Is a nonprofit genealogical society exempt from Kansas sales tax?

Plain-English summary

A nonprofit genealogical society asked whether it qualifies for a Kansas sales-tax exemption. The Department said it does not.

Kansas exemptions are statute-specific. The Department walked through the kinds of organizations the Legislature has exempted. Under K.S.A. 79-3602(s), the 1998 Legislature defined an "educational institution" as a nonprofit school, college, or university offering courses above the twelfth grade and meeting statutory requirements - and extended that to nonprofit endowment associations and foundations supporting an educational institution, nonprofit entities holding intercollegiate sporting-event receipts for a school's athletic programs, nonprofit research organizations serving an educational institution, and groups of educational institutions "such as the NCAA." Educational institutions can also obtain a project exemption for building work (other than dormitories).

Senate Bill 493 added more exemptions - but not this one. The Department noted that 1998 Senate Bill 493 (effective July 1, 1998) "contained several sales tax exemptions to deserving organizations, including non-profit zoos and parent-teacher organizations." But the list is limited to the organizations the Legislature chose.

A genealogical society is not on the list. The Department was candid: "not every non-profit organization enjoys an exemption from Kansas sales tax. Yours does not." Although such societies do valuable community work, no statute exempts them.

The only path is the Legislature. "An exemption for genealogical societies, such as yours would require a change to Kansas statutes through legislative action," and the Department suggested the society "contact your elected Kansas representative and senator."

Bottom line: a nonprofit genealogical society is not exempt from Kansas sales tax; unless the Legislature enacts an exemption, it must pay tax like any other buyer.

What this means for you

Nonprofits that aren't schools, zoos, or PTOs

Doing charitable or community work does not by itself make a Kansas nonprofit sales-tax exempt. Kansas grants exemptions only to the specific categories the Legislature has enumerated - genealogical societies are not among them.

Check whether you fit an enumerated category

Confirm whether your organization qualifies as an educational institution (or its endowment/research affiliate) under K.S.A. 79-3602(s), or one of the other enumerated exemptions (e.g., nonprofit zoos, parent-teacher organizations). If not, you are not exempt.

If there's no exemption, the fix is legislative

Where no statute covers your organization, the Department cannot grant an exemption administratively. Obtaining one requires the Legislature to enact an exempting statute - so lobbying your elected representatives is the route.

Common questions

Q: Is a nonprofit genealogical society exempt from Kansas sales tax?
A: No. The Department ruled it is not exempt; no Kansas statute covers genealogical societies.

Q: Which nonprofits are exempt?
A: Only enumerated ones - for example, educational institutions (and their endowment/athletic/research affiliates) under K.S.A. 79-3602(s), and organizations added by SB 493 such as nonprofit zoos and parent-teacher organizations.

Q: How could a genealogical society become exempt?
A: Only through legislative action amending the Kansas statutes; the Department suggested contacting elected state representatives and senators.

Citations and references

• K.S.A. 79-3602(s) - the 1998 Legislature's definition of "educational institution" (a nonprofit school, college, or university above the twelfth grade meeting statutory requirements), extended to nonprofit endowment associations/foundations, intercollegiate-athletic receipt entities, research organizations serving an educational institution, and groups of educational institutions such as the NCAA; educational institutions may also obtain a project exemption for building work other than dormitories. The Department noted that 1998 Senate Bill 493 added exemptions for organizations such as nonprofit zoos and parent-teacher organizations, but no statute exempts a genealogical society, which would require legislative action.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2001-024

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

March 23, 2001

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Dear Mr. TTTTTTTTT:

We wish to acknowledge receipt of your letter dated March 22, 2001, regarding the application of Kansas Retailers’ Sales tax.

Kansas law defines an Educational Institution as: Schools and educational institutions are exempt from sales tax. The 1998 legislature defined an "educational institution" to mean a nonprofit school, college, or university that offers educational courses at a level above the twelfth grade and meets certain requirements fixed by the statute. This new definition also includes:

Nonprofit endowment associations and foundations that operate exclusively for the support and benefit of an educational institution;
Nonprofit entities whose principal purpose is to hold receipts from intercollegiate sporting events and to disburse these receipts, as well as grants and gifts, for the sole benefit of the athletic programs of an educational institution;
Nonprofit research organizations whose primary purpose is to pursue scholarly investigation and research for the sole benefit of an educational institution; and
A group of educational institutions that operate exclusively for an educational purpose, such as the NCAA.

Educational institutions are eligible to obtain a project exemption when constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing, or remodeling buildings other than dormitories, and when they make other improvements to property. K.S.A. 79-3602(s).

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 genealogical society, 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 genealogical societies, 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: 03/30/2001 Date Modified: 10/11/2001

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