Does a nonprofit child advocate group qualify for a Kansas sales tax exemption?

Plain-English summary

A nonprofit child advocate 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 — for example, Senate Bill 493 (effective July 1, 1998) added exemptions for nonprofit zoos and parent-teacher organizations.

Not every nonprofit enjoys an exemption, and a child advocate group is not on the list. The Department therefore ruled that this organization does not have a Kansas sales tax exemption, and noted that creating one would require a change to Kansas statutes through legislative action (suggesting the group contact its elected representative and senator).

What this means for you

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

• There is no general nonprofit exemption in Kansas. Exemptions are granted to particular, enumerated organizations.
• Child advocate groups are not on the list. This ruling found no exemption for such a group.
• New exemptions come from the Legislature. SB 493 is an example of the Legislature adding specific exemptions (nonprofit zoos, parent-teacher organizations); adding child advocate groups would take similar legislative action.
• Plan for tax on purchases and taxable sales. Without an exemption, your purchases are taxable and any taxable retail sales you make must be handled like any retailer's.

Common questions

Is a nonprofit automatically exempt from Kansas sales tax?
No. Kansas exempts only specific organizations named in statute; a nonprofit not on that list is not exempt.

Why aren't child advocate groups exempt?
Because the Legislature has not enacted an exemption for them. The Department cannot create one administratively.

How could a child advocate group become exempt?
Only through a change to Kansas statutes — that is, 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 about how Kansas approaches 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 child advocate 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-1999-69.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

March 10, 1999

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Dear Ms. TTTTTTT:

We wish to acknowledge receipt of your letter dated March 2, 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 child advocates 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 child advocate 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: 03/29/1999 Date Modified: 10/11/2001

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