Does the Soldiers and Sailors Civil Relief Act exempt a serviceman from Kansas sales tax when titling a car in Kansas?

Plain-English summary

The Director of Revenue told all county treasurers how to handle sales tax on cars bought by servicemembers.

A Department opinion had concluded that the Soldiers and Sailors Civil Relief Act does not grant relief from paying Kansas sales tax on a serviceman's automobile purchase.

Here is how it worked:

• A serviceman may title and register his vehicle in Kansas even if he bought it in another state and is stationed in another state.
• That does not relieve him of Kansas sales tax liability.
• If he gives the county treasurer proof that sales tax was paid in the state where the vehicle was purchased, he gets a credit for that tax.
• If he does not furnish proof, he must pay the applicable Kansas state sales tax — three percent when this notice issued — plus any local sales tax before license tags are issued.

What this means for you

Military status did not make a car purchase tax-free in Kansas. A servicemember titling a vehicle here still owed Kansas sales tax, but Kansas gave credit for sales tax already paid to another state — provided the servicemember could document it. No proof meant paying the Kansas state-and-local tax up front to get tags.

Common questions

Q: Does the Soldiers and Sailors Civil Relief Act exempt a serviceman from Kansas sales tax on a car?
A: No. The Department determined the Act does not grant relief from that tax.

Q: Can a serviceman title an out-of-state-purchased car in Kansas?
A: Yes, even if stationed in another state — but he remains liable for Kansas sales tax.

Q: How does he avoid paying tax twice?
A: By providing the county treasurer proof that sales tax was paid in the state of purchase, which earns a credit against the Kansas tax.

Q: What if he has no proof?
A: He must pay the Kansas state sales tax (three percent when issued) plus any local sales tax before license tags are issued.

Citations and references

• Soldiers and Sailors Civil Relief Act — determined not to grant relief from Kansas sales tax on vehicle purchases by servicemembers.
• Kansas Sales and Compensating Tax Law — governs the serviceman's Kansas sales tax liability and the credit for tax paid to another state.

Subject

Sales Tax on Motor Vehicles Titled in Kansas by Military Personnel

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 72-0301

Original ruling text

Notice
Notice Number: Soldiers & Sailors Civil Relief Act
Tax Type: Kansas Retailers' Sales Tax
Brief Description: Sales Tax on Motor Vehicles Titled in Kansas By Military Personnel
Keywords:
Effective Date: 03/01/1972
Does this document
represent current
KDOR policy?
Expiration Date: 03/01/1972

Body:
March 1, 1972

To: All County Treasurers

From : James T. McDonald
DIRECTOR OF REVENUE

Re: Soldiers and Sailors Civil
Relief Act — Payment of Sales
Tax on Automobile Purchases

A recent opinion of the Department of Revenue relative to the
"Soldiers and Sailors Civil Relief Act" state that this Act
does not grant relief from the payment of sales tax on the
purchase of automobiles by servicemen

Under the Kansas Sale and Compensating Tax Law a serviceman
may title and register his motor vehicle in Kansas even though
it was purchased in another state and the serviceman is stationed
in another state. This, however, does not relieve the serviceman
from Kansas sales tax liability. The serviceman must be supply the
Kansas County Treasurer with proof that sales tax was paid in the
state where the vehicle was purchased before credit will be allowed
for sales tax paid to another state. If proof is not furnished.
The serviceman will have to pay the appropriate three per cent [3%]*
Kansas state sales tax and the local sales tax, if applicable,
before license tags will be issued.

• Effective 6/1/92 the state sales tax rate changed to 4.9%.

Sincerely yours,

James T. McDonald
Director of Revenue

Date Composed: 10/06/1997 Date Modified: 04/07/2006

                                                  Return to KSA Listing