Which purchases by a nonprofit domestic-violence shelter are exempt from Kansas sales tax — food, educational materials, or repair materials?

Plain-English summary

A not-for-profit shelter for victims of domestic violence and rape asked which of its purchases are exempt from Kansas sales tax. The Department addressed three categories:

• Food: The Kansas Sales Tax Act provides no exemption for the food products the shelter buys to provide meals at the shelter house. Those purchases are taxable.
• Educational materials: K.S.A. 79-3606(ll) exempts sales of educational materials purchased for distribution to the public at no charge by a nonprofit corporation organized to encourage, foster, and conduct programs for the improvement of public health. If the shelter distributes educational materials on rape and domestic violence to the public at no charge, that exemption applies — so the shelter would not owe Kansas sales tax on those purchases.
• Repair materials: K.S.A. 79-3606(oo) exempts tangible personal property purchased by a community action group or agency exclusively for repairing or weatherizing housing occupied by low-income individuals. The Department found the shelter is not the residence of low-income individuals, so materials purchased to repair the shelter do not qualify — they are taxable.

What this means for you

Being a nonprofit shelter does not make everything you buy tax-exempt in Kansas — each purchase is judged against a specific statutory exemption.

• Food is taxable. There is no Kansas exemption for food a shelter buys to feed residents.
• Free-to-the-public educational materials can be exempt. If you give educational materials on your public-health mission (here, rape and domestic violence) to the public at no charge, K.S.A. 79-3606(ll) can exempt those purchases.
• Building-repair materials are taxable here. The weatherization/repair exemption in 79-3606(oo) is for housing occupied by low-income individuals; the Department concluded a shelter is not such a residence, so repair materials for the shelter don't qualify.

Because exemptions are item-specific, keep documentation showing which purchases meet which exemption's exact terms.

Common questions

Is food a nonprofit shelter buys exempt from Kansas sales tax?
No. The Department said there is no exemption for the food products the shelter purchases to provide meals.

Are the shelter's educational materials exempt?
Yes, if they are distributed to the public at no charge and fit K.S.A. 79-3606(ll) (educational materials furthering public-health programs) — such as materials on rape and domestic violence.

Can the shelter buy repair materials tax-free?
No. The Department ruled the shelter is not the residence of low-income individuals, so the community-action weatherization/repair exemption in K.S.A. 79-3606(oo) doesn't apply; repair materials are taxable.

Does a general nonprofit status exempt all purchases?
No. Kansas grants exemptions item-by-item under specific statutes, not a blanket nonprofit exemption.

Citations and references

• K.S.A. 79-3606(ll) — exempts sales of educational materials purchased for distribution to the public at no charge by a qualifying nonprofit organized to improve public health.
• K.S.A. 79-3606(oo) — exempts tangible personal property purchased by a community action group or agency for the exclusive purpose of repairing or weatherizing housing occupied by low-income individuals.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1998-22.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

February 23, 1998

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RE: TTTTTTTTTTTTTTT

Dear Ms. TTTTTTTT:

We wish to acknowledge receipts of your letter dated December 15, 1997, regarding the application of Kansas Retailers’ Sales tax.

The Kansas Sales Tax Act does not provide an exemption from sales tax for the food products that TTTTT is purchasing, so it may provide meals at the shelter house for victims of domestic violence and rape.

K.S.A. 79-3606(ll) exempts from sales tax: “all sales of educational materials purchased for distribution to the public at no charge by a nonprofit corporation organized for the purpose of encouraging, fostering and conducting programs for the improvement of public health. . .”

If TTTTT distributes to the public at no charge, educational materials wherein the subject matter is rape and domestic violence, the sales tax exemption in K.S.A. 79-3606(ll) would be applicable. Therefore, TTTTT would not be obligated to pay Kansas sales tax on these respective purchases.

K.S.A. 79-3606(oo) exempts from sales tax: “all sales of tangible personal property purchased by a community action group or agency for the exclusive purpose of repairing or weatherizing housing occupied by low income individuals. . .”

Please be advised that it is the opinion of this office that the shelter is not the residence of low income individuals, and for this reason materials purchased to repair said shelter would not qualify for the sales tax exemption in K.S.A. 79-3606(oo).

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: 03/04/1998 Date Modified: 10/10/2001

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