Does a nonprofit support group qualify for a Kansas sales tax exemption?

Plain-English summary

A non-profit support group asked whether it qualifies for a Kansas sales tax exemption. The Department said no.

It explained that Governor Bill Graves signed Senate Bill 493 into law, effective July 1, 1998, adding several sales tax exemptions for particular kinds of organizations — including non-profit zoos and parent-teacher organizations. But the Department stressed the general principle: not every non-profit organization enjoys an exemption from Kansas sales tax, and this support group is not one of the exempt organizations.

Because Kansas exemptions are granted organization-by-organization by statute, an exemption for support groups like this one would require a change to the Kansas statutes through legislative action. The Department suggested the group contact its elected Kansas representative and senator.

This is the same principle the Department applied in companion rulings the same era — see P-1999-48 (another support group) and P-1999-69 (a child-advocate group) — each denied for lack of a specific statutory exemption.

What this means for you

If you run a nonprofit in Kansas, don't assume nonprofit status alone exempts you from sales tax.

• There is no general nonprofit exemption. Kansas exempts specific, named categories of organizations — not nonprofits as a class.
• Check the exemption list. SB 493 added exemptions for groups like non-profit zoos and parent-teacher organizations; unless your organization fits a listed category, you are not exempt.
• A new exemption comes from the Legislature. If your type of organization isn't covered, only a statutory change can add it — the Department cannot create one by ruling.
• You can advocate. The Department itself pointed the group to its elected state representative and senator to seek a legislative exemption.

Common questions

Is a nonprofit support group exempt from Kansas sales tax?
No. Not every non-profit organization is exempt, and a support group is not among the organizations the Legislature has exempted.

Didn't Senate Bill 493 add new exemptions?
Yes — effective July 1, 1998, SB 493 added exemptions for certain organizations, such as non-profit zoos and parent-teacher organizations. But it did not exempt support groups.

How could this group become exempt?
Only through a change to the Kansas statutes by legislative action. The Department suggested contacting the group's elected Kansas representative and senator.

Do other nonprofits get the same answer?
Often, yes. In companion rulings the Department denied exemptions to another support group (P-1999-48) and a child-advocate organization (P-1999-69) on the same basis — no specific statutory exemption applied.

Citations and references

• Senate Bill 493 (effective July 1, 1998) — added several Kansas sales tax exemptions for particular organizations, including non-profit zoos and parent-teacher organizations; the Department noted that not every non-profit qualifies and that a support group is not among the exempt organizations, so a new exemption would require legislative action.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1999-28.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

February 18, 1999

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Dear Ms. TTTTTTT:

We wish to acknowledge receipt of your letter dated February 8, 1999, regarding the application of Kansas Retailers’ Sales tax.

Governor Bill Graves signed Senate Bill 493 into law, which became effective July 1, 1998. It contained several sales tax exemptions to deserving organizations, including non-profit zoos and parent-teacher organizations.

Many organizations, such as your support group, 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.

An exemption for support groups, such as yours would require a change to Kansas statutes through legislative action. Therefore, you may also wish to contact your elected Kansas representative and senator.

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

Date Composed: 03/01/1999 Date Modified: 10/11/2001

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