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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If I sell my used car myself and buy another, how is Kansas sales tax figured?
Kansas Notice 24-19 explains 2024 House Bill 2098, which, for transactions on and after January 1, 2025, gives an individual a trade-in-style tax break even when they sell a used motor vehicle themsel…
Are manufacturer cash rebates on a new vehicle exempt from Kansas sales tax?
Kansas Notice 24-01 explains that 2022 Senate Substitute for House Bill 2239 amended the definition of "sales or selling price" in K.S.A. 79-3602(ll)(3)(E) to remove the sunset on excluding certain ma…
Did Kansas repeal the accelerated monthly filing frequency for sales tax?
Kansas Notice 22-02 explains that 2022 House Bill 2136 (Section 18) amended K.S.A. 79-3607 to repeal the "Accelerated Monthly" sales tax filing frequency, effective July 1, 2022. Retailers' sales tax …
Did Kansas eliminate click-through nexus for out-of-state retailers, and what replaced it?
Kansas Notice 21-23 explains that 2021 Senate Bill 50 (Section 14) amended K.S.A. 79-3702 to eliminate the 'click-through' nexus provisions for affiliated persons in the compensating use tax act. Prev…
When must an out-of-state remote seller collect Kansas sales and use tax?
Kansas Notice 21-17 explains that 2021 Senate Bill 50 (Section 14) amended K.S.A. 79-3702 to expand 'retailer doing business in this state' and create an economic-nexus 'remote seller' category with a…
When must a marketplace facilitator that sells products collect Kansas sales or use tax?
Kansas Notice 21-14 explains how 2021 Senate Bill 50 (New Sections 1-4) applies to marketplace facilitators that sell products -- the first Kansas law to recognize marketplace facilitator platforms. A…
Are manufacturer cash rebates on a new motor vehicle exempt from Kansas sales and use tax?
Kansas Notice 18-02 explains that, effective July 1, 2018 through June 30, 2021, a cash rebate granted by a manufacturer to the purchaser or lessee of a new motor vehicle is not subject to Kansas reta…
How did Kansas change the vendor discount rate for Missouri and Nebraska retailers?
Kansas Notice 14-17 reduces the reciprocal 'vendor discount' Kansas allows out-of-state retailers who collect and remit the Kansas Retailers' Compensating Use Tax. Under agreements in effect since 196…
What vendor discount applied to Kansas and Oklahoma retailers under the reciprocal use-tax agreement?
For transactions on or after July 1, 2010, Kansas and Oklahoma retailers received a reciprocal 1% discount on timely remitted use tax, capped at $2,500 per month. The revised notice also states that, …
What Kansas compensating-use-tax discount applied to Colorado retailers after July 1, 2009?
Colorado retailers received no Kansas compensating-use-tax vendor discount on Form CT-9U returns filed on or after July 1, 2009. The revised notice also lists later reciprocal rates for Nebraska, Miss…
Are software licenses that only grant remote access to software hosted outside Kansas subject to Kansas sales or use tax?
Not taxable. The Department ruled that purchases of software licenses and support services are not subject to Kansas Retailers' Sales Tax or Consumers' Compensating Use Tax when the licenses only gran…
What are Kansas's Streamlined Sales Tax rules for how and when sales and use tax returns and payments are made?
To comply with the Streamlined Sales and Use Tax Agreement, Kansas announced that sales and compensating (use) tax remittances (K.S.A. 79-3601 et seq.) may be paid by ACH Credit or Debit; that a retur…
Are purchases of software licenses and support services taxable in Kansas when no prewritten software is received?
Not taxable. The Department ruled that purchases of software licenses and support services are not subject to Kansas Retailers' Sales Tax or Consumers' Compensating Use Tax where, as the taxpayer repr…
Were separately stated delivery charges for direct mail subject to Kansas sales or compensating-use tax?
No. Effective July 1, 2007, delivery charges for qualifying direct mail were excluded from Kansas sales and compensating-use tax when separately stated on the invoice or similar billing document. The …
Are tarps bought by a farmer or rancher to cover harvested hay exempt from Kansas sales and compensating use tax as farm machinery or equipment?
Yes. The Kansas Department of Revenue concluded that a tarp purchased by a farmer or rancher and used to cover harvested hay qualifies for the farm machinery or equipment exemption from Kansas sales a…
Did Kansas's farm-machinery sales-tax exemption cover ATVs or work-site utility vehicles, and how were interstate sales treated?
ATVs did not qualify for Kansas's farm machinery and equipment exemption, including their parts and repair labor. A defined work-site utility vehicle with a bed or cargo box could qualify — along with…
When did a manufacturer's cash rebate reduce the taxable price of a new motor vehicle purchased or leased in Kansas?
For a new motor vehicle sold or leased from July 1, 2006 through June 30, 2009, a manufacturer's cash rebate was excluded from Kansas sales and compensating-use tax only when the manufacturer paid it …
Did the requesting youth nonprofit qualify for a Kansas retailers' sales or compensating tax exemption under K.S.A. 79-3606(ii)?
No. The requesting youth nonprofit asserted that it qualified under K.S.A. 79-3606(ii), but the Department reviewed the sales-tax exemptions and found none that encompassed the organization. Nonprofit…
Did a nonprofit corporation or charity automatically qualify for exemption from Kansas retailers' sales and compensating taxes?
No. The Department reviewed K.S.A. 79-3606 and found no exemption that encompassed the requesting nonprofit corporation or charity. Kansas narrowly construes tax exemptions, and nonprofit status alone…
Did the requesting nonprofit corporation qualify for exemption from Kansas retailers' sales and compensating taxes?
No. After reviewing K.S.A. 79-3606, the Department found no exemption encompassing the requesting nonprofit corporation. Kansas construes exemptions narrowly, so nonprofit status by itself was not eno…
Did the requesting organization fall within a group exempt from Kansas retailers' sales and compensating taxes?
No. The Department reviewed the exemptions in K.S.A. 79-3606 and found none that encompassed the requesting organization. Kansas requires an organization claiming exemption to fit the statute's plain …
Did the requesting not-for-profit qualify for exemption from Kansas retailers' sales and compensating taxes?
No. The Department reviewed K.S.A. 79-3606 and found no exemption that encompassed the requesting not-for-profit. Kansas narrowly construes exemptions, so not-for-profit status alone did not qualify. …
Did a Texas call center with no Kansas property, employees, inventory, or fixed assets have to collect Kansas tax when arranging Kansas electrical subcontractors?
No under the 2004 facts and physical-presence analysis. The Texas call center had no Kansas location, employees, inventory, or fixed assets and only arranged for nearby electrical subcontractors to pe…
Could Kansas contractors get an exemption or refund of local use tax on out-of-state materials for public works contracts signed before July 1, 2003?
Since July 1, 2003, out-of-state materials incorporated into non-exempt Kansas projects have owed both state compensating use tax and applicable local use tax. Section 4 of 2004 HB 2375 exempted the L…
Did Kansas's local compensating use tax apply after July 1, 2003 to equipment leases with Kansas franchisees that already existed?
Yes. State and local compensating use tax applied to equipment-lease receipts for reporting periods after July 1, 2003, even when the lease contract already existed. The new law contained no grandfath…
Does a Kansas fulfillment center collect sales tax on books it ships for publishers, or do the publishers?
The publishers, not the fulfillment center. A Kansas fulfillment center that only warehouses and ships books it does not own is not a 'retailer' and does not collect Kansas sales or use tax on those s…
Is the rental of construction equipment to a contractor installing manufacturing machinery exempt from Kansas sales or use tax?
No. The Department advised that Kansas law does not exempt the purchase or rental of construction equipment by a contractor for the purpose of installing manufacturing machinery, so the rental of that…
Is a third-party hauler's separate charge to deliver materials to a job site subject to Kansas sales or use tax?
No, on these facts. The Department advised that where an asphalt paving contractor buys materials and separately hires an independent third-party hauler (paid separately from the supplier) to deliver …
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…
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…
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…
Must a manufacturer accrue Kansas compensating use tax on free prescription-drug samples given to practitioners?
Exempt. The Department ruled that a manufacturer does not have to accrue Kansas compensating use tax on free samples of prescription drugs given to practitioners. Ordinarily, a company must accrue tax…
How did Kansas tax internet skin-care sales when an out-of-state multilevel distributor had dependent agents operating in Kansas?
Under the 2000 rules, dependent agents operating in Kansas gave the out-of-state distributor Kansas sales-and-use-tax nexus even if the website and inventory were elsewhere. Internet orders shipped di…
Is a parent-teacher association exempt from Kansas sales and compensating tax on both its purchases and its sales?
Yes — a parent-teacher association is exempt under K.S.A. 79-3606(yy), so it neither pays Kansas sales or compensating (use) tax on what it buys and consumes nor collects tax on its sales of tangible …
How does a contractor owe Kansas state, local, and use tax on materials and supplies it buys in- and out-of-state?
A contractor pays Kansas state and local sales tax on materials bought from an in-state retailer (local tax sourced to the retailer's place of business), and Kansas compensating (use) tax on materials…
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…
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…
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 …
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 sales of discount cards and prepaid telephone cards subject to Kansas sales tax, and what use tax applies to promotional magazines?
Discount-card sales are not taxed as admissions; use tax reaches the magazines. The Department found K.S.A. 79-3603(e) does not tax the retail sale of discount cards that give holders access to discou…
How does Kansas sales tax apply to a company's shipping/handling charges, distributor support fees, carrier damage payments, and newsletters mailed into Kansas?
A mix of results. Kansas sales tax is based on the retail selling price plus shipping, handling, or freight charged to the distributor. A carrier's payment to a retailer for damaged goods is recovery …
Does a Kansas manufacturer charge sales tax on separately invoiced customized dies and artwork that stay in Kansas?
It depends on who the customer is. When a Kansas manufacturer sells to a bona fide reseller and bills the reseller for both the manufactured item and the customized items (dies, artwork, silk screens,…
In a pick-and-pack fulfillment arrangement, are the printing costs, picking fees, and packing fees subject to Kansas sales tax?
In this pick-and-pack and printing arrangement, the Department ruled that the printing costs are taxable — Kansas sales tax if the material is printed in Kansas, otherwise Kansas compensating (use) ta…
Must a Kansas buyer pay the compensating use tax billed by an out-of-state seller that has no Kansas warehouse, absent an exemption certificate?
Yes. An out-of-state seller registered to collect Kansas compensating (use) tax shipped equipment to a Kansas buyer and billed the tax; the buyer refused, arguing the seller had no Kansas warehouse. T…
Does Kansas use tax apply to promotional materials a printer is obligated to deliver to a Kansas address?
Yes. Kansas use tax is levied for the privilege of using, storing, or compounding tangible personal property in the state, at a rate of 4.9% of the consideration paid. The Department ruled that a comp…
What Kansas state and local use tax did out-of-state vehicle lessors collect beginning August 1, 1994?
For vehicle lease payments billed on or after August 1, 1994, an out-of-state dealer or lessor had to collect Kansas state compensating use tax and local compensating use tax when the leased vehicle w…
When a leased vehicle is sold (for example, the lessee buys it at the end of the lease), who collects the Kansas sales or use tax?
It depends on whether the seller is a licensed Kansas vehicle dealer. A lessor that holds a valid Kansas Vehicle Dealers License (under K.S.A. 8-2403) collects the Kansas sales tax on the purchase pri…
How is Kansas sales or compensating tax collected on boats, especially boats bought out of state, after 1987 Senate Bill 195?
Under 1987 Senate Bill 195, effective July 1, 1987, a boat owner had to show proof that sales or compensating tax was paid before the Fish and Game Commission would process a boat-number application. …
Is motor fuel burned off-highway in land-improvement and construction work subject to Kansas sales or use tax, and when is it exempt?
Yes. Motor fuels (gasoline, gasohol, diesel, and L-P gas) consumed off-highway in equipment building farm ponds, terraces, waterways, grading, landscaping, or preparing building sites were subject to …
Are freight and transportation charges on a taxable sale delivered to a Kansas customer part of the taxable selling price?
Yes. Since July 1, 1971, both interstate and intrastate freight and transportation charges made in connection with the taxable sale of tangible personal property, for delivery to the ultimate user or …
Does the Soldiers and Sailors Civil Relief Act exempt a serviceman from Kansas sales tax when titling a car in Kansas?
No. The Kansas Department of Revenue determined that the Soldiers and Sailors Civil Relief Act does not grant relief from Kansas sales tax on a serviceman's purchase of an automobile. A serviceman may…
When did Kansas relieve sellers or purchasers from sales- or use-tax liability caused by short-notice rate changes or erroneous Department data?
Kansas gave limited relief in two situations. When a sales- or compensating-use-tax rate change took effect less than 30 days after enactment, a seller was not liable for using the immediately precedi…
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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.