What Kansas compensating-use-tax discount applied to Colorado retailers after July 1, 2009?

Plain-English summary

Colorado retailers' Kansas compensating-use-tax discount fell to 0% for Form CT-9U returns filed on or after July 1, 2009. Colorado had eliminated its own service fee, and the Kansas-Colorado agreement under K.S.A. 79-3707(c) made the treatment reciprocal.

The 2014 revision also states later rates for other states: Nebraska 2.5% of the first $3,000 timely remitted monthly and Missouri 2% for returns filed on or after January 1, 2015; Oklahoma 1%, capped at $2,500 monthly, for transactions on or after July 1, 2010.

What this means for you

A Colorado retailer could not retain a collection discount on Kansas returns covered by the notice. Other states' rates depended on their own effective dates and timely remittance.

Citations and references

• K.S.A. 79-3707(c)
• Kansas Notices 10-06 and 14-17

Subject

Colorado Retailer Compensating-Tax Discount Reduced to Zero

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 09-08

Original ruling text

Kansas Department of Revenue
Office of Policy & Research

                                   NOTICE 09-08
                             Revised September 17, 2014

                  Kansas Discount Rates for Colorado Retailers

The Colorado Department of Revenue announced that it was reducing to zero (0%) the “service
fee” Colorado businesses retained to offset the cost of collecting, reporting and remitting Colorado
Sales and Compensating Use Tax returns. No service fee will be allowed for Colorado sales and use
tax returns filed on or after July 1, 2009. This ruling applies to Kansas retailers collecting and
reporting Colorado Use tax.

 By Agreement between Colorado and Kansas in effect since 1968 pursuant to K.S.A. 79-3707(c),

the discount rate extended to Colorado retailers who collect and remit the Kansas Retailers’
Compensating Use Tax has been 3 and 1/3 percent (3.33%) of the tax remitted when the remittance
is timely.

Effective for returns (Form CT-9U) filed on or after July 1, 2009 by Colorado retailers the Kansas

“discount rate” is reduced to zero (0%).

The discount rate for retailers in Nebraska (3%) and Missouri (3%) remain in effect for returns filed
prior to January 1, 2015, and for returns filed on or after January 1, 2015, the discount rate for
retailers in Nebraska will reduce to 2.5% of the first $3,000 of Kansas Retailers’ Compensating Use
Tax timely remitted each month, and the discount rate for retailers in Missouri will reduce to 2% of the
Kansas Retailers’ Compensating Use Tax timely remitted. Effective for returns reporting transactions
occurring on or after July 1, 2010, the discount rate for retailers in Oklahoma is 1% of Kansas
Retailers’ Compensating Use Tax collected, with a maximum cap of $2500 per month when the
remittance is timely. See Notices 10-06 and 14-17 for additional information.

                                    Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about income tax, please contact:

                                 Taxpayer Assistance Center
                               Kansas Department of Revenue
                                915 SW Harrison St., 1st Floor
                                  Topeka, KS 66612-1588
                                    Phone: 785-368-8222
                                     Fax: 785-291-3614