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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Do individual 4-H programs qualify for a Kansas sales-tax exemption?
Yes. Following Revenue Ruling 19-1998-2, the Department ruled that the exemption in K.S.A. 79-3606(ii) applies to individual 4-H programs authorized by the 4-H Cooperative Extension Service to operate…
Does a volunteer nonprofit water-quality corporation qualify for a Kansas sales-tax exemption on its purchases?
No. The Department ruled that a volunteer, not-for-profit corporation organized to protect a lake's water quality does not qualify for any Kansas sales-tax exemption and must pay sales tax to its vend…
Are internet access charges taxable in Kansas, and how should a phone company bill bundled internet and telephone charges?
Internet access charges are not subject to Kansas sales tax — Kansas never enumerated internet access as taxable, and federal law bars new state taxes on it. But telephone transmission services billed…
Are drain cleaning services subject to Kansas sales tax?
No, the service itself is not taxed. The Department ruled that drain cleaning services 'are not currently subject to sales tax in the state of Kansas,' because Kansas taxes services only when they are…
Are over-the-counter nasal sprays and similar non-prescription drugs subject to Kansas sales tax?
They are taxable. Kansas imposes sales tax on the gross receipts from retail sales of tangible personal property under K.S.A. 79-3603(a), and the Department ruled that Kansas law provides no exemption…
How much credit does Kansas give a resident for income taxes paid to another state?
It is limited to the net tax you actually paid the other state. Kansas allows a resident individual, estate, or trust a credit for income tax paid to another state on income from sources there. In thi…
Should Kansas local sales tax on automobile sales be based on the buyer's residence instead of the dealership's location?
The Department declined to change the rule. A requester, relaying automobile dealers' complaints, urged that local sales tax on car sales be based on the buyer's residence rather than the dealership's…
Is a senior center's fund-raising exempt from Kansas sales tax?
No. The Department advised that a senior center has no Kansas sales tax exemption, so it must collect the appropriate Kansas sales tax on all of its taxable receipts, including fund-raising projects. …
Is machinery and equipment sold or leased to an over-the-air radio or television station exempt from Kansas sales tax?
Exempt. On or after July 1, 1998, all sales and leases of machinery and equipment sold or leased to over-the-air, free-access radio or television stations are exempt from Kansas state and local sales …
Are direct purchases by a nonprofit hospital — including subscriptions and motel rooms — exempt from Kansas sales tax?
Exempt, if bought directly by the hospital and used exclusively for hospital purposes. K.S.A. 79-3606(b) exempts sales of tangible personal property or services — including the renting and leasing of …
Can an out-of-state contractor get a Kansas direct pay permit for its construction contracts, and how is the tax base figured?
No — an out-of-state contractor cannot be granted a direct pay permit, because a direct pay permit may not be used to claim exemption in connection with construction contracts (Notice 98-02). Even a p…
Are purchases made from a state agency's Patient's Benefit, Work Therapy, and Canteen Funds exempt as direct purchases by the state?
Exempt for the state funds, taxable for the employee use fund. The Department concluded that the Patient's Benefit Fund, Work Therapy Fund, and Canteen Fund established under K.S.A. 75-3728e are funds…
Which purchases by a nonprofit youth development program are exempt, and which are taxable as property used for human habitation?
Partly exempt. K.S.A. 79-3606(ii) exempts tangible personal property purchased directly by a nonprofit organization for nonsectarian comprehensive multidiscipline youth development programs, but the e…
Do a radiant heating system and an overhead crane qualify as exempt manufacturing machinery and equipment for a Kansas sales tax refund?
Split answer. The Department reaffirmed that the taxpayer's radiant heating system does not qualify as manufacturing machinery, so no refund is due on it. The overhead crane would likely qualify as ma…
How does a contractor buy materials tax-free for a construction project for a federal entity in Kansas?
Only through a project exemption certificate. Under K.S.A. 79-3606(e), a contractor's purchases of tangible personal property or services for the erection, repair, or enlargement of buildings or other…
Does a company owe Kansas tax on promotional display materials it ships into Kansas at its client's direction?
Taxable. Kansas compensating (use) tax is levied for the privilege of using, storing, or compounding tangible personal property in the state, collected at 4.9% of the consideration paid by the consume…
Does a religious organization qualify for the Kansas sales tax exemption, letting it buy ministry literature tax-free?
Exempt. K.S.A. 79-3606(aaa) exempts all sales of tangible personal property and services purchased by a 501(c)(3) religious organization and used exclusively for religious purposes. The Department fou…
Which parent-teacher organization fundraising sales are exempt in Kansas, and which — like carnival games and bingo — are taxable?
Mixed. K.S.A. 79-3606(yy) exempts sales of tangible personal property and services purchased by a parent-teacher association or organization, and its sales of tangible personal property. So tickets ex…
Is an educational institution that is exempt on its purchases also required to collect Kansas sales tax on its own sales?
Yes — being exempt on purchases does not excuse collecting on sales. Schools and educational institutions are exempt from paying Kansas sales tax on their purchases, and the 1998 legislature broadened…
Which parent-teacher organization fundraiser sales are exempt, and which — like carnival games and pre-sold bingo — are taxable?
Mixed. This ruling (which supersedes a prior December-1998 letter) applies K.S.A. 79-3606(yy), exempting sales of tangible personal property and services purchased by a parent-teacher association or o…
Are sales of custom prosthetic and orthotic devices taxable in Kansas, and must the provider register as a retailer?
The described sales are not taxable, but the provider still must register. A company that provides custom prosthetic and orthotic devices, billed to Medicare, Medicaid, insurance, and patients in conj…
Are computer and internet business-center services provided to hotel guests subject to Kansas sales tax?
The services are not taxable, but the provider's own purchases are. A company planned hotel business centers giving guests 24-hour access to a computer, software, the Internet, e-mail, printing, faxin…
Is labor to maintain and repair a residential swimming pool exempt from Kansas sales tax after the 1998 residential-services exemption?
The labor is exempt; the materials are not. Effective July 1, 1998, 1998 Senate Bill No. 493 exempts services to install or apply tangible personal property when they involve the original construction…
Must a youth baseball organization collect Kansas sales tax on its candy fundraising sales?
Taxable. A youth baseball program's participation fees are exempt as a 501(c)(3) youth recreation organization serving persons 18 or younger, but its retail fundraising sales are not. The Department f…
Are utilities at a home used for a business taxed as residential or commercial in Kansas?
It depends on how the home is used. Kansas imposes state and local sales tax on gas, water, electricity, and heat sold to commercial consumers. Where a home's business use is de minimis or insubstanti…
Why must a school student organization collect Kansas sales tax on its concession-stand sales?
Because the state requires retailers -- including schools, churches, and non-profits -- to collect sales tax on their taxable retail sales, and student concession-stand sales have been taxable in Kans…
When did the Kansas religious-organization exemption take effect, and are a church's utilities exempt?
The exemption began July 1, 1998, with no refund for earlier purchases. 1998 Senate Bill No. 493 added a new sales tax exemption for religious organizations under K.S.A. 79-3606(aaa), effective July 1…
Do nonprofit associations that support member colleges qualify as exempt 'educational institutions' under the 1998 Kansas definition?
Yes, they qualify. K.S.A. 79-3602, as amended by the 1998 Kansas Legislature (L. 1998, ch. 130, sec. 29), defines 'educational institution' to include nonprofit endowment associations and foundations …
Must a church athletic foundation collect Kansas sales tax on sports participation fees paid by its members?
No — the participation fees are exempt, but the foundation's purchases are not. K.S.A. 79-3603(m) taxes fees charged to participate in sports and other recreational activities, but as amended by 1998 …
How can a wholesaler stop being charged Kansas compensating tax on goods it buys and resells to Kansas retailers?
Register and give the vendor a resale exemption certificate. The wholesaler buys refrigerants that its out-of-state vendor (DuPont) ships directly to Kansas retailers and bills to the wholesaler, and …
Does a marriage counseling group qualify for the Kansas religious-organization sales tax exemption?
Not exempt. K.S.A. 79-3606(aaa) exempts purchases by a 501(c)(3) religious organization used exclusively for religious purposes, and defines a 'religious organization' as a group that gathers for wors…
Can a plumbing company cancel its sales tax registration and just pay tax on the materials it buys?
No. The Department advised that the advice to cancel registration and simply pay tax on material and supply purchases was incorrect. A plumbing company typically makes some retail sales and performs l…
Does a 501(c)(3) foundation qualify for a Kansas sales tax exemption because similar named health charities are exempt?
Not exempt. K.S.A. 79-3606(vv) grants a Kansas sales tax exemption to a specific list of named health-related charities, and the general exemptions for schools, educational institutions, hospitals, an…
If a company sells computer training classes whose fee includes manuals participants keep, does it charge sales tax on the manuals?
Don't charge tax on the class fee — but pay tax when you buy the manuals. Kansas does not tax gross receipts from the service of providing training or instruction, so the lump-sum fee for computer tra…
Does a ministry qualify for the 1998 Kansas religious-organization sales tax exemption, and how does it claim it?
Exempt, if claimed properly. The Ministry provided its by-laws and an IRS letter, which established that it qualifies as a religious organization within the meaning of 1998 Senate Bill No. 493. Accord…
Is a city's charge to install a new residential water line, water meter, or electrical meter subject to Kansas sales tax?
The installation service is not taxable; tax is paid on the materials. Kansas exempts labor to install tangible personal property when it involves the original construction of a building, and 'the con…
Must a non-resident professional athlete or entertainer who earns Kansas-source income file a Kansas income tax return?
Yes. The Department advised that non-resident professional athletes and entertainers who receive income from Kansas sources are obligated to file a Kansas individual income tax return, regardless of t…
Are subscription receipts for newspapers, magazines, periodicals, and trade journals mailed to Kansas subscribers subject to Kansas sales tax?
Taxable. When subscriptions for newspapers, magazines, periodicals, trade journals, and publications are taken within Kansas, sent to a printer or publishing house (inside or outside Kansas), and the …
When a hotel charges guests a fee for in-room pay-per-view movies supplied through a video company's equipment, who collects Kansas sales tax and who pays tax on the equipment?
The hotel collects sales tax on the guest movie fee; the video company pays tax on its equipment. The Department ruled the hotel 'should impose and remit Kansas state and local retailers' sales tax on…
Is buying shelving and store fixtures from a business that is closing down subject to Kansas sales tax?
Likely exempt as an isolated or occasional sale — if the facts fit. Kansas exempts 'all isolated or occasional sales of tangible personal property' (K.S.A. 79-3606), meaning a nonrecurring sale by a p…
Which of a farmer's water-well and irrigation purchases are exempt as farm machinery and equipment, and which are taxable?
It depends on the item. Under K.S.A. 79-3606(t), farm machinery and equipment — including irrigation pivot systems, pumps, motors, valves, and the well pump assembly — is exempt when purchased for far…
How is Kansas sales tax calculated on funeral charges, and is the state-paid portion of a burial taxable?
Under K.A.R. 92-19-15, the portion of a burial paid directly by the state of Kansas (or another political subdivision) is not subject to sales tax. For the rest, the taxation depends on how the funera…
How should Kansas county appraisers adjust the agricultural use value of farmland that floods frequently, and under what legal authority?
Agricultural land that floods frequently gets a 20% reduction in its agricultural use value. This 1998 Division of Property Valuation memo tells county appraisers that if flooding has occurred at leas…
Does a nonprofit endowment association qualify as an exempt educational institution in Kansas, and must it still collect sales tax on its own sales?
Exempt on purchases, but it must collect tax on its own sales. The 1998 Legislature broadened 'educational institution' to include nonprofit endowment associations and foundations operating exclusivel…
Does a nonprofit that gives administrative support to a medical school's teaching faculty qualify as an exempt 'educational institution' in Kansas?
Not exempt. The 1998 broadened 'educational institution' definition (1998 Senate Bill 493) reaches groups of schools, endowment associations, athletic-receipt entities, and research foundations organi…
What must an organization show to qualify as an exempt 'religious organization' under Kansas sales tax law, and did this taxpayer qualify?
Not exempt on these facts. K.S.A. 79-3606(aaa) exempts purchases by a 501(c)(3) 'religious organization' used exclusively for religious purposes, but the statute defines that term narrowly: a group th…
Does a group have to collect Kansas sales tax on a food fundraiser it holds on behalf of an exempt youth development organization?
No tax to collect. K.S.A. 79-3606(ii) exempts sales of tangible personal property purchased directly by a nonprofit for nonsectarian comprehensive multidiscipline youth development programs, and 'all …
Are repair and installation labor services taxable in Kansas, including when performed for farmers?
Generally taxable. Under K.S.A. 79-3606(q), the service of repairing, servicing, altering, or maintaining tangible personal property is taxable, so servicing a lawnmower for a farmer or business owner…
Is a nonprofit 501(c)(3) science-education organization exempt from Kansas sales tax on its purchases?
Not exempt. The Department could find no subsection of K.S.A. 79-3606 that exempts the purchases of a nonprofit 501(c)(3) organized to promote science education. Kansas sales tax exemptions are strict…
Is a homeowners association exempt from Kansas sales tax on its purchases?
Not exempt. Although 1998 Senate Bill 493 added sales tax exemptions for certain organizations (such as nonprofit zoos and parent-teacher organizations), the Department advised that 'not every non-pro…
Are oil and grease used in a commercial printer's presses exempt from Kansas sales tax as consumed in production?
Yes. The Department concluded that oil and grease used in a commercial printer's printing presses are exempt from Kansas sales tax as consumed in production. Lubricants used in manufacturing equipment…
Does a prescribed medical device that treats a bodily malfunction qualify for the Kansas sales tax exemption for prosthetic and orthopedic appliances?
Exempt when prescribed. K.S.A. 79-3606(r) exempts sales of prosthetic and orthopedic appliances prescribed in writing by a licensed healing-arts, dentistry, or optometry practitioner, defined to inclu…
Are Habitat for Humanity's materials and construction services for its housing projects exempt, and must it still collect tax on fundraising sales?
Materials and construction labor are exempt; fundraising sales are not. K.S.A. 79-3606(ww) lets Habitat for Humanity buy tangible personal property tax-free when it is incorporated into a housing proj…
Is a nonprofit hospice group exempt from Kansas sales tax on its purchases?
Not exempt. Although 1998 Senate Bill 493 added sales tax exemptions for certain organizations (such as nonprofit zoos and parent-teacher organizations), the Department advised that 'not every non-pro…
Are a community action group's materials and labor to repair or weatherize low-income housing exempt from Kansas sales tax?
Both are exempt. K.S.A. 79-3606(oo) exempts tangible personal property a community action group or agency buys to repair or weatherize housing occupied by low-income individuals, so the materials are …
Are purchases of medical supplies and equipment by a nonprofit nursing home exempt from Kansas sales tax?
Partly exempt. Under Senate Bill 309 (1987), all sales of medical supplies and equipment purchased directly by a nonprofit skilled nursing home or nonprofit intermediate nursing care home -- as define…
Must a church collect Kansas sales tax on a months-long consignment fundraiser selling greeting cards for UNICEF?
The church must collect tax on the card sales. Kansas's new exemption for religious institutions extends to their purchases, not their sales, and because of the duration of the event no exemption reac…
How does Kansas tax an out-of-state dealer that builds fabric-covered steel farm shelters in Kansas?
The builder is a contractor-consumer and owes Kansas use tax on its materials. Fabric-covered steel-arch farm shelters are 'buildings,' so the dealer that builds them is a contractor and the consumer …
Are hauling and transporting services subject to Kansas sales tax?
Not taxable, with a catch on your own purchases. Kansas taxes only enumerated services, and transporting (hauling) services are not currently among them -- so long as you are not engaged in the sale o…
Must an alarm company charge Kansas sales tax on security monitoring fees, and how is a bundled monitoring-plus-equipment charge taxed?
Don't tax the monitoring fee; the provider pays tax on the equipment. Security monitoring is not an enumerated taxable service under K.S.A. 79-3603, so monitoring fees are not subject to Kansas sales …
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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.