property may accept a resale exemption certificate when it sells repair and maintenance services and parts to other retailers. The…
Does a support endowment corporation formed solely to support an exempt community-based mental retardation center share that center's sales-tax exemption?
Yes. The Department ruled that the support corporation (an endowment formed for the sole purpose of supporting an exempt community-based mental retardation center, and controlled by that center throug…
Must the Department offset a tax balance with the taxpayer's interest credit from overpayments as of the date the net tax was determined?
The taxpayer prevailed on the methodology. After an IRS audit of 1989-1994, the taxpayer filed amended Kansas returns showing overpayments in some years and underpayments in others. The Department kep…
Are the gross receipts from a statistical tank-and-line testing service for underground storage tanks subject to Kansas sales tax?
No. The Department ruled there is no imposition in the law to tax the described service — a statistical form of tank and line testing for underground storage tanks, in which the provider takes data, r…
Does Kansas tax the unrelated business taxable income of an ESOP that owns 100% of an S corporation's stock?
Kansas follows the federal treatment, so the ESOP's income is exempt to the same extent it is exempt federally. Under I.R.C. Section 512(e)(3), certain unrelated business taxable income of an employee…
Are stretch-wrapping and shrink-wrapping machines used in a manufacturing plant's production and distribution for resale exempt from Kansas sales tax?
Yes. The Department ruled that the purchase, rental, or lease of stretch-wrapping machines and shrink-wrapping machines used in the direct production and distribution of items intended for resale by a…
Are construction materials and labor for a project on an Indian reservation subject to Kansas sales tax?
The labor is not taxed, but the materials are. The Department ruled that labor services performed on the Indian reservation are not subject to Kansas sales tax. However, the contractor is treated as t…
Does Kansas tax labor and remodeling services, and which construction labor is exempt?
Kansas taxes installation, application, and repair labor, but exempts original construction and residential remodeling labor. Under K.S.A. 79-3603(p), Kansas imposes sales tax on the service of instal…
Are the gross receipts from a custom statistical-modeling information service — delivered as technical specifications or as electronic score output — subject to Kansas sales tax?
No. The Department ruled there is no imposition in the law to tax the described service — a company that builds custom statistical credit, collection, behavior, recovery, and marketing models, deliver…
Is the construction of a livestock lagoon for a dairy farm exempt from Kansas sales tax as farm machinery and equipment?
No — the lagoon construction is not exempt. The Department ruled that a livestock lagoon is an improvement to real property, so it cannot qualify as farm machinery or equipment. Kansas sales tax is im…
Is an outside vendor's service of cleaning (waterblasting) a storage tank at a manufacturing facility subject to Kansas sales tax?
No — tank cleaning is a nontaxable service. The Department ruled that the gross receipts from cleaning storage tanks are exempt from Kansas sales tax. Although K.S.A. 79-3603(q) taxes the service of r…
Is a federal government contractor's training service taxable in Kansas, and how does it buy parts and maintain federal equipment tax-free?
The training is not taxable, and the maintenance goes through a project exemption certificate. The Department ruled there is no imposition in the law to tax the training services the contractor provid…
Is a farm bale-hauling attachment taxable when bought separately versus when mounted on a pickup before delivery, and are its repair parts taxable?
It depends on how it's sold. A pickup that is not used exclusively for farming is taxable when the farmer buys it. A bale-hauling attachment bought as a separate sale is exempt as farm equipment, and …
Can a nonprofit with a federal 501(c)(3) exemption obtain a Kansas sales-tax exemption, and how?
No — a federal 501(c)(3) does not create a Kansas sales-tax exemption. The Department ruled that Kansas law does not contain a sales-tax exemption for the requesting organization. Even though the orga…
Are the gross receipts from an online information service that sells downloadable teaching ideas subject to Kansas sales tax?
No sales tax. The Department ruled that no imposition exists in Kansas law to tax the information service described - selling downloadable teaching ideas (delivered as PDF or PowerPoint files) over th…
Is installing a flag pole at a residence subject to Kansas sales tax, and does the answer change at a commercial building?
Not taxable at a residence. The Department ruled that installing a flag pole - and similar installation services performed at a residence - is exempt from Kansas sales tax under K.S.A. 79-3603(p), whi…
Are pasture cleaning, barn cleaning, excavation, and fence installation performed with a skid-steer subject to Kansas sales tax?
Mostly not taxable. The Department ruled that land clearing/maintaining, barn (or any structure) cleaning, and excavation - digging, drilling, and boring in soil or rock - are not subject to Kansas sa…
Are the services of procuring temporary workers and management services over the internet subject to Kansas sales tax?
Not taxable. The Department ruled that Kansas, unlike a number of other states, does not impose sales tax on the services of temporary-service providers. A company (Temp-X) that procures temporary wor…
How much did Kansas motor fuel tax rates rise on July 1, 2001, and what inventory tax applied?
1999 House Bill 2071 increased all Kansas motor fuel tax rates by $.01 per gallon effective July 1, 2001. The new per-gallon rates were: gasoline $.21, gasohol $.21, special fuel (diesel) $.23, and L.…
Can a telecommunications company claim the manufacturing machinery exemption for equipment used to provide phone service?
No -- the refund denial was sustained. The manufacturing machinery and equipment exemption in K.S.A. 79-3606(kk) requires that the taxpayer process tangible personal property for resale. A telecommuni…
Are the gross receipts from selling market research reports and consulting - delivered in binders with diskettes and maps - subject to Kansas sales tax?
No sales tax. The Department ruled that no imposition exists in Kansas law to tax the information service described - selling market research reports (printed in 3-ring binders with computer diskettes…
When are a contractor's repairs for a school district exempt from Kansas sales tax, and when is a project exemption certificate required?
It depends on whether the work touches real property. The Department ruled that under K.S.A. 79-3606(d), a contractor's purchases of materials to construct, repair, or remodel a building for a school …
Are data processing services subject to Kansas sales tax?
Not taxable. The Department ruled that because Kansas taxes only specifically enumerated services, data processing services are not currently subject to Kansas sales tax. The provider must, however, p…
Are the gross receipts from coin-operated video games located in Kansas subject to sales tax?
Taxable. The Department ruled that gross receipts from coin-operated video games located in Kansas are subject to sales tax under K.S.A. 79-3603(f), which taxes the operation of any coin-operated devi…
Is the service of weighing vehicles on a commercial scale subject to Kansas sales tax?
Not taxable. The Department ruled that the service of weighing vehicles on a commercial scale is not subject to Kansas sales tax. Because it is a nontaxable service, the provider must pay sales tax on…
Is plumbing labor taxable in Kansas, and how are the materials and non-residential jobs treated?
It depends on residence vs. materials. The Department ruled that plumbing labor services are exempt from Kansas sales tax when performed for a residence under K.S.A. 79-3603(p) (including the land imp…
Are retail sales of herbal fiberblend and barley green supplements subject to Kansas sales tax?
Taxable. The Department ruled that herbal fiberblend and barley green supplements are subject to Kansas sales tax. Unlike states that exempt food, Kansas taxes retail sales of food and food products, …
Are a nonprofit museum's renovation purchases (including for its gift shop) exempt from Kansas sales tax, and are visitor donations taxable as admissions?
Exempt. The Department ruled that the nonprofit organization qualifies as a museum under K.S.A. 79-3606(qq), so its direct purchases of tangible personal property and services used to renovate the bui…
How should a corporation document the Kansas sales-tax exception when vehicles or trailers transfer with all of its assets to another corporation?
Complete the Kansas Designated or Generic Exemption Certificate, Form ST-28, and present it to the county treasurer instead of paying sales or use tax when title transfers. The form should cite K.S.A.…
Is cable television installation subject to Kansas sales tax at a residence, and does the answer change at a commercial building?
Not taxable at a residence. The Department ruled that installing cable television at a residence is exempt from Kansas sales tax under K.S.A. 79-3603(p), which exempts services to install or apply tan…
May a seller accept a Missouri exemption certificate for carpet shipped to a Kansas retailer before the carpet is transported to Missouri for installation?
Do not accept the Missouri exemption certificate for a sale shipped to a Kansas retailer. The carpet nevertheless qualified for Kansas's temporary-storage exemption because it entered Kansas only for …
Were repair parts and repair services for exempt Kansas manufacturing machinery taxable after July 1, 2000?
No, for qualifying exempt machinery. Since July 1, 2000, repair parts and repair services for exempt manufacturing machinery and equipment were exempt from Kansas sales tax. Earlier periods differed: …
Which grain-elevator industrial fixtures, support facilities, and foundations are exempt from Kansas sales tax under the integrated-production exemption?
Mostly exempt. The Department ruled that grain-elevator industrial fixtures, support facilities, and special foundations that are necessary for production - dump/boot pits and elevator legs, dryer sla…
What did 2001 Senate Bill 44 change about the Kansas Homestead Property Tax Refund and Certificates of Eligibility?
2001 Senate Bill 44 (Sections 1-3, effective April 12, 2001) made three changes to the Kansas Homestead Property Tax Refund law. It removed outdated eligibility language about certain surviving-spouse…
Are watch and clock repair labor, cleaning, and replacement parts subject to Kansas state and local sales tax?
Yes. The total charge for watch and clock repair services and parts was subject to Kansas state and local sales tax, and watch cleaning counted as taxable maintenance. The 1998 residential repair exem…
Are cartons purchased to distribute a product exempt from Kansas sales tax as ingredient or component parts, or taxable if they are returnable?
Taxable if returnable. The Department ruled that the client must pay Kansas sales tax on its carton purchases. Containers can be exempt ingredient or component parts under K.S.A. 79-3606(m) and K.S.A.…
Are towing, winching, unlocking vehicles, changing tires, and jump starts subject to Kansas sales tax?
Mixed. The Department ruled that towing, winching, unlocking vehicles, and jump-starting them are not specifically enumerated taxable services, so they are not subject to Kansas sales tax (though the …
Is a motor vehicle sold or leased in Kansas to an out-of-state resident subject to Kansas sales tax?
Exempt. The Department ruled that a motor vehicle (or semitrailer, pole trailer, or aircraft) sold or leased and delivered in Kansas to a bona fide resident of another state is not subject to Kansas s…
In a sale-leaseback financing transaction, is the original purchase taxable, and is the leaseback to the lessee taxable?
The financing purchase is untaxed; the leaseback is taxed. The Department ruled that the described sale-leaseback is a financing transaction, so the lessor's original purchase of the steel trash conta…
Do contractors pay Kansas sales or use tax on the materials and supplies they buy for construction and repair work?
Yes - contractors are the taxable consumers. The Department ruled that under K.S.A. 79-3603b(l), Kansas sales tax applies to sales of materials and supplies to contractors, subcontractors, and repairm…
Can a Kansas contractor buy materials tax-free for an out-of-state project under the temporary-storage exemption?
Only if bought out-of-state. The Department ruled that a contractor can claim the temporary-storage exemption under K.S.A. 79-3702(e) for materials used on an out-of-Kansas project only if the items a…
Is a nonprofit genealogical society exempt from Kansas sales tax?
Not exempt. The Department ruled that a nonprofit genealogical society does not have a Kansas sales-tax exemption. Kansas exemptions are granted by specific statute - for example, the 1998 Legislature…
Is providing ergonomic assessment and training, including a written report, subject to Kansas sales tax?
Not taxable. The Department ruled that providing ergonomic assessment and training is not subject to Kansas sales tax, and the written report delivered to clients as part of that nontaxable service is…
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.