How should a corporation document the Kansas sales-tax exception when vehicles or trailers transfer with all of its assets to another corporation?

Plain-English summary

A correspondent already understood that K.S.A. 79-3603(o)(2) provided an exception for motor vehicles or trailers transferred from one corporation to another when all of the transferor corporation's assets were transferred. The question was how to document the exception during title transfer.

The Department instructed the parties to complete the Kansas Designated or Generic Exemption Certificate, Form ST-28, and present it to the county treasurer instead of paying sales or use tax.

The certificate should cite K.S.A. 79-3603(o)(2) and the parallel regulation, K.A.R. 92-19-30(g)(2). Publication KS-1520 contained the form and instructions.

What this means for you

Corporations transferring all assets

Prepare the Kansas exemption certificate before taking vehicle or trailer title documents to the county treasurer.

Transaction advisers

The form documents the exception; it does not relax the requirement that all assets of the transferor corporation move to the recipient.

County-title filers

Present the completed Form ST-28 in place of tax payment and retain supporting transaction records.

Common questions

Q: Which form did the Department require?
A: The Designated or Generic Exemption Certificate, Form ST-28.

Q: Where was it presented?
A: To the county treasurer when title transferred.

Q: Which authorities supported the exception?
A: K.S.A. 79-3603(o)(2) and K.A.R. 92-19-30(g)(2).

Citations and references

• K.S.A. 79-3603(o)(2) — all-assets corporate transfer of motor vehicles or trailers
• K.A.R. 92-19-30(g)(2) — regulatory counterpart
• Form ST-28 in Publication KS-1520 — documentation identified by the Department

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: O-2001-017

Original ruling text

Opinion Letter

Body:

Office of Policy & Research

April 24, 2001

XXXX
XXXX
XXXX

RE: You e-mail of April 19, 2001

Dear XXXX:

Thank you for your recent e-mail. You note that I advised you that the exception in K.S.A. 79-3603(o)(2) effectively provides an exemption for “the transfer of motor vehicles or trailers by one corporation to another when all of the assets of such corporation are transferred to such other corporation.” This statutory exception is mirrored in K.A.R. 92-19-30(g)(2).

You ask how this exception can be documented when title is transferred at the county treasurer’s office. This is done by completing a Designated or Generic Exemption Certificate (Form ST-28), and presenting the completed form to the country treasurer in lieu of paying the sales or use tax. The form is available on our web site, www.ink.org/public/kdor/ . Simply enter the site, access “2000 Forms,” and then access “Sales and Compensating Use Tax.” Next, scroll down to Kansas Sales Tax Exemption Certificates and open “KS-1520.” Once you have opened that document, you can locate Form ST-28, which is listed alphabetically as the “Designated or Generic Exemption Certificate.” Open this form and copy it. It explains how it should be completed. The statutes that you should site in the form are set out above in this letter.

I hope that I have answered all of your questions. If not, please e-mail me or call me at (785) 296-3081.

Sincerely,

Thomas E. Hatten

Attorney/Policy & Research

Date Composed: 05/02/2001 Date Modified: 10/10/2001

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