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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Is a mobile point-of-sale device that sells paid premium content a taxable coin-operated device in Kansas?
Yes — it is a taxable coin-operated device. Because the mobile point-of-sale device grants customers paid access to premium content (news, videos, sports, games — 'amusement and diversion'), the Depar…
How do Kansas retailers report July 2015 sales when they lawfully charged both the 6.15% and 6.5% state rates?
Kansas Notice 15-03 (June 30, 2015) is the companion to Notice 15-02 and explains a rate-increase adjustment that certain retailers claim on their July 2015 sales and use tax return so they do not pay…
How does the July 1, 2015 increase in the Kansas sales and use tax rate to 6.5% apply to sales, leases, services, and contracts?
Kansas Notice 15-02 (June 22, 2015) explains that the Kansas state sales and use tax rate increased from 6.15% to 6.5% on July 1, 2015, and sets out transition rules determining which rate applies to …
How do Kansas sales, use, and transient guest taxes apply when a buyer presents a federal diplomatic Tax Exemption Card?
Kansas honors the diplomatic Tax Exemption Card issued by the U.S. State Department's Office of Foreign Missions (OFM) -- and the American Institute in Taiwan equivalent -- for state and local sales, …
Can Kansas motor fuel tax be refunded on diesel burned in a truck's diesel particulate filter 'regeneration' cycle?
No. Kansas motor fuel tax paid on diesel consumed in a diesel particulate filter's 'regeneration' cycle is not refundable. K.S.A. 79-3453 refunds fuel tax on fuel used 'for any purpose other than oper…
When did the Kansas state sales and use tax rate change to 6.15%, and how do transition rules apply?
Kansas Notice 13-08 (June 6, 2013), which revokes and replaces the erroneous Notice 13-07, explains that 2013 House Bill 2059 changed the Kansas state sales and use tax rate from 6.3% to 6.15% on July…
When must a remote retailer register and collect Kansas sales or use tax after the 2013 changes?
Kansas Notice 13-05 (May 2013) explains that Sections 9 and 18 of 2013 Senate Bill 83 expanded when certain remote retailers must register with the Department and collect and remit Kansas retailers' s…
Is the safety equipment an oil-well services company buys for its employees exempt from Kansas sales tax?
Taxable. Safety equipment that an oil-well services company buys and gives to employees — hydrogen sulfide monitors, hard hats, safety glasses, ear plugs, safety lanyards and harnesses, and flame-resi…
Are interior lights and exhaust fans (and the electricity they use) at a manufacturing plant exempt under Kansas's integrated-production exemption?
Taxable. The Department ruled that a manufacturer's purchase and installation of metal-halide interior lights and air-exhaust fans for its Kansas plant and warehouse — and the electricity those lights…
Must a Kansas gun dealer collect sales tax on a firearm shipped in from an out-of-state seller and handed to a resident buyer?
No tax on the transfer — but the dealer's own retail sales are still taxable. A Kansas Federal Firearms Licensee (FFL) that simply receives a firearm shipped by an out-of-state seller and transfers it…
Are the labor to dispose of drilling dirt and the purchase of fly ash used in that disposal subject to Kansas sales tax?
The disposal service is not taxable, but the materials are. The Department ruled that the service to dispose of dirt excavated while drilling a deep disposal well is not a taxable service. However, an…
How does Kansas sales tax apply to sales of propane, and which uses are exempt?
The retail sale of propane in Kansas is generally subject to Kansas Retailers' Sales Tax, but several uses are exempt. Propane sold to a residence for heating or lighting is exempt from the STATE tax …
Is a monthly fee to access and use pre-written software hosted on an out-of-state server subject to Kansas sales or use tax?
Not taxable. A monthly fee that lets a Kansas customer log in through a web browser to access and use a pre-written software program running on a server located in California is not subject to Kansas …
Does Kansas give credit for sales tax lawfully paid to another state when purchased property is later first used in Kansas?
Yes. Under K.S.A. 79-3704(c), Kansas gives credit for sales tax lawfully paid to the state where the property was purchased. If the combined Kansas state and local use-tax rate at the place of first K…
How does Kansas sales and use tax apply to an electric-sign fabricator's sales, set-up, construction, and repair charges?
A custom sign maker is treated as a fabricator and retailer. It buys sign materials for resale and collects Kansas sales (or retailers' use) tax on the full price billed for the sign, including delive…
Is a trash-disposal company's recycling equipment exempt from Kansas sales and use tax as manufacturing equipment?
No. Even though Missouri exempts this company's recycling equipment as a 'Recovery Facility,' Kansas taxes it. The integrated production (manufacturing) exemption in K.S.A. 79-3606(kk) applies only to…
Does the Kansas manufacturing machinery and equipment exemption apply to the equipment in a natural gas producer's gathering systems, booster stations, and compressor stations?
Mostly no. The manufacturing machinery and equipment (integrated plant) exemption in K.S.A. 79-3606(kk) does not reach the equipment in a natural gas producer's gathering systems, booster stations, or…
Is an out-of-state company's electronic medical-billing service subject to Kansas sales or use tax?
No. An out-of-state company that prepares a provider's medical billings electronically and submits them electronically to insurers — producing no paper invoices — is providing a service that is not su…
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…
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…
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 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…
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 …
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…
Which state and local sales and use tax revenues from retailers in a redevelopment district could be pledged to repay special-obligation bonds?
All state sales and use tax collected by retailers doing business in the redevelopment district could be used to retire the special-obligation bonds. Local sales tax could be used when the sale occurr…
How is a publisher of free community magazines taxed on printing costs, advertising sales, and bartered ad space in Kansas?
As the final consumer of a free publication, the publisher owes tax on the printing. Under K.A.R. 92-19-12(d), a company that prints and distributes magazines free of charge is the final user of the m…
What are a finance company's Kansas sales and use tax duties under a conditional sales contract or purchase order financing arrangement?
A conditional sale is taxed on the full selling price when the goods are transferred, with separately stated finance charges excluded. A finance company financing such a deal isn't required to collect…
Does a custom reprographics/imaging business (blueprinting, diazo copying, CAD plotting) qualify for the Kansas manufacturing (integrated plant) exemption on its equipment and repair parts?
No. A custom reprographics and imaging business (blueprinting, diazo and plain-paper copying, mapping, CAD plotting, mounting/laminating) is treated as a retailer, not an industrial manufacturer, so i…
Is the sale of a discount-membership program (discounts at restaurants, stores, theaters, hotels, etc.) subject to Kansas sales or use tax?
No. The sale of a discount-membership program — giving members discounts at restaurants, retail stores, sporting events, movie theaters, hotels, and other providers, plus an 800 line and a members' we…
Is 'mylar' used and disposed of in molding fiberglass tanks exempt as property consumed in production?
Yes. The Department's opinion is that 'mylar' — placed on the mandrel to keep the fiberglass from sticking, then removed and thrown away once each tank is finished — is consumed in the production of t…
How did the July 1, 2002 Kansas state sales tax rate increase work, and how are transitional sales reported?
Under 2002 Senate Bill 39, Section 6, the Kansas state sales and use tax rate rose from 4.9% to 5.3% on July 1, 2002, applying to sales subject to tax on and after that date; local rates were unchange…
Is a company's purchase of reports subject to Kansas sales or use tax, or is there an exemption?
No exemption — the purchase is taxable. The Department advised that Kansas sales and use tax law provides no exemption for the sale of the Reports at issue, so the company must pay the appropriate Kan…
Could a separate purchasing entity use a Kansas direct-pay permit and then accept a resale certificate from the related operating entity that consumed the property?
No on the proposed facts. A direct-pay permit was for a taxpayer's own business-use purchases when the correct tax treatment or destination was difficult to determine. It was not meant to let one enti…
Can a Kansas contractor buy materials tax-free for an out-of-state job under the temporary-storage exemption?
Only in narrow circumstances. The Department ruled that a contractor may claim Kansas's temporary-storage exemption (K.S.A. 79-3702(e)) on materials only if they are (1) purchased from an out-of-state…
Are advertising catalogs given to customers free of charge subject to Kansas sales or use tax, and does Kansas exempt periodicals?
No periodical exemption, and the catalogs are taxable. The Department ruled that Kansas does not exempt periodicals from sales or compensating (use) tax, so a company's industry catalogs — even though…
Are engineering, design, fabrication, and installation of control panels for a manufacturer's machinery exempt from Kansas sales tax?
Yes, when two conditions are met. The Department ruled that a company's engineering, design, fabrication, and installation of control panels for machinery and equipment — together with the related equ…
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…
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…
May a seller accept a Missouri exemption certificate for carpet shipped to a Kansas retailer before the carpet is transported to Missouri for installation?
Do not accept the Missouri exemption certificate for a sale shipped to a Kansas retailer. The carpet nevertheless qualified for Kansas's temporary-storage exemption because it entered Kansas only for …
Do contractors pay Kansas sales or use tax on the materials and supplies they buy for construction and repair work?
Yes - contractors are the taxable consumers. The Department ruled that under K.S.A. 79-3603b(l), Kansas sales tax applies to sales of materials and supplies to contractors, subcontractors, and repairm…
Can a Kansas contractor buy materials tax-free for an out-of-state project under the temporary-storage exemption?
Only if bought out-of-state. The Department ruled that a contractor can claim the temporary-storage exemption under K.S.A. 79-3702(e) for materials used on an out-of-Kansas project only if the items a…
Are subscription receipts for newspapers, magazines, and periodicals mailed to Kansas subscribers subject to Kansas sales or use tax?
Taxable. The Department ruled that subscription receipts for newspapers, magazines, periodicals, trade journals, and other publications are subject to Kansas sales or use tax when the subscription is …
When a seller ships goods into Kansas and stocks them at a customer's site as inventory for resale, is that shipment subject to Kansas use tax — or is tax due only when the customer draws items from the stock?
Tax is due when the customer pulls an item from the stock, not on the shipment. The Department ruled that goods the seller ships to the customer's premises and holds there as inventory for resale are …
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,'…
Does a city owe Kansas sales or use tax on a fuel truck it buys for its airport?
Exempt — a city's direct purchase of a fuel truck for its airport is exempt from Kansas retailers' sales and compensating (use) tax under K.S.A. 79-3606(b), which exempts all direct purchases by a cit…
Are materials a contractor buys for a residential remodeling project subject to Kansas sales tax, and when is the tax due?
Yes. In Kansas a contractor is the final user of the materials it uses on a residential remodeling project, so those materials are subject to sales tax on their cost. A contractor pays the tax when it…
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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.