Are sales of dietary and health care supplements exempt from Kansas sales tax?

Plain-English summary

A company selling "dietary and health care supplements" asked whether those sales are exempt from Kansas sales tax. The Department said they are not.

The general rule. Kansas imposes sales tax under K.S.A. 79-3603(a) upon "[t]he gross receipts received from the sale of tangible personal property at retail within this state." Dietary and health care supplements are tangible personal property sold at retail.

No exemption applies. "[T]he Kansas sales and use tax law does not provide an exemption from sales tax on the sale of dietary and health care supplements." Accordingly, the company "would be obligated to collect and remit the appropriate Kansas sales/use tax(es) on said sales."

Rate and registration. The ruling stated the state "sales/use tax rate in the state of Kansas is 4.9%," and the Department enclosed "a Kansas Department of Revenue Business Tax Application" so the seller could register. (The 4.9% figure was the state rate in 1999; the state rate has since changed, so use the current combined state and local rate for the sale location.)

Bottom line: dietary and health care supplements are ordinary taxable tangible personal property in Kansas. With no exemption, the seller must register, collect, and remit sales tax on the sales.

What this means for you

Retailers of dietary and health supplements

Collect Kansas sales tax on your supplement sales — there is no exemption. If you are not already registered, file a Business Tax Application with the Department and remit the state tax plus any applicable local taxes.

Health, wellness, and direct-sales businesses

Selling supplements through stores, clinics, catalogs, or online does not change the result: they are taxable tangible personal property. Build sales tax collection into your pricing and reporting.

Checking the current rate

The ruling's 4.9% figure was the 1999 state rate. Rates change and local taxes vary by location, so apply the current combined state and local rate rather than the rate quoted in an older ruling.

Common questions

Q: Are dietary and health care supplements taxable in Kansas?
A: Yes. They are tangible personal property with no exemption, so sales are subject to Kansas sales tax under K.S.A. 79-3603(a).

Q: What does the seller need to do?
A: Register with the Department (the ruling enclosed a Business Tax Application) and collect and remit the appropriate Kansas sales/use tax on the supplement sales.

Q: What is the tax rate?
A: The ruling cited a 4.9% state rate as of 1999. Because rates change and local taxes vary, use the current combined state and local rate for the sale location.

Citations and references

• K.S.A. 79-3603(a) — imposes Kansas sales tax on the gross receipts from retail sales of tangible personal property; the basis for taxing dietary and health care supplement sales, for which no exemption exists.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-210

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

September 22, 1999

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Dear Ms. TTTTTT:

We wish to acknowledge receipt of your letter dated September 9, 1999, regarding the application of Kansas Retailers’ Sales tax.

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

Please be advised that the Kansas sales and use tax law does not provide an exemption from sales tax on the sale of dietary and health care supplements. Therefore, your company would be obligated to collect and remit the appropriate Kansas sales/use tax(es) on said sales. The sales/use tax rate in the state of Kansas is 4.9%.

For your convenience, I have enclosed a Kansas Department of Revenue Business Tax Application, along with the applicable instructions.

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

Enc

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

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