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

Plain-English summary

A nonprofit support group asked whether it qualifies for an exemption from Kansas sales tax. The Department explained that Kansas grants sales tax exemptions only to specific organizations the Legislature lists. Senate Bill 493 (effective July 1, 1998) is an example — it added exemptions for nonprofit zoos and parent-teacher organizations.

Not every nonprofit enjoys an exemption, and a support group is not on the list, so the Department ruled it does not have a Kansas sales tax exemption. Creating one for support groups would require a change to Kansas statutes through legislative action, so the Department suggested the group contact its elected representative and senator.

What this means for you

If you run a nonprofit support group in Kansas, being nonprofit is not enough — you need a specific statutory exemption.

• No general nonprofit exemption in Kansas. Exemptions are granted to particular, enumerated organizations.
• Support groups aren't on the list. This ruling found no exemption for a support group.
• New exemptions come from the Legislature. SB 493 shows how specific exemptions are added (nonprofit zoos, PTOs); a support-group exemption would take similar action.
• Plan for tax on purchases and taxable sales. Without an exemption, your purchases are taxable and any taxable retail sales must be handled like any retailer's.

Common questions

Is a nonprofit support group exempt from Kansas sales tax?
No. Kansas exempts only specific organizations named in statute, and support groups are not among them.

Why isn't it exempt just for being nonprofit?
Kansas has no general nonprofit exemption; the Department can't grant one administratively.

How could a support group become exempt?
Only through a change to Kansas statutes — legislative action — which is why the Department suggested contacting elected officials.

Can other nonprofits rely on this ruling?
Not directly. A private letter ruling binds the Department only for the requesting taxpayer and stated facts; treat it as guidance on Kansas nonprofit exemptions.

Citations and references

• The ruling explains that not every nonprofit is exempt, cites Senate Bill 493 (effective July 1, 1998, adding exemptions for nonprofit zoos and parent-teacher organizations) as an example of legislatively granted exemptions, and concludes a support group has no exemption absent a statutory change; it does not cite a specific numbered exemption statute for the group.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1999-48.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

February 24, 1999

TTTTTTTTTTTTT
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Dear Ms. TTTTTTT:

We wish to acknowledge receipt of your letter dated February 19, 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: 03/09/1999 Date Modified: 10/11/2001

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