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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Did checking a Kansas sales-tax exemption number online replace the retailer's duty to keep the purchaser's exemption certificate?
No. Kansas created an online service allowing a registered retailer to verify a Department-issued exemption number and view the exempt entity's identifying information and certificate expiration date.…
When and at what local rate does a roofing contractor that fabricates panels on-site pay Kansas sales tax on its coil and materials?
As a contractor, it pays tax when it takes delivery of the materials, at the local rate where delivery occurs. A business that fabricates standing-seam roof panels, framing, and flashing at the job si…
What were the major 2005 Kansas legislative changes to the taxes and motor-vehicle programs administered by the Department of Revenue?
This notice summarizes the major 2005 Kansas tax and motor-vehicle enactments. Highlights include new income-tax credits (the Individual Development Account credit on Schedule K-68, a science/math tea…
Are USDA GMP-mandated building materials (special flooring, wall paint, doors) exempt under Kansas's manufacturing exemption?
No. A pharmaceutical manufacturer's purchases of USDA GMP-mandated special floor coatings, wall paint, sheet rock, interior doors, and flooring are taxable. The integrated plant exemption in K.S.A. 79…
Is an implantable spinal device (a prosthetic device) exempt from Kansas sales tax even when a for-profit hospital buys it?
Yes. A motion-preserving implant surgically placed between the spinous processes is a prosthetic device that is exempt from Kansas sales tax under K.S.A. 79-3606(r), which exempts prosthetic devices p…
Is remodeling labor on a nursing or assisted-living facility taxable in Kansas?
It depends on the area. Labor to remodel the residential portions of a nursing or assisted-living facility is exempt from Kansas sales tax, while labor on the commercial portions is taxable. Following…
Is a political subdivision's sale of a duty weapon to a retiring officer subject to Kansas sales tax?
Yes. When a political subdivision sells a retiring officer's duty weapon to that officer, the sale is subject to Kansas retail sales tax. The government exemption in K.S.A. 79-3606(b) covers the polit…
Which of a YMCA's receipts — memberships, recreational program fees, and retail sales — are subject to Kansas sales tax?
Most of a qualifying YMCA's receipts are not taxed. Because a YMCA that is exempt from property tax under the Ninth paragraph of K.S.A. 79-201 falls within K.S.A. 79-3603(m), its fees and charges for …
Are sales of wound closure devices exempt from Kansas sales tax?
Yes, in the instances presented. The Department applied K.S.A. 79-3606(b), which exempts sales, leases, and rentals of tangible personal property purchased directly by a public or private nonprofit ho…
Are sales and leases of therapeutic medical beds and mattresses exempt from Kansas sales tax?
It depends on the buyer and use. The exemption the Department identified is K.S.A. 79-3606(b), which exempts sales, leases, and rentals of tangible personal property purchased directly by a public or …
What must a religious organization show to qualify for a Kansas sales-tax exemption, and did this one qualify?
To qualify under K.S.A. 79-3606(aaa), a religious organization must meet the statutory definition (a group gathering for worship at an established place of worship, with no earnings inuring to members…
Could Kansas taxpayers deduct sales tax on federal Schedule A, and could homeowners deduct the sales tax on their 2004 residential construction materials?
For 2004, individuals who itemized on federal Schedule A could choose to deduct state and local general sales taxes instead of state and local income taxes -- but not both (IRS Publication 600). Sales…
Can an organization with a Kansas manufacturer's exemption also claim exemption as a nonprofit educational institution?
Not as an educational institution. The organization already held a Manufacturer's Exemption letter, letting it buy materials used in its manufacturing process exempt from sales tax. But it no longer q…
Does an organization qualify for a Kansas sales-tax exemption just because it requests one?
No. Kansas tax exemptions are narrowly construed, so an organization must clearly fit the plain language of a specific exemption statute. After reviewing the more than 60 exemptions in K.S.A. 79-3606,…
How does Kansas tax a Missouri company's rentals of party equipment to caterers and customers across the state line?
Rentals to caterers are taxable, and the delivery point controls which state's tax applies. A caterer is treated as using rented tables, chairs, tents, and tableware to provide its service, not resell…
Can a contractor buy materials tax-free for a political subdivision's construction project by routing purchases through an affiliated purchasing company?
Not by itself. When a construction joint venture (a contractor plus an affiliated purchasing company) contracts with a Kansas political subdivision, the Department looks at the substance: it is a cons…
When is Kansas sales tax not due on a sale to a nonresident who takes delivery in Kansas?
Under K.S.A. 79-3606(k), Kansas retailers' sales tax is not due when a bona fide resident of another state buys and takes delivery in Kansas of a motor vehicle, semitrailer, pole trailer, or aircraft …
How did Kansas tax uniform and linen rentals, restroom-supply services, laundry inputs, delivery charges, and equipment purchases?
Uniform, garment, mat, mop, towel, cabinet, and dispenser rentals were taxable on the full charge, including delivery; retail merchandise sales were also taxable. Rental inventory, component parts, th…
When were Kansas's new numbered Tax-Exempt Entity Exemption Certificates issued, and when must retailers require them?
This notice announced that the new numbered Tax-Exempt Entity Exemption Certificates (form series PR-78) had been issued -- more than 8,500 Kansas exempt entities received them since November 1, 2004.…
Why did Kansas start assigning Tax-Exempt Identification Numbers and numbered certificates to exempt entities, effective January 1, 2005?
Under Sections 16 and 21 of 2004 House Bill 2375, effective January 1, 2005, entities exempt under K.S.A. 79-3606 must provide a Tax-Exempt Identification Number issued by the Department, on a special…
Are aircraft repair parts and services exempt from Kansas sales and use tax, and when do aircraft sales stay taxable?
Beginning January 1, 2005, the sale of aircraft repair, modification, and replacement parts, and the services used in the remanufacture, modification, and repair of all aircraft, are exempt from Kansa…
Are sales and repairs of hearing aids exempt from Kansas sales and use tax, and what must the seller be?
Effective January 1, 2005, the sale of hearing aids (as defined by K.S.A. 74-5807(c)), replacement parts, and batteries is exempt from Kansas state and local sales and use tax under 2004 Senate Bill 1…
What new Kansas sales tax exemptions took effect on January 1, 2005?
This notice lists Kansas sales/use tax exemptions effective for sales on or after January 1, 2005: purchases and sales by three named IRC 501(c)(3) charities (K.S.A. 79-3606(vv)); aircraft repair part…
Should a contractor refund sales tax charged on labor and materials used to build a concrete foundation at an electric substation?
No. The Department said labor and materials used to build an electric-substation foundation were taxable and the contractor should neither issue the requested $2,111.90 refund nor exempt similar futur…
Can a Kansas motor vehicle dealer lose its license for failing to file sales or withholding tax returns?
Yes. Effective July 1, 2004, House Bill 2375 amended K.S.A. 8-2411(b) of the Dealer Licensing and Manufacturer's Act to make suspension or revocation of a motor vehicle dealer's license mandatory — th…
Is a Kansas community action agency exempt from sales tax on all of its purchases as an entity or political subdivision?
No. Kansas did not exempt community action agencies as a class, and the agency described did not qualify as a political subdivision merely because it was created under federal law or funded with gover…
Is alarm monitoring service taxable in Kansas, and is installing the equipment taxed differently for homes and businesses?
Monitoring service itself is not taxable in Kansas — a Missouri company charging Kansas residents for monitoring does not charge Kansas sales tax on it, because the Kansas sales tax act does not tax m…
Is an external defibrillator exempt from Kansas sales tax when sold under a physician's written order?
No. A physician's written order did not make an external defibrillator exempt under K.S.A. 79-3606(r). The device did not meet the statute's definition or use requirements for either mobility-enhancin…
Are a school's sales of cookies, crafts, and plants exempt from Kansas sales tax?
It depends on who the sale is for. K.S.A. 79-3606(yy) exempts sales of tangible personal property made by or on behalf of a parent-teacher association or organization (PTA/PTO). So if the school is se…
Where is Kansas sales tax collected on repair services, and when is an out-of-state delivery exempt?
Kansas repair shops collect state and local sales tax based on where the repaired property is delivered to the customer in Kansas — usually at the shop or at the customer's home or place of business. …
Is an HVAC contractor's markup on materials subject to Kansas sales tax?
It depends on whether the underlying service is taxable. An HVAC contractor correctly pays Kansas sales or compensating tax on its material purchases. When the contractor performs a taxable service, i…
Are glucose tablets, lancets, and alcohol swabs subject to Kansas sales tax?
The ruling's text is internally inconsistent, so read it with care. It opens by stating that the answer is 'yes' — that selling glucose tablets, lancets, and alcohol swabs is subject to Kansas sales t…
Are delivery charges included in the base for calculating Kansas sales or compensating tax?
Yes. Delivery charges are part of the taxable base for Kansas sales and compensating (use) tax. Under K.S.A. 79-3602(i), 'delivery charges' are the seller's charges for preparing and delivering proper…
Is installing floor coverings in a new home taxable, and does the installer owe tax on its carpet and materials?
The labor is exempt; the materials are taxable. Installing floor coverings in connection with the original construction of a building — here, a new residence built for a homebuilder — is a labor servi…
Is the service of moving dirt for a developer between the developer's properties subject to Kansas sales tax?
No. Moving dirt for a developer from one of his properties to another is not a taxable service in Kansas. Kansas taxes services only when they are specifically listed in the sales tax act, and dirt-mo…
Are sales of discount coupon books redeemable at third-party merchants subject to Kansas sales tax?
Yes. Selling discount coupon books — where the coupons are redeemable at various third-party merchants — is a taxable retail sale. Under K.S.A. 79-3603(a), sales tax applies to the gross receipts from…
Must a vendor selling meals on a Kansas military base (Fort Leavenworth) charge Kansas sales tax?
Yes. A vendor selling meals at Fort Leavenworth must charge Kansas state and any applicable local sales tax. Kansas retailers must collect sales tax on retail sales made on military reservations in th…
Must a not-for-profit wellness facility collect Kansas sales tax on membership dues if its property-tax exemption comes from K.S.A. 79-201a?
Yes. The not-for-profit must keep collecting Kansas sales tax on its membership wellness dues. K.S.A. 79-3603(n) taxes dues that entitle members to use recreation or entertainment facilities, and it e…
Is a motor vehicle sold and delivered in Kansas to a bona fide resident of another state subject to Kansas sales tax?
No, if the conditions are met. A motor vehicle sold and delivered in Kansas to a bona fide resident of another state is exempt from Kansas sales tax under K.S.A. 79-3606(k), provided the vehicle will …
How did Kansas tax telephone, sewer, refuse, electricity, water, natural gas, and other utility services for homes and businesses?
Telephone services were generally subject to state and local sales tax, while sewer and refuse services were not taxable. Electricity, water, natural gas, and other fuel for residential noncommercial …
Are water and natural gas used to make steam for required sanitation at slaughterhouses and food-processing plants exempt as consumed in production?
No. Water and gas used to create steam for cleaning and sanitizing slaughterhouse, meat-packing, or food-processing equipment were taxable, even when USDA rules required the sanitation every 16 produc…
Do Kansas contractors owe sales or use tax on the materials and supplies they buy for their construction projects?
Yes. In Kansas a contractor is treated as the final consumer of the supplies and materials it uses on a construction project, so the contractor owes sales or use tax on everything it buys for the job …
Does a compressor in a natural gas pipeline compressor station qualify for the Kansas manufacturing machinery and equipment exemption?
No. A compressor in a natural gas pipeline compressor station — used to boost line pressure so gas can move down the pipeline — does not qualify for the manufacturing machinery and equipment exemption…
How did Kansas sales tax and transient guest tax apply when an accommodations broker subleased apartments for short or extended stays?
An accommodations broker's room-rental receipts were subject to Kansas sales tax regardless of how long the same guest stayed; Kansas law had no minimum-stay exclusion from sales tax. Transient guest …
Does a Kansas 501(c)(3) nonprofit automatically qualify for a sales-tax exemption on its purchases?
No. Kansas does not have a broad sales-tax exemption for 501(c)(3) organizations, so being a federally tax-exempt nonprofit is not enough. The Department checked whether the crisis-pregnancy and adopt…
Does a church-affiliated health-care foundation qualify for the Kansas religious-organization sales-tax exemption?
No. A church-affiliated health-care fund does not qualify for the Kansas religious-organization sales-tax exemption in K.S.A. 79-3606(aaa). That exemption requires both a 'religious organization' (a w…
How should a recreation business spanning two Kansas counties allocate local sales tax on retail sales and golf green fees?
Retail and recreational activity occurring wholly in one county was allocated entirely to that county; tangible-property sales generally followed the cash-register location. For golf courses crossing …
Are nafion membranes used in an integrated chemical-production process exempt from Kansas sales tax?
Exempt. Nafion membranes that serve as dividers in the electrolytic cells producing caustic soda and chlorine are repair or replacement parts within the taxpayer's integrated production operation and …
Are sales of drugs to licensed practitioners (dentists, optometrists, veterinarians) exempt from Kansas sales tax?
Exempt. Under K.S.A. 79-3606(q), sales of drugs (as defined in K.S.A. 65-1626) to a person licensed to practice the healing arts — including dentistry, optometry, and veterinary medicine — for that pe…
Is transferring a vehicle from a partner to the partnership subject to Kansas sales tax?
Yes — it's taxable. Under K.A.R. 92-19-30(j)(3), a transfer of a vehicle from a partner to the partnership (or from the partnership to a partner) is presumed to be a taxable transfer. A partner's cont…
Is engraving a memorial marker subject to Kansas sales tax?
Yes — it's taxable. Engraving a memorial marker (for example, adding the final date after a surviving spouse dies) is 'altering' tangible personal property, one of the services Kansas subjects to sale…
Is a Christian nonprofit charity exempt from Kansas sales tax on its purchases?
No. Kansas has no blanket sales-tax exemption for 501(c)(3) charities, so this Christian children's-relief nonprofit is not exempt just because it does faith-based charitable work. The only category e…
For Kansas's 10-day aircraft fly-away exemption, does the removal period begin when title to a green aircraft passes or when the buyer accepts the completed aircraft?
The 10-day period began when the out-of-state buyer took delivery of the aircraft in its completed, final condition, not when title and risk of loss passed on the flyable but unfinished green aircraft…
Does a nonprofit apprenticeship fund qualify for the Kansas educational-institution sales-tax exemption?
No. A nonprofit apprenticeship fund is not an 'educational institution' as Kansas now defines that term (a nonprofit school/college/university offering education above the twelfth grade, or an entity …
Is providing on-hold message equipment to businesses taxed as a service or as a lease of equipment?
It's taxed as a lease of tangible personal property, not as a taxable 'telephone answering service.' A company that installs on-hold message equipment at a customer's premises (playing a pre-recorded …
Under Kansas destination-based sourcing, how are a contractor's materials and labor taxed, and what about out-of-state jobs?
The contractor is the consumer of the materials it installs. Under destination-based sourcing, Kansas state and local use tax applies where the contractor receives the materials (its business location…
Under Kansas destination-based sourcing, where is a contractor taxed on materials pulled from its own inventory?
At the warehouse. A subcontractor that keeps garage doors and fireplaces in inventory (bought tax-free for resale) is the consumer of those materials when it withdraws them to install them. Under dest…
Are dietary and health-care supplements subject to Kansas sales tax?
Yes — taxable. Kansas imposes sales tax on retail sales of tangible personal property under K.S.A. 79-3603(a), and there is no exemption for dietary or health-care supplements. A company selling them …
Are boat and camper storage charges subject to Kansas sales tax?
Storage itself is not taxable. Charges for boat storage and camper storage — the rental of space for storage — are not among the services Kansas enumerates as taxable, so no sales tax applies. But mai…
Is an ASP dictation / website file-transfer service subject to Kansas sales tax?
Not taxable. An ASP service that lets customers call an 800 number to record dictation or use a website to transfer files is not one of the services specifically enumerated in the Kansas sales tax act…
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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.