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Ezel / Tax Rulings / KS
KS Notice 74-0312 Kansas Retailers' Sales Tax 1974-03-12

Are freight and transportation charges on a taxable sale delivered to a Kansas customer part of the taxable selling price?

Short answer: Yes. Since July 1, 1971, both interstate and intrastate freight and transportation charges made in connection with the taxable sale of tangible personal property, for delivery to the ultimate user or consumer in Kansas, are considered part of the selling price and are subject to Kansas retail sales or compensating tax. This 1974 notice was a reminder of that rule.

Apply this to your situation

This page answers the general question as of 1974. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 1974
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Notice providing general public guidance, not a private ruling issued to one taxpayer. The prior-notices index and filename identify it as Notice 74-0312; the body carries no separate printed date line, so the March 12, 1974 date is taken from the notice's own effective-date field. It does not have the force of law, and the treatment described is historical; later statutes or guidance may have changed the result, so confirm current law before relying on it. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

The Department reminded all Kansas retailers of a rule that had been in effect since July 1, 1971: freight and transportation charges are part of the taxable selling price.

Specifically, both interstate and intrastate freight and transportation charges made in connection with a taxable sale of tangible personal property — for delivery to the ultimate user or consumer in Kansas — are treated as part of the selling price and are subject to Kansas retail sales or compensating (use) tax.

What this means for you

If you sold taxable goods and charged freight or transportation in connection with delivery to the final consumer in Kansas, the notice treated that connected charge as part of the taxable selling price. The short notice does not address separately contracted transportation, nontaxable property, or other possible exceptions.

Common questions

Q: Are delivery charges on a taxable sale subject to Kansas sales tax?
A: Yes — since July 1, 1971, freight and transportation charges on a taxable sale of tangible personal property to the ultimate Kansas consumer are part of the selling price and taxable.

Q: Does it matter whether the shipment is interstate or intrastate?
A: No. The notice states the rule applies to both interstate and intrastate freight and transportation charges.

Q: What tax applies?
A: Kansas retail sales tax or compensating (use) tax, depending on the transaction.

Citations and references

  • The notice restates the rule effective July 1, 1971, that freight and transportation charges are part of the taxable selling price; it cites no specific statute section.

Subject

Freight and Transportation Charges

Source

Original ruling text

Notice
Notice Number: Freight & Transportation Charges
Tax Type: Kansas Retailers’ Sales Tax
Brief Description: Freight & Transportation Charges
Keywords:
Effective Date: 03/12/1974

Body:

 TO: All Kansas Sales and Compensating Tax Retailers

 FROM: Kansas Sales and Excise Tax Bureau

 SUBJECT: Freight and Transportation Charges




 This is a reminder that effective July 1, 1971, both interstate and intrastate freight and transportation
 charges, made in connection with the taxable sale of tangible personal property for delivery to the
 ultimate user of consumer in Kansas is considered to be part of the selling price and subject to Retail
 Sales or Compensating Tax.

Date Composed: 10/06/1997 Date Modified: 10/10/2001

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