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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Which sterilization, lighting, HVAC, and air-cleaning equipment qualified for Kansas's integrated production exemption?
Equipment sterilizing bottles or containers for the finished product qualified as exempt packaging equipment, and its operating electricity was exempt. General plant lighting, heating, cooling, ventil…
Are medical-record copying, storage, digital database, and file-management services subject to Kansas sales tax?
No, the services are not taxable. The Department ruled that no imposition exists in Kansas law to tax a company's medical-record copying, monthly storage, virtual (digital) file-room database, or file…
Is a nonprofit senior center exempt from Kansas sales tax?
No. The Department ruled that this nonprofit organization is not exempt from Kansas sales tax. Although 1998 Senate Bill 493 added sales-tax exemptions for several deserving organizations — including …
Do construction materials bought with a political subdivision's bond proceeds stay exempt from Kansas sales tax if a private company buys the industrial revenue bonds?
Yes, they remain exempt. This ruling confirms an earlier Department ruling (issued August 30, 2001) that construction materials for the project are exempt from Kansas sales tax because they will be pu…
Must a newspaper collect Kansas sales tax on subscriptions, and does it still owe use tax on the free copies it gives away?
Yes, Kansas newspaper subscriptions are taxable. The Department ruled that a publisher must collect Kansas sales tax on subscriptions delivered by mail to a Kansas address (the specific rate is redact…
Which medical supplies and equipment — including rentals and delivery fees — are exempt from Kansas sales tax?
It depends on the item, a prescription, and the buyer. Under K.S.A. 79-3606(r), prescribed prosthetic and orthopedic appliances are exempt — from the items listed, only wheelchairs, shower/commode cha…
Can a company buy ATVs and watercraft tax-free if it modifies them and resells them?
Yes, the purchases are exempt. The Department agreed that a company buying all-terrain vehicles and watercraft to modify and then resell — to a dealer or an end user — may acquire them without paying …
Are hand tools sold to a Kansas manufacturer exempt from sales tax if the manufacturer uses them in production?
Exempt when the manufacturer's use test is met. The Department explained that Kansas law changed after the seller's 1999 inquiry: under the current integrated production exemption, K.S.A. 79-3606(kk),…
On a taxable installation contract, what is included in the Kansas sales-tax base — and can a contractor deduct overhead and profit?
Overhead and profit are part of the taxable base. Addressing contracts to install or apply tangible personal property — which the ruling cites K.S.A. 79-3606(p) as taxing — the Department explained th…
Must a nonprofit historical society collect Kansas sales tax when it sells books?
Yes. The Department ruled that a historical society must collect the appropriate Kansas sales tax on its sales of books whenever the purchaser cannot provide a properly completed exemption certificate…
Are disposable medical electrodes exempt from Kansas sales tax as prosthetic or orthopedic appliances?
No. The Department ruled that disposable electrodes do not qualify for the prosthetic and orthopedic appliance exemption in K.S.A. 79-3606(r), and so are subject to Kansas sales tax. That exemption co…
Does an organization that sells coupons or discount cards redeemable by third-party merchants have to collect Kansas sales tax?
Yes, the seller must remit sales tax. The Department's policy is that an organization engaged in the retail sale of coupons or discount cards that are redeemable by third-party merchants is the retail…
Are construction materials bought with STAR bond or IRB proceeds, and the construction labor, exempt from Kansas sales tax?
The materials and the construction labor are exempt. The Department agreed with a company financing a retail and distribution facility with STAR bonds and industrial revenue bonds (IRBs) that: (1) mat…
Are T-shirt sales taxable in Kansas if all the profits go to charity, and must consignment sellers collect the tax too?
Yes, the T-shirt sales are taxable. Even though the profits are going to charity (the United Way Fund in New York City), the Department ruled that under K.S.A. 79-3603(a) the seller must collect, repo…
Is repair and handyman labor (and mileage) taxable in Kansas, and is work done to a residence exempt?
Service labor and mileage are generally taxable — but residential repair labor is exempt. The Department explained that Kansas taxes labor to install, apply, alter, maintain, service, or repair tangib…
Which roadside services — towing, winching, unlocking, jump starts, tire changes — are subject to Kansas sales tax?
It depends on the service. Because Kansas taxes services only when they are specifically enumerated, the Department ruled that towing, winching, unlocking and jump-starting vehicles, and delivering fu…
Are hydrovacing (hydro-excavation) services subject to Kansas sales tax?
Not taxable, if separately stated. The Department ruled that hydrovacing services should be given the same sales-tax treatment as excavating services and are not subject to Kansas sales tax — provided…
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…
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…
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…
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…
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…
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…
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…
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…
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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.