Does a youth organization qualify for the Kansas 79-3606(ii) sales tax exemption for a comprehensive multidiscipline youth development organization?

Plain-English summary

An organization ("Center") sought recognition as exempt from Kansas retailers' sales tax under K.S.A. 79-3606(ii), which exempts a "comprehensive multidiscipline youth development organization." The Department reviewed the Center's Articles of Incorporation.

It concluded the Center does not meet the 79-3606(ii) criteria. Per the Articles, the organization lacked key components the Department needs to grant the exemption — specifically, it had not demonstrated the "comprehensive" and "multidiscipline" attributes of a youth program. The exemption was therefore denied.

What this means for you

If you seek the 79-3606(ii) youth-development exemption in Kansas, the label isn't enough — your governing documents must show you meet the statutory description.

• The statute is specific. 79-3606(ii) requires a comprehensive, multidiscipline youth development organization — both attributes matter.
• Your Articles are evidence. The Department reviewed the Articles of Incorporation and found the required attributes weren't demonstrated.
• Show breadth of program. To qualify, be prepared to document that your youth program spans multiple disciplines and is comprehensive, not narrow.
• A denial isn't necessarily permanent. It rests on the facts and documents supplied; different or stronger documentation could support a different result.

Common questions

Why was the youth organization denied the exemption?
Its Articles of Incorporation didn't demonstrate the "comprehensive" and "multidiscipline" attributes that K.S.A. 79-3606(ii) requires.

What does 79-3606(ii) require?
That the organization be a comprehensive, multidiscipline youth development organization — a specific description the applicant must satisfy.

What does the Department look at?
Here, the organization's Articles of Incorporation, to see whether the required attributes are present.

Can another youth group 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 how the Department applies 79-3606(ii).

Citations and references

• K.S.A. 79-3606(ii) — exempts a "comprehensive multidiscipline youth development organization"; the Department denied the exemption because the organization's Articles of Incorporation did not demonstrate the required "comprehensive" and "multidiscipline" attributes.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1999-49.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

March 5, 1999

XXXXXXXXXXXX
XXXXXXXXXXXX
XXXXXXXXXXXX

Dear XXXXXXXX:

The purpose of this letter is to respond to your letter dated November 18, 1998.

I have reviewed the Articles of Incorporation of XXXXXXXXXXXXXX ("Center"). In order for an organization to qualify for the exemption as contained in K.S.A. 79-3606(ii), an organization must demonstrate that it is a "comprehensive multidiscipline youth development organization".

It is the opinion of the Kansas Department of Revenue that the Center does not meet the criteria of the exemption from Kansas retailers’ sales tax contained in K.S.A. 79-3606(ii). Per the Articles of Incorporation the organization lacks key components in order for the Department to grant the exemption. Specifically, the areas or attributes of "comprehensive" and "multidiscipline" youth program have not been demonstrated to the Department.

This private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to make an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this private letter ruling.

Sincerely,

Mark D. Ciardullo
Tax Specialist

MDC

Date Composed: 03/09/1999 Date Modified: 10/11/2001

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