Is tangible personal property used to align a vehicle with a trailer, boat, or camper taxable in Kansas, and is there a safety-equipment exemption?

Plain-English summary

The Department was asked about the taxability of safety equipment attached to a motor vehicle — specifically, property used to align a vehicle with a towed trailer, boat, or camper.

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

The ruling. "[T]he sale of the tangible personal property that is sold in Kansas and used to align a vehicle with a trailer, boat or camper would be subject to the appropriate sales tax(es) in the state of Kansas. Additionally, the Kansas Sales Tax Act does not contain an exemption from sales tax for tangible personal property that is considered safety equipment."

Bottom line: the property is taxable tangible personal property when sold at retail, and Kansas offers no special exemption just because an item functions as safety equipment.

What this means for you

Vehicle-alignment equipment is taxable

Tangible personal property sold in Kansas and used to align a vehicle with a trailer, boat, or camper is subject to Kansas sales tax under K.S.A. 79-3603(a).

"Safety equipment" is not an exemption category

The Kansas Sales Tax Act contains no exemption for tangible personal property that is considered safety equipment. Calling an item safety equipment does not make its sale exempt.

The general rule for tangible personal property applies

The tax reaches gross receipts from retail sales of tangible personal property. Absent a specific statutory exemption, these items are taxed like any other goods.

Collect tax unless a valid exemption is provided

A retailer selling this equipment should charge the applicable Kansas sales tax unless the buyer presents a valid exemption that actually applies.

Common questions

Is equipment to hitch or align a trailer, boat, or camper taxable?
Yes. Its retail sale in Kansas is subject to sales tax under K.S.A. 79-3603(a).

Is there an exemption for safety equipment?
No. The Kansas Sales Tax Act contains no exemption for tangible personal property considered safety equipment.

Why is it taxable?
Because it is tangible personal property sold at retail, and the sales tax reaches the gross receipts from such sales.

Does the safety purpose of the item matter?
No. The safety function does not create an exemption; the sale is taxed as tangible personal property.

Citations and references

• K.S.A. 79-3603(a) — imposes sales tax on the gross receipts from the sale of tangible personal property at retail within Kansas; the alignment/safety equipment is taxable under this provision.
• The ruling states in prose that the Kansas Sales Tax Act contains no exemption for tangible personal property considered safety equipment.
• 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 July 27, 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-1998-68

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

July 27, 1998

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Dear Ms. TTTTTT:

We wish to acknowledge receipt of your letter dated May 11, 1998, regarding the application of Kansas Retailers’ Sales tax.

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

Please be advised that the sale of the tangible personal property that is sold in Kansas and used to align a vehicle with a trailer, boat or camper would be subject to the appropriate sales tax(es) in the state of Kansas. Additionally, the Kansas Sales Tax Act does not contain an exemption from sales tax for tangible personal property that is considered safety equipment.

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: 08/04/1998 Date Modified: 10/10/2001

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