Does a convention and tourism committee that certifies a tax levy to a county qualify as an exempt political subdivision in Kansas?

Plain-English summary

An organization asked whether a convention and tourism committee "would qualify as a political subdivision, and therefore, be extended a sales tax exemption."

The definition. K.S.A. 79-3602(n) defines a political subdivision as "any municipality, agency or subdivision of the state which is, or shall hereafter be, authorized to levy taxes upon tangible personal property within the state or which certifies a levy to a municipality, agency or subdivision of the state which is, or shall hereafter be, authorized to levy taxes upon tangible property within the state." It also includes "any public building commission, housing, airport, port, metropolitan transit or similar authority established pursuant to law." The key alternative here is the entity that certifies a levy to a taxing jurisdiction.

The holding. "[I]t is the opinion of this office that the convention and tourism committee . . . is a political subdivision, since the committee certifies a levy to [ ] County, pursuant to K.S.A. 17-1330." As a political subdivision, "it would be appropriate for the [committee] to supply its vendors with a copy of the enclosed exemption certificate" — i.e., it can make exempt purchases.

A second point — cemetery plots. The Department added, "the sale of cemetery plots would not be subject to sales tax in the state of Kansas."

Bottom line: because the convention and tourism committee certifies a tax levy to the county (under K.S.A. 17-1330), it fits the "certifies a levy" branch of the political-subdivision definition in K.S.A. 79-3602(n) and can buy exempt using an exemption certificate. Separately, cemetery-plot sales are not subject to Kansas sales tax.

What this means for you

Convention, tourism, and similar local bodies

If your entity certifies a tax levy to a county or other Kansas taxing jurisdiction, you may qualify as a political subdivision under K.S.A. 79-3602(n) and be able to purchase exempt. Provide vendors an exemption certificate to claim the exemption.

Look at the "certifies a levy" branch

An entity need not levy taxes directly to be a political subdivision — certifying a levy to a jurisdiction that does is enough. Identify the statutory authority (here, K.S.A. 17-1330) under which your body certifies its levy.

Cemetery-plot sales

The ruling separately confirms that selling cemetery plots is not subject to Kansas sales tax — useful for cemetery operators and the local bodies that run them.

Common questions

Q: Is a convention and tourism committee a political subdivision in Kansas?
A: Yes, on these facts. Because "the committee certifies a levy to [ ] County, pursuant to K.S.A. 17-1330," the Department found it "is a political subdivision" under K.S.A. 79-3602(n).

Q: How does it make exempt purchases?
A: By supplying its vendors "a copy of the enclosed exemption certificate," as a political subdivision entitled to the sales tax exemption.

Q: Are cemetery plots taxable in Kansas?
A: No. The Department stated that "the sale of cemetery plots would not be subject to sales tax in the state of Kansas."

Citations and references

• K.S.A. 79-3602(n) — defines "political subdivision," including an entity that certifies a levy to a taxing municipality, agency, or subdivision; the basis for the committee's exempt status.
• K.S.A. 17-1330 — the authority under which the convention and tourism committee certifies its levy to the county, satisfying the "certifies a levy" branch of the definition.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-175

Original ruling text

Private Letter Ruling

Body:

Office of Policy and Research

August 9, 1999

TTTTTTTTTTTT
TTTTTTTTTTTT
TTTTTTTTTTTT

RE: TTTTTTTTTTTTTTTTTTTT

Dear TTTTTTTT:

We wish to acknowledge receipt of your letter dated June 21, 1998, wherein you have inquired as to whether or not the TTTTTTTTTTTTTTTTTTTTTTTTT, would qualify as a political subdivision, and therefore, be extended a sales tax exemption.

K.S.A. 79-3602(n) defines a political subdivision as: “any municipality, agency or subdivision of the state which is, or shall hereafter be, authorized to levy taxes upon tangible personal property within the state or which certifies a levy to a municipality, agency or subdivision of the state which is, or shall hereafter be, authorized to levy taxes upon tangible property within the state. Such term also shall include any public building commission, housing, airport, port, metropolitan transit or similar authority established pursuant to law.”

Please be advised that the it is the opinion of this office that the convention and tourism committee established by the TTTTTTTTTTTTTTTTTTTTTTTTT, is a political subdivision, since the committee certifies a levy to TTTTTT County, pursuant to K.S.A. 17-1330. Therefore, it would be appropriate for the TTTTTTTTTTTTTTTTTTTTTTTTT to supply its vendors with a copy of the enclosed exemption certificate.

In closing, the sale of cemetery plots would not be subject to sales tax in the state of Kansas. 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

Enc

Date Composed: 08/19/1999 Date Modified: 10/11/2001

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