Is food a church buys for Vacation Bible School or a church-sponsored religious education event exempt from Kansas sales tax?

Plain-English summary

A church representative asked, on behalf of a member congregation, "whether food purchased for use by children in Vacation Bible School or food purchased for consumption at an education and training event sponsored by the church for furtherance of religious education of members would be exempt from Kansas sales tax." The requester acknowledged "that food purchased for personal use of ministers, priests, etc. is not exempt."

The statutes. Kansas sales tax is imposed by K.S.A. 79-3603, whose subsection (a) taxes "[t]he gross receipts received from the sale of tangible personal property at retail within this state." The exemption comes from K.S.A. 79-3606(aaa), which exempts "all sales of tangible personal property and services purchased by a religious organization which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, and used exclusively for religious purposes."

The holding. "Based on the statute we believe food purchased with a church check, prepared for service at a church religious function, and consumed as part of that function is exempt from sales tax." That "would include food purchased for consumption at an education and training event sponsored by the church for furtherance of religious education of members" and "food purchased for use by children in Vacation Bible School."

The limit. The requester's own acknowledgment stands: food purchased for the personal use of ministers, priests, and the like is not exempt. The exemption is for property used exclusively for religious purposes. The Department enclosed Notice 98-05, "Sales Taxation of Purchases by Religious Organizations."

Bottom line: when a 501(c)(3) church buys food (on a church check), prepares it, and serves it as part of a church religious function — including Vacation Bible School and church-sponsored religious education events — the purchase is exempt under K.S.A. 79-3606(aaa). Personal-use purchases for clergy are not.

What this means for you

Buy with church funds, for a church religious function

The exemption tracked the facts: food "purchased with a church check, prepared for service at a church religious function, and consumed as part of that function." Purchases made and paid by the religious organization for a genuine religious function are the ones that qualify.

"Exclusively for religious purposes" is the test

K.S.A. 79-3606(aaa) exempts property "used exclusively for religious purposes." Vacation Bible School and religious education/training events fit; personal purchases for ministers or priests do not, as the requester recognized.

Get and keep the right documentation

Use your religious-organization exemption certificate when buying, and keep records tying the purchase to the religious function. The Department's Notice 98-05 explains how purchases by religious organizations are treated — a useful reference.

Common questions

Q: Is food for Vacation Bible School exempt from Kansas sales tax?
A: Yes, when a 501(c)(3) church buys it (with a church check), prepares it, and serves it as part of the religious function — it is exempt under K.S.A. 79-3606(aaa).

Q: What about food for a church education and training event?
A: Also exempt, where the event is "sponsored by the church for furtherance of religious education of members" and the food is served as part of that function.

Q: Is food bought for a minister's personal use exempt?
A: No. The exemption is for property used exclusively for religious purposes; food for the personal use of ministers, priests, etc., is not exempt.

Citations and references

• K.S.A. 79-3603 — imposes the Kansas retailers' sales tax; subsection (a) taxes gross receipts from retail sales of tangible personal property, including food.
• K.S.A. 79-3606(aaa) — exempts sales of tangible personal property and services purchased by a 501(c)(3) religious organization and used exclusively for religious purposes; the basis for exempting the church function food.
• Notice 98-05 ("Sales Taxation of Purchases by Religious Organizations") — the Department's guidance on religious-organization purchases, enclosed with the ruling.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-165

Original ruling text

Private Letter Ruling

Body:

Office of Policy and Research

July 29, 1999

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Re: Kansas Sales Tax

Dear XXXXX:

Your correspondence of April 7, 1999, has been referred to my attention. Thank you for your inquiry, and please accept my apologies for the long delay in responding.

Your letter indicates you have been asked by a member congregation whether food purchased for use by children in Vacation Bible School or food purchased for consumption at an education and training event sponsored by the church for furtherance of religious education of members would be exempt from Kansas sales tax. You acknowledge that food purchased for personal use of ministers, priests, etc. is not exempt.

The Kansas sales tax is imposed by K.S.A. 79-3603. Subsection (a) of the statute imposes sales tax on food by providing for the imposition of sales tax on:

(a) The gross receipts received from the sale of tangible personal property at retail within this state;

Exemptions from sales tax are provided by K.S.A. 79-3606. Subsection (aaa) of the statute provides an exemption for:

(aaa) all sales of tangible personal property and services purchased by a religious organization which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, and used exclusively for religious purposes;

Based on the statute we believe food purchased with a church check, prepared for service at a church religious function, and consumed as part of that function is exempt from sales tax. In the context of your letter, this would include food purchased for consumption at an education and training event sponsored by the church for furtherance of religious education of members. It would also include food purchased for use by children in Vacation Bible School.

For your information, I have enclosed a copy of our Notice 98-05, Sales Taxation of Purchases by Religious Organizations. It may answer additional questions for you.

I trust this information is of assistance. If I can be of further service, please feel free to contact me.

Sincerely,

Jim Weisgerber
Attorney
Tax Specialist

JW:jw

Enclosure: Notice 98-05

Date Composed: 08/04/1999 Date Modified: 10/11/2001

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