Is a company's purchase of reports subject to Kansas sales or use tax, or is there an exemption?

Plain-English summary

A company asked whether its purchases of certain Reports are exempt from Kansas tax. The Department's answer: no exemption applies, so the purchases are taxable.

The imposition. K.S.A. 79-3603(a) imposes sales tax on "the gross receipts received from the sale of tangible personal property at retail within this state." That general rule reaches the sale of the Reports.

No exemption. The Department advised that Kansas sales and use tax law does not provide an exemption for the sale of these Reports. As a result, the company is obligated to pay the appropriate Kansas sales or use tax on the purchases. (Where a Kansas seller doesn't collect sales tax on a taxable purchase, the buyer owes the complementary compensating use tax.)

Rate note. The letter stated the Kansas state rate was 4.9%, due to increase to 5.3% effective July 1, 2002, and that local sales taxes may also apply in some instances. Those 2002-era rate figures are historical — the Kansas state and local rates have changed since then, so confirm the current rate before computing tax.

What this means for you

Buyers of reports and similar deliverables

Absent a specific exemption, a purchase of Reports (as tangible personal property sold at retail) is taxable in Kansas. If your vendor doesn't charge Kansas sales tax, you likely owe use tax on the purchase — don't assume a report is automatically non-taxable.

"No exemption" is itself the answer

Kansas taxes retail sales of tangible personal property unless a specific exemption applies. Here, none does — so the default taxability controls. When evaluating a purchase, look for an enumerated exemption; if there isn't one, expect the sale to be taxed.

Confirm the current rate

The 4.9% → 5.3% figures are from 2002. Use the current Kansas state and applicable local rates for any present-day transaction.

Common questions

Q: Is our purchase of the Reports exempt from Kansas tax?
A: No. The Department advised that Kansas sales and use tax law provides no exemption for the sale of these Reports.

Q: So what do we owe?
A: The appropriate Kansas sales or use tax on the purchases, since the sale of tangible personal property at retail is taxable under K.S.A. 79-3603(a) absent an exemption.

Q: What was the tax rate?
A: The letter cited a 4.9% state rate increasing to 5.3% effective July 1, 2002, with local taxes possibly applying — but those are 2002 figures; confirm the current rate.

Q: Does this ruling apply to my purchases?
A: A Kansas private letter ruling addresses only the requesting taxpayer's facts and cannot be relied on as precedent by others; it reflects the general rule that retail sales of tangible property are taxable unless specifically exempt.

Citations and references

• K.S.A. 79-3603(a) — imposes sales tax on the gross receipts from the sale of tangible personal property at retail within Kansas.
• The Department found no exemption in Kansas sales and use tax law for the sale of the Reports, so the purchases are subject to sales or use tax (state rate cited as 4.9% rising to 5.3% on July 1, 2002, plus possible local tax — historical figures).
• K.A.R. 92-19-59 — the regulation authorizing Kansas private letter rulings.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2002-058

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

June 21, 2002

TTTTTTTTTTT
TTTTTTTTTTT
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TTTTTTTTTTT

Dear Ms. TTTTTT:

We wish to acknowledge receipt of your letter dated June 18, 2002, regarding the application of Kansas Retailers’ Sales tax.

K.S.A. 79-3603(a) imposes a sales tax upon: “The gross receipts received from the sale of tangible personal property at retail within this state. . .”

Please be advised that the Kansas sales and use tax law does not provide an exemption from sales tax on the sale of TTTTTTTTTTTTTT Reports. Therefore, your company would be obligated to pay the appropriate Kansas sales/use tax(es) on said purchases. The sales/use tax rate in the state of Kansas is 4.9%. However, this rate is due to increase to 5.3%, effective July 1, 2002. In some instances, local sales tax(es) may also apply.

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, 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: 06/27/2002 Date Modified: 06/28/2002

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