Are sales of nutrition supplements taxable in Kansas?

Plain-English summary

A company asked whether its sales of nutrition supplements are subject to Kansas sales tax.

The general tax. The Department quoted K.S.A. 79-3603(a), which imposes sales tax on "[t]he gross receipts received from the sale of tangible personal property at retail within this state."

No exemption for nutrition supplements. "[T]he Kansas sales and use tax law does not provide an exemption from sales tax on the sale of nutrition supplements. Therefore, your company would be obligated to collect and remit the appropriate Kansas sales/use tax(es) on said sales."

Rate. The Department noted the "sales/use tax rate in the state of Kansas is 4.9%," and that "[i]n some instances, local sales tax(es) may also apply."

Bottom line: nutrition supplements are ordinary taxable tangible personal property in Kansas. There is no special exemption, so the seller must collect and remit Kansas sales tax (state plus any applicable local tax) on those sales.

What this means for you

Nutrition supplements are taxed like other tangible goods

Kansas taxes retail sales of tangible personal property, and no exemption carves out nutrition supplements. A seller should treat them as fully taxable.

The seller must register, collect, and remit

Because the sales are taxable, the company is obligated to collect the appropriate Kansas sales/use tax from its customers and remit it to the Department.

Apply the state rate plus any local tax

The ruling states the Kansas state rate as 4.9% (the rate in effect in 1998) and warns that local sales taxes may also apply depending on the location of the sale. Sellers should confirm the current combined state and local rate for each sale.

Don't assume a "health" or "food" exemption applies

Some buyers assume supplements are exempt like certain foods or medicines. The Department squarely held there is no Kansas exemption for nutrition supplements.

Common questions

Are nutrition supplements taxable in Kansas?
Yes. The Department ruled there is no exemption for nutrition supplements, so they are subject to Kansas sales/use tax.

What tax rate applies?
The ruling cites the Kansas state rate of 4.9% (as of 1998), plus any applicable local sales taxes. Confirm the current combined rate for the location of the sale.

Do supplements qualify as exempt food or medicine?
No. The ruling holds that Kansas law provides no exemption for the sale of nutrition supplements.

Which statute imposes the tax?
K.S.A. 79-3603(a), which taxes gross receipts from retail sales of tangible personal property in Kansas.

Citations and references

• K.S.A. 79-3603(a) — imposes Kansas sales tax on the gross receipts from the retail sale of tangible personal property; the Department applied it to nutrition supplements, for which no exemption exists.
• The ruling states the Kansas state rate was 4.9% at the time and that local sales taxes may also apply.
• K.A.R. 92-19-59 — authorizes Kansas private letter rulings; this ruling binds the Department only as to the requesting taxpayer and the facts presented.
• Issued September 10, 1998 by Thomas P. Browne, Jr., Tax Specialist, Kansas Department of Revenue.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1998-127

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

September 10, 1998

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Dear Ms. TTTTT:

We wish to acknowledge receipt of your letter dated August 25, 1998, regarding the application of Kansas Retailers’ Sales tax.

K.S.A. 79-3603(a) imposes a sales tax upon: “The gross receipts received from the sale of tangible personal property at retail within this state. . .”

Please be advised that the Kansas sales and use tax law does not provide an exemption from sales tax on the sale of nutrition supplements. Therefore, your company would be obligated to collect and remit the appropriate Kansas sales/use tax(es) on said sales. The sales/use tax rate in the state of Kansas is 4.9%. In some instances, local sales tax(es) may also apply.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked in the future by the operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially affects this private letter ruling. If I may be of further assistance, please contact me at your earliest convenience at (785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

TPB

Date Composed: 09/14/1998 Date Modified: 10/10/2001

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