Is a youth baseball nonprofit exempt from Kansas sales tax on its purchases?

Plain-English summary

A youth baseball nonprofit asked whether it is exempt from Kansas sales tax.

Not exempt. As with other community nonprofits, the Department noted that although such groups do great community work, "not every non-profit organization enjoys an exemption from Kansas sales tax. Yours does not."

What is taxable. "Your organization would be obligated to pay any applicable Kansas sales tax(es) on its purchases of tangible personal property and taxable services, which would include, but not be limited to, sports equipment, uniforms, transportation, lighting, general maintenance, upkeep and improvements to the ball field, park, and playground equipment."

One thing that is not taxable. "Mowing services are not currently subject to sales tax in the state of Kansas."

Bottom line: a youth baseball nonprofit has no general Kansas sales tax exemption and must pay tax on its taxable purchases — equipment, uniforms, transportation, lighting, maintenance, and field/park/playground upkeep and improvements — though mowing services are not currently taxed.

What this means for you

Nonprofit status does not exempt your purchases

Kansas does not grant a blanket sales tax exemption to nonprofits. A youth sports organization pays sales tax on its taxable purchases like any other consumer unless a specific statute exempts it.

Budget tax into your program costs

Plan for sales tax on equipment, uniforms, transportation, lighting, and field, park, and playground maintenance and improvements. These are ordinary taxable purchases for the organization.

Know which services are taxed

Not every service is taxable in Kansas. The Department pointed out that mowing services are not currently subject to sales tax — a useful distinction when budgeting for grounds upkeep versus taxable maintenance work.

Common questions

Q: Is a youth baseball nonprofit exempt from Kansas sales tax?
A: No. "[N]ot every non-profit organization enjoys an exemption from Kansas sales tax. Yours does not."

Q: What purchases are taxable?
A: Taxable purchases include "sports equipment, uniforms, transportation, lighting, general maintenance, upkeep and improvements to the ball field, park, and playground equipment," among others.

Q: Do we pay sales tax on mowing the fields?
A: No. The Department stated that "[m]owing services are not currently subject to sales tax in the state of Kansas."

Citations and references

• The Department applied the general rule that nonprofit status alone does not create a Kansas sales tax exemption and did not cite a specific exemption statute (because none applied to this youth baseball organization).

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-149

Original ruling text

Private Letter Ruling

Body:

Office of Policy and Research

July 8, 1999

TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT

Dear Mr. TTTTT:

We wish to acknowledge receipt of your letter dated June 23, 1999, regarding the application of Kansas Retailers’ Sales tax.

Many organizations, such as your youth baseball organization, perform a great deal of services for their communities with the funds that they raise. However, not every non-profit organization enjoys an exemption from Kansas sales tax. Yours does not.

Your organization would be obligated to pay any applicable Kansas sales tax(es) on its purchases of tangible personal property and taxable services, which would include, but not be limited to, sports equipment, uniforms, transportation, lighting, general maintenance, upkeep and improvements to the ball field, park, and playground equipment. Mowing services are not currently subject to 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, 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: 07/15/1999 Date Modified: 10/11/2001

Table 1

Table 2