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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What is a Kansas managed audit agreement and what benefit does it give a taxpayer under Senate Bill 226?
Effective July 1, 2000, Sections 1-5 of Senate Bill 226 let the Director of Taxation enter a voluntary 'managed audit agreement' with an eligible sales or use tax taxpayer. Under an audit plan develop…
Can a Missouri county buy tangible property tax-free in Kansas under the exemption for government purchases?
No. The Department ruled that a direct purchase by a Missouri county is not exempt from Kansas sales tax. The K.S.A. 79-3606(b) exemption for direct purchases by political subdivisions applies to poli…
What manufacturing and warehouse machinery and equipment did House Bill 2011 exempt from Kansas sales and use tax starting July 1, 2000?
Effective July 1, 2000, House Bill 2011 broadened the Kansas sales and use tax exemption at K.S.A. 79-3606(kk) by adopting an 'integrated production operation' (integrated-plant) concept. A manufactur…
Is unearned income a tribal member living on the reservation receives from the tribe exempt from Kansas income tax, or does the exemption only cover earned income?
Yes, it is exempt. The Department ruled that unearned income received from a tribal council or tribe by a Native American Indian who resides on his or her own reservation is exempt from Kansas income …
Is a non-profit association automatically exempt from Kansas sales tax on its own purchases of goods and taxable services?
Not on this record. The Department ruled that nothing in the association's documentation established that the non-profit is exempt from Kansas sales tax on its purchases of goods and taxable services.…
Are an excavator's sales of sand, gravel, and rock — and the hauling charges to deliver them to a job site — subject to Kansas sales tax?
Yes to both. The Department ruled that sand, gravel, and rock severed from real property are tangible personal property, so their sale is taxable — and when the seller delivers the materials, the haul…
Is a nonprofit community concert association exempt from Kansas sales tax on its purchases?
No — it must keep paying sales tax on its purchases. The Department reviewed the association's by-laws and found no basis for an exemption, explaining that 'there is no broad-based sales tax exemption…
Is equipment removed from oil and gas leases taxable when sold as salvage in Kansas?
Yes, it is taxable — unless the seller makes such sales no more often than once a year. The Department ruled that all retail sales of tangible personal property are taxable, including items removed fr…
Is the sale of a building that sits on leased land and is taxed as real property a taxable sale of tangible personal property, or a non-taxable sale of real property?
It is a sale of real property, not taxable. The Department ruled that a building permanently affixed to the land — and classified and taxed as real property by the county appraiser — is real property.…
Are Kansas cigarette and tobacco products taxes owed on wholesale sales to retailers or individuals on Indian reservations?
The Department's position is that there is no exemption under Kansas law from cigarette and tobacco products tax for sales to any retailer or individual on an Indian reservation or land, including sal…
Does a retailer have to charge Kansas tax on the shipping and handling it bills to customers?
Yes. The Department ruled that shipping and handling charges are subject to Kansas sales and use tax as a matter of statutory definition. For sales tax, the base is 'gross receipts' / 'selling price,'…
How did Senate Bill 226 change Kansas withholding tax for payments other than wages effective July 1, 2000?
Effective July 1, 2000, Senate Bill 226 brought Kansas withholding into closer conformity with federal law by requiring withholding on 'payments other than wages' made by 'payors' (anyone other than a…
What restrictions and monthly reports apply to Kansas cigarette wholesalers on gray-market and imported cigarettes?
Under K.S.A. 79-3321(u)-(w) it is unlawful to sell or distribute in Kansas cigarettes packaged for foreign or export markets (for example labeled 'For Export Only,' 'U.S. Tax-Exempt,' or 'For Use Outs…
How is Kansas tax applied to items a Kansas contractor buys for use in out-of-state construction projects?
It depends on how and where the items are bought. The Department ruled that items a Kansas contractor buys from an out-of-state vendor for a specific out-of-state job, then ships to its Kansas locatio…
How did House Bill 2013 change Kansas bingo laws and taxes effective July 1, 2000?
Effective July 1, 2000, House Bill 2013 overhauled Kansas bingo regulation and its taxes. The 3% bingo enforcement tax on the sale of bingo (hard) cards was replaced by a $0.002 (2/10 of a cent) per-f…
How is land enrolled in the federal Wetlands Reserve Program valued for Kansas property tax?
For the 2000 valuation year and after, land enrolled in the federal Wetlands Reserve Program (WRP) or emergency Wetlands Reserve Program (EWRP) is classified as native grassland and valued that way un…
Does a 501(c)(3) nonprofit that serves troubled youth qualify for exemption from Kansas sales tax on its purchases?
No. The Department ruled that a 501(c)(3) nonprofit organized to provide alternatives to institutional placement of troubled youth does not qualify for exemption from Kansas sales tax. Reviewing the e…
Does an out-of-state company that sells customizable web-center subscriptions to Kansas customers, with no property or employees in Kansas, have to file Kansas income tax or collect Kansas sales tax?
No, on these facts. The Department ruled that an Arizona-based company selling customizable 'web center' subscriptions, with no real or personal property, inventory, or employees in Kansas, is not req…
Which of the many services and fees a hotel or motel charges its guests are subject to Kansas sales tax, and which are exempt?
It depends on the charge. The Department provided a chart of common hotel and motel charges. Guest room rental (taxable as sales tax plus transient guest tax), food and catering, alcohol, car rental, …
Are semi-trailers sold to farmers and ranchers exempt from Kansas sales tax as farm machinery and equipment?
Yes, if they qualify as farm trailers. The Department ruled that semi-trailers (grain, flatbed, dump, tank, van) are exempt from Kansas sales and compensating tax when they are designed for farm or ra…
Is a separately labeled 'surcharge' for water delivery subject to Kansas sales tax, or does calling it a surcharge keep it out of the tax base?
Yes, it's taxable. The Department ruled that a water-delivery surcharge is subject to Kansas sales or use tax because it is part of the 'selling price' under K.S.A. 79-3602(g), which includes freight …
Do donations tied to a purchase from the donor qualify for the Kansas community service contribution tax credit?
No — those transfers are not qualified contributions. The Department ruled that donations tied to a same-day purchase from the donor are not 'true' donations and do not earn the community service prog…
How is income reported when a community service program tax credit is assigned (sold) to another taxpayer?
Both sides report income, under K.S.A. 79-32,197a. The Department ruled that when a nonprofit (assignor) sells a community service program tax credit, 'the amount received by the assignor' is taxable …
Are waste tire and antifreeze disposal fees charged with a tire sale or radiator service subject to Kansas sales tax, even if billed as a separate line item?
Yes, they're taxable. The Department ruled that waste tire and antifreeze disposal fees charged in connection with a tire sale or a radiator flush are part of the taxable selling price under K.S.A. 79…
When a printer bills a customer for a finished product, must sales tax be charged on the whole invoice — including the design, copywriting, art direction, and printing costs built into the price?
Yes, tax the whole invoice. The Department ruled that the retailer should collect Kansas sales tax on the total invoice amount, including the recovery of design, copywriting, art direction, and printi…
Does a restaurant have to charge Kansas sales tax on meals it sells to a school district, or can it sell them tax-free?
The restaurant can sell tax-free with a certificate. Restaurant meals are normally taxable under K.S.A. 79-3603(d), but a school district's direct purchases are exempt under K.S.A. 79-3606(c). The Dep…
What did the Department provide in response to a request about the sales tax on equipment sales, repairs, and rentals?
This ruling is a transmittal letter. In response to a request about the sales tax treatment of equipment sales, repairs, and rentals, the Department enclosed the requested completed documents along wi…
Should a city franchise fee be included in the Kansas sales tax base on a utility's customer billings?
Generally yes — the franchise fee is part of the sales tax base. The Department ruled that a city franchise fee a utility passes on to customers is normally included in the base on which Kansas sales …
How does Kansas sales tax apply to leasing propane tanks and equipment and to delivering oil and miscellaneous items?
Both are taxable. The Department ruled that renting or leasing propane tanks and equipment is taxable under K.S.A. 79-3603(h), so sales tax applies to the full amount of each lease payment the lessee …
Is a fuel surcharge added to a customer's bill subject to Kansas sales tax?
Yes. The Department ruled that a retailer should collect and remit Kansas sales tax on the total invoice amount, which includes fuel surcharges. A fuel surcharge is part of the 'selling price' / 'gros…
Does Kansas publish a list of businesses that are exempt from sales tax?
There is no such list — Kansas does not publish one. The Department advised that, unlike many other states, Kansas 'does not publish a list of businesses that are allowed to claim resale exemption' be…
Are sales, parts, and repair services for fire extinguishers provided to Kansas churches taxable?
They are exempt. The Department ruled that sales to Kansas churches for use in places like their sanctuaries and administrative facilities are exempt from sales tax — and this covers the fire extingui…
Are concrete cutting and coring labor services on sidewalks, steps, and walls subject to Kansas sales tax?
Yes, generally taxable. The Department ruled that concrete cutting and coring labor services are subject to Kansas sales tax under K.S.A. 79-3603(q), because concrete is tangible personal property tha…
Is a nonprofit senior center exempt from Kansas sales tax, and does it have to collect tax on its fundraising sales?
Not exempt. The Department ruled that a nonprofit senior center does not enjoy an exemption from Kansas sales tax — not every nonprofit does. An exemption for senior centers would require a change to …
Is cable television installation subject to Kansas sales tax when done at a residence versus at a commercial building?
It depends on the location. The Department ruled that cable television installation performed at a residence is exempt from Kansas sales tax under the 1998 residential-services exemption (K.S.A. 79-36…
Are subscriber access fees and advertising space on an online 'electronic bulletin board' subject to Kansas sales tax?
No, those fees are not taxable. The Department ruled that fees subscribers pay to access a nationwide 'electronic bulletin board' — an online data bank of information, articles, and advertising, reach…
How do Kansas religious organizations claim the sales tax exemption on their purchases and construction projects?
This notice explains the K.S.A. 79-3606(aaa) sales tax exemption for religious organizations, combining the 1998 direct-purchase exemption and the 1999 project-exemption and refund provisions (and it …
For a DSL Internet provider, which billing components are taxable in Kansas — Internet access, installation labor, or leased customer equipment?
It splits by component. The Department ruled that Internet access charges are not subject to Kansas sales tax (never enumerated as taxable, and protected by federal law), but the underlying telephone …
Is the sale and delivery of an aircraft in Kansas to a nonresident buyer exempt from Kansas sales tax if the plane is flown out of the state within ten days?
Yes, if two conditions are met. The Department agreed that a simultaneous sale and delivery of an airplane in Kansas is exempt from Kansas retailers' sales tax when every entity in the ownership chain…
For a Kansas STAR bond project, do sales taxes on event tickets sold off-site count toward the bond repayment increment, and does the seller need an on-site office?
Off-site ticket sales still count. For a motorsports facility financed with STAR bonds, the Department ruled that all ticket sales the operator reports as gross receipts and pays sales tax on — whethe…
When is a Kansas sale exempt because the goods are shipped out of state, and what proof of out-of-state delivery does Kansas accept?
It depends on how the goods leave Kansas. When a Kansas seller is obligated to deliver property to a point outside Kansas, or delivers it to an interstate common carrier or the mails for shipment out …
Can a Kansas retailer buy promotional merchandise tax-free for resale, and how is tax handled when the items are given away as premiums or prizes?
Yes, with a resale certificate — and the give-away treatment varies. A Kansas retailer can buy promotional merchandise exempt with a resale exemption certificate, because at purchase it isn't known wh…
Are receipts from coin-operated car washes subject to Kansas sales tax, and how does the operator calculate the tax from the money in the machine?
Yes, they are taxable. The Department ruled that receipts from car washes of all types are subject to Kansas sales tax, including every coin-operated wash whether fully automatic or a manually operate…
How is a water softener sold and installed in a Kansas residence taxed?
Tax the softener, not the residential installation. The Department ruled that when a vendor sells a water softener to a homeowner, it charges sales tax on the full retail selling price of the softener…
Is a country club's capital improvement fee on its members subject to Kansas sales tax?
Yes, based on the facts given — the capital improvement fee is taxable dues. The Department ruled that under K.A.R. 92-19-73, which taxes dues charged for the use of club facilities for recreation and…
Which sports-field maintenance services are taxable in Kansas and which are exempt?
It depends on the service. The Department listed each sports-field service and its status: aerating, edging/trimming, mowing, dethatching, rototilling, and general field clean-up are exempt (untaxed m…
Does use by youth organizations qualify a camp for the K.S.A. 79-3606(ii) exemption, and must the camp charge tax on facility use?
The camp does not qualify for the exemption and must charge tax on its facility fees to non-exempt users. The Department ruled that although many organizations using Camp ABC are nonprofit sponsors of…
How does Kansas sales tax apply to the equipment, installation, and monitoring sold by a security alarm business?
It depends on how the contract is written. Kansas taxes only the services listed in K.S.A. 79-3603, and security monitoring is not one of them, so the monitoring service itself is not taxable. As a ge…
Are hotel rooms rented for more than 28 consecutive days by a single business exempt from Kansas sales tax?
No. The Department ruled this is not the law: hotel rooms rented for more than 28 consecutive days are not exempt from Kansas sales tax. There used to be such an exemption for long-term rentals, but t…
Does a faith-based 501(c)(3) community development corporation qualify for the Kansas religious-organization sales tax exemption?
No. The Department ruled that a faith-based, 501(c)(3) not-for-profit Community Development Corporation does not qualify for the religious-organization exemption in K.S.A. 79-3606(aaa). That exemption…
Must a cable company pay sales tax on converters it buys to provide its cable service?
Yes — the cable company must pay sales tax when it buys the converters. The Department ruled that the converters are not rented to customers but are provided as part of the company's taxable cable ser…
Does a school fundraising group qualify for the Kansas parent-teacher (PTA/PTO) sales tax exemption, and is it taxed on golf, home-tour, and raffle fundraisers?
On the information given, no exemption — so the fundraisers are taxable. A new nonprofit that raises money for a high school sought the K.S.A. 79-3606(yy) parent-teacher (PTA/PTO) exemption. The Depar…
Are residential service/maintenance contracts covering appliance, HVAC, plumbing, and electrical repairs exempt from Kansas sales tax?
Yes for the labor, but not the materials. The Department ruled that service/maintenance contracts sold to homeowners to repair appliances, HVAC, plumbing, and electrical wiring in their primary reside…
Does an out-of-state manufacturer that ships to Kansas customers only by common carrier, with no Kansas employees or property, have nexus to collect Kansas tax?
No. The Department ruled that a Texas candle manufacturer that sells to wholesalers and ships to Kansas customers only by common carrier (UPS or mail) — with no Kansas employees, no agents traveling i…
Does a qualifying parent-teacher organization (PTO) get the Kansas sales and compensating tax exemption, and how does it differ from a booster club?
Yes — this organization qualifies. The Department recognized the requesting group as a parent-teacher organization (PTO) exempt from Kansas retailers' sales and compensating tax under K.S.A. 79-3606(y…
Is a nonprofit youth-development organization exempt from Kansas sales tax on its purchases and sales of tangible personal property?
Largely yes, for goods. The Department ruled that a qualifying nonprofit youth-development organization (here, a scouting 'Pack') may buy tangible personal property for its own use or resale without p…
Is the service of removing scale, coke, slag, and similar deposits from flowlines, pipelines, and refineries subject to Kansas sales tax?
Yes, it is taxable. The Department ruled that the service of removing coke, iron, sulphides, scale, brine, inferior welds, and slag from flowlines, pipelines, and refineries is subject to Kansas sales…
How did 1999 Senate Bill 11 change Kansas's property tax clerical-error and grievance statutes?
1999 Senate Bill 11 (1999 Kansas Session Laws, chapter 123) amended Kansas's property tax clerical-error statutes — K.S.A. 79-1701, 79-1701a, and 79-1702 — to reinforce that clerical errors are minist…
Are mineral oil purchases used in the grain handling business exempt from Kansas sales tax as property consumed in production?
Yes. The Department ruled that mineral oil purchases fall within the K.S.A. 79-3606(n) exemption for tangible personal property consumed in the production, manufacture, processing, or compounding of t…
For a historic-theater sales tax increment, does retail space in adjacent property count, and do a tenant's off-site ticket sales count?
Two answers. For the historic-theater sales tax increment under K.S.A. 12-1770 et seq. (1999 Senate Bill 76), retail space in adjacent/ancillary property counts only if that building was originally pa…
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.