Are sales of nutrition supplements exempt from Kansas sales tax?

Plain-English summary

A company that sells nutrition 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." Nutrition supplements are tangible personal property sold at retail.

No exemption applies. The Department advised that "the Kansas sales and use tax law does not provide an exemption from sales tax on the sale of nutrition supplements." Accordingly, "your company would be obligated to collect and remit the appropriate Kansas sales/use tax(es) on said sales."

Rate. The ruling noted that "[t]he sales/use tax rate in the state of Kansas is 4.9%," and that "[i]n some instances, local sales tax(es) may also apply." (That 4.9% was the state rate at the time of the 1999 ruling; the state rate has since changed, so check the current combined state and local rate for the point of sale.)

Bottom line: nutrition supplements are ordinary taxable tangible personal property in Kansas. There is no special exemption, so the seller must collect and remit state (and any applicable local) sales tax on these sales.

What this means for you

Retailers of nutrition and dietary supplements

Collect Kansas sales tax on your supplement sales — there is no exemption for them. Register with the Department if you have not already, and remit the state tax plus any applicable local taxes based on where the sale is sourced.

Health, fitness, and wellness businesses

Selling supplements alongside services does not make the supplements exempt. The supplement sales are taxable tangible personal property, separate from any nontaxable services you may provide.

Checking the current rate

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

Common questions

Q: Are nutrition 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: Who has to collect the tax?
A: The seller. The Department ruled the company must collect and remit the appropriate Kansas sales/use tax on its supplement sales.

Q: What is the tax rate?
A: The ruling cited a 4.9% state rate as of 1999, with local taxes possibly applying. Because rates change, 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 nutrition supplement sales, for which no exemption exists.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-225

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

October 11, 1999

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Dear Ms. TTTTT:

We wish to acknowledge receipt of your letter dated September 30, 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 nutrition supplements, such as “XXXXXXX". 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%. In some instances, local sales tax(es) may also apply.

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 affects 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: 10/19/1999 Date Modified: 10/11/2001

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