When are Kansas sellers relieved of liability for wrong tax charged because of an error in the state's taxability matrix?

Plain-English summary

Kansas Notice 15-13 (originally dated July 10, 2015, revised September 14, 2015, and replacing Notice 14-01) states the Department's policy on taxability-matrix liability relief under K.S.A. 2014 Supp. 79-3677(c).

The statute. Sellers and certified service providers (CSPs) are relieved from liability to the state or any local taxing jurisdiction for having charged and collected the wrong state or local sales or use tax when they relied on erroneous data the secretary provided in the taxability matrix (part of the Streamlined Sales and Use Tax Agreement).

Two sections of the matrix. The Department will relieve sellers and CSPs of tax, interest, and penalties for incorrect tax resulting from erroneous data in both:

• the Library of Definitions section, and
• the Tax Administration Practices section.

The 30-day rule on amendments. If the Department amends an existing provision of either section, relief continues until the first day of the calendar month that is at least 30 days after notice of the change is submitted to the governing board of the Streamlined Sales and Use Tax Agreement -- provided the seller or CSP relied on the prior version of the matrix.

What this means for you

Retailers and certified service providers

• If you charged the wrong Kansas state or local tax because you relied on erroneous data in the state's taxability matrix, you are relieved of the tax, interest, and penalties.
• When a matrix provision is amended, you keep relief while relying on the old version until at least 30 days after the change is submitted to the Streamlined governing board.

Common questions

What triggers relief? Reliance on erroneous data in the Kansas taxability matrix (Library of Definitions or Tax Administration Practices sections).

What is covered? Tax, interest, and penalties for the incorrectly charged state or local sales or use tax.

How long does relief last after a change? Until the first day of the month at least 30 days after notice of the change is submitted to the Streamlined Sales and Use Tax Agreement governing board.

Does this replace an earlier notice? Yes -- it replaces Notice 14-01.

Citations and references

• K.S.A. 2014 Supp. 79-3677(c) -- relieves sellers and certified service providers of liability for incorrect state or local sales/use tax charged in reliance on erroneous data in the taxability matrix.
• Relief applies to both the Library of Definitions and Tax Administration Practices sections, subject to the 30-day rule after a change is submitted to the Streamlined Sales and Use Tax Agreement governing board. Replaces Notice 14-01.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 15-13

Original ruling text

KANSAS DEPARTMENT OF REVENUE
OFFICE OF POLICY & RESEARCH

                                  NOTICE 15-13
                           (Revised September 14, 2015)

POLICY FOR LIABILITY RELIEF FROM CHANGES IN TAXABILITY MATRIX
dated July 10, 2015 (replacing Notice 14-01)

Taxability Matrix Liability Relief–K.S.A. 2014 Supp. 79-3677(c) provides:

   Sellers and certified service providers are relieved from liability to this state or any local
   taxing jurisdiction for having charged and collected the incorrect amount of state or local
   sales or use tax resulting from the seller or certified service providers relying on
   erroneous data provided by the secretary in the taxability matrix.

The Department will apply the following policies with respect to the above taxability matrix
liability relief provision, concerning any changes made to the taxability matrix:

The Department will relieve sellers and certified service providers from liability to the State and
its local jurisdictions for tax, interest and penalties for having charged and collected incorrect tax
resulting from erroneous data in the Library of Definitions section of the taxability matrix.

If the Department amends an existing provision of the Library of Definitions section of the
taxability matrix, the Department shall relieve sellers and certified service providers from
liability to the Department and local jurisdictions for tax, interest and penalties for having
charged and collected incorrect tax until the first day of the calendar month that is at least 30
days after notice of a change to the Library of Definitions section of the taxability matrix is
submitted to the governing board of the Streamlined Sales and Use Tax Agreement, provided the
seller or certified service provider relied on the prior version of the taxability matrix in charging
such incorrect tax.

The Department will relieve sellers and certified service providers from liability to the State and
its local jurisdictions for tax, interest and penalties for having charged and collected incorrect tax
resulting from erroneous data in the Tax Administration Practices section of the taxability
matrix.

If the Department amends an existing provision of the Tax Administration Practices section of
the taxability matrix, the Department shall relieve sellers and certified service providers from
liability to the Department and local jurisdictions for tax, interest and penalties for having
charged and collected incorrect tax until the first day of the calendar month that is at least 30
days after notice of a change to the Tax Administration Practices section of the taxability matrix
is submitted to the governing board of the Streamlined Sales and Use Tax Agreement, provided

the seller or certified service provider relied on the prior version of the taxability matrix in
charging such incorrect tax.

Taxpayer Assistance. Additional copies of this Notice, and other department forms or
publications, may be downloaded from our web site, www.ksrevenue.org. If you have questions
about this notice and how it applies, please contact:

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