When did a work-site utility vehicle qualify for Kansas's farm-machinery sales-tax exemption, and did the exemption cover ATVs?

Plain-English summary

Effective July 1, 2006, Kansas allowed the farm machinery and equipment exemption for a work-site utility vehicle that met the statutory size and design definition, had a bed or cargo box for hauling materials, and was used only in qualifying agriculture.

Qualifying uses included farming, ranching, aquaculture production, farm or ranch work for hire, feedlot operation, a nursery, or a Christmas-tree farm. The exemption also covered repair or replacement parts and repair or maintenance services for the qualifying vehicle.

The retailer had to keep a completed Form ST-28F or a written certification on the retained invoice or sales ticket that the vehicle would be used only in farming, ranching, or aquaculture production.

ATVs remained taxable and did not qualify for the farm machinery and equipment exemption.

What this means for you

Vehicle design, exclusive use, and documentation all mattered. A utility vehicle used partly for nonqualifying purposes did not satisfy the notice's exclusive-use condition, and an ATV did not qualify regardless of agricultural use.

Common questions

Q: Did the vehicle need a cargo bed?
A: Yes. The exemption described a work-site utility vehicle equipped with a bed or cargo box for hauling materials.

Q: Did parts and repair services qualify?
A: Yes, for a qualifying work-site utility vehicle.

Q: What documentation was required?
A: Form ST-28F or the allowed written agricultural-use certification retained by the seller.

Q: Did ATVs qualify?
A: No. The notice expressly kept them taxable.

Citations and references

• 2006 Senate Bill 76.
• K.S.A. 8-126 — work-site utility vehicle definition.
• K.S.A. 79-3606(t) — farm and aquaculture machinery exemption.
• Form ST-28F — Agricultural Exemption Certificate.

Subject

Work-Site Utility Vehicle Farm Machinery & Equipment Sales Tax Exemption

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 06-02

Original ruling text

Notice
Notice Number: 06-02
Tax Type: Kansas Retailers' Sales Tax
Brief Description: Work-Site Utility Vehicle Farm Machinery & Equipment Sales Tax Exemption.
Keywords:
Approval Date: 06/06/2006

Body:
KANSAS DEPARTMENT OF REVENUE

                          NOTICE 06-02
                  “WORK-SITE UTILITY VEHICLE”
        FARM MACHINERY & EQUIPMENT SALES TAX EXEMPTION

Effective July 1, 2006 the retail sale of a “work-site utility vehicle” that is equipped with a bed or cargo box
for hauling materials may be purchased exempt from sales tax under the farm machinery and equipment
sales tax exemption if used only in farming, ranching or aquaculture production.

2006 Senate Bill 76 amended K.S.A. 8-126 to define a “work-site utility vehicle” as:

       ‘‘Work-site utility vehicle’’ means any motor vehicle which is not less than 48 inches in width, has
       an overall length, including the bumper, of not more than 135 inches, has an unladen weight,
       including fuel and fluids, of more than 800 pounds and is equipped with four or more low
       pressure tires, a steering wheel and bench or bucket-type seating allowing at least two
       people to sit side-by-side, and may be equipped with a bed or cargo box for hauling materials.
       (Emphasis added).

The same bill provides that a work-site utility vehicle that is equipped with a bed or cargo box for hauling
materials, is included within the definition of “farm machinery and equipment or aquaculture machinery and
equipment”. K.S.A. 7903606(t).

To qualify for the farm machinery and equipment exemption from Kansas retailers’ sales tax the purchase
must:

1) Be of a work-site utility vehicle, as defined above, that is equipped with a bed or cargo box for hauling
materials, or for repair or replacement parts therefor, or services performed in the repair or maintenance
thereon, and
2) the work-site utility vehicle must be used only in farming, ranching, aquaculture production, farm and
ranch work for hire, operation of a feed lot, nursery or for Christmas tree farm, and
3) the retailer must retain in its records an Agricultural Exemption Certificate, Form
ST-28F (copy attached) completed by the purchaser. As an alternative to the Agriculture Exemption
Certificate, the purchaser may certify in writing on a copy of the invoice or sales ticket to be retained by the
seller that the work-site utility vehicle will be used only in farming, ranching or aquaculture production.

                              ALL-TERRAIN VEHICLES REMAIN TAXABLE

All-terrain vehicles do not qualify for the “farm machinery and equipment” sales tax exemption. The

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definition of an “all-terrain vehicle” is:

       ‘‘All-terrain vehicle’’ means any motorized nonhighway vehicle 48 inches or less in width, having
       a dry weight of 1,000 pounds or less, traveling on three or more low-pressure tires, having a
       seat designed to be straddled by the operator. As used in this subsection, low-pressure tire
       means any pneumatic tire six inches or more in width, designed for use on wheels with rim
       diameter of 12 inches or less, and utilizing an operating pressure of 10 pounds per square inch
       or less as recommended by the vehicle manufacturer. (Emphasis added).

Date Composed: 06/06/2006 Date Modified: 06/06/2006

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