Is a dirt scraper designed for use with farm tractors exempt from Kansas sales tax as farm machinery and equipment?

Plain-English summary

A seller asked whether Kansas sales tax applies to a dirt scraper "designed for use with farm tractors."

The exemption. K.S.A. 79-3606(t) exempts "all sales of farm machinery and equipment or aquaculture machinery and equipment, repair and replacement parts therefor and services performed in the repair and maintenance of such equipment." The subsection expressly includes machinery and equipment used in Christmas-tree farming, and it excludes "any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as such terms are defined by K.S.A. 8-126."

The holding. "It is the opinion of this office that the sale of the [] Dirt Scraper, which is designed for use with farm tractors would come within the scope of the sales tax exemption in K.S.A. 79-3606(t), and, therefore be exempt from sales tax in the state of Kansas."

Why it qualifies. A dirt scraper built to be pulled by and operated with a farm tractor is farm machinery and equipment — not one of the excluded on-road vehicle types — so it is exempt.

Bottom line: the dirt scraper is exempt farm equipment. As with other farm-equipment exemption claims in Kansas, the purchaser typically documents the exemption with the appropriate agricultural exemption certificate at the point of sale.

What this means for you

Tractor-drawn implements are exempt farm equipment

Equipment designed to be used with a farm tractor — such as this dirt scraper — is "farm machinery and equipment" under K.S.A. 79-3606(t), and its sale is exempt from Kansas sales tax.

Parts and repair services are exempt too

The same subsection exempts repair and replacement parts for qualifying farm machinery and equipment and the services performed to repair and maintain it — not just the initial sale of the machine.

The exclusions are for on-road vehicles

The exemption does not reach passenger vehicles, trucks, truck tractors, trailers, semitrailers, or pole trailers (other than a farm trailer). A field implement like a dirt scraper is not one of those excluded vehicle types.

Document the exemption at the sale

A qualifying farm-equipment sale is normally supported by the buyer's agricultural exemption certificate. Keep the certificate on file so the exempt treatment is documented if the Department later reviews the sale.

Common questions

Q: Is a dirt scraper made for farm tractors taxable in Kansas?
A: No. The Department ruled it comes within the farm machinery and equipment exemption in K.S.A. 79-3606(t) and is exempt from Kansas sales tax.

Q: Does the exemption cover parts and repairs?
A: Yes. K.S.A. 79-3606(t) exempts repair and replacement parts for qualifying farm machinery and equipment, and the services to repair and maintain it.

Q: What is not covered by this exemption?
A: Passenger vehicles, trucks, truck tractors, trailers, semitrailers, and pole trailers (other than a farm trailer) are excluded. A tractor-drawn dirt scraper is qualifying equipment, not an excluded vehicle.

Citations and references

• K.S.A. 79-3606(t) — exempts all sales of farm machinery and equipment (and aquaculture machinery and equipment), repair and replacement parts, and repair/maintenance services, while excluding specified on-road vehicles other than a farm trailer.
• K.S.A. 8-126 — supplies the vehicle definitions (passenger vehicle, truck, truck tractor, trailer, semitrailer, pole trailer, farm trailer) used to mark the boundary of the exemption.
• K.A.R. 92-19-59 — the regulation authorizing private letter rulings; this ruling was issued under it and binds the Department only as to the requesting taxpayer.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-137

Original ruling text

Private Letter Ruling

Body:

Office of Policy and Research

June 15, 1999

TTTTTTTTTTTT
TTTTTTTTTTTT
TTTTTTTTTTTT

Dear Mr. TTTTTTT:

We wish to acknowledge receipt of your letter dated June 7, 1999, regarding the application of Kansas Retailers’ Sales tax.

K.S.A. 79-3606(t) exempts from sales tax: “all sales of farm machinery and equipment or aquaculture machinery and equipment, repair and replacement parts therefor and services performed in the repair and maintenance of such equipment. For purposes of this subsection the term “farm machinery and equipment or aquaculture machinery and equipment” shall include machinery and equipment used in the operation of Christmas tree farming but shall not include any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as such terms are defined by K.S.A. 8-126 and amendments thereto. . .”

It is the opinion of this office that the sale of the TTTTTT Dirt Scraper, which is designed for use with farm tractors would come within the scope of the sales tax exemption in K.S.A. 79-3606(t), and, therefore be exempt from sales tax in the state of Kansas.

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 effects 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: 07/06/1999 Date Modified: 10/11/2001

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