Are wheelchairs, scooters, wheelchair lifts, ramps, and handicap-equipped vehicles exempt from Kansas sales tax?

Plain-English summary

A retailer asked how Kansas sales tax applies to a range of mobility products sold to people with disabilities. The answer depends on whether each item is a "prosthetic and orthopedic appliance" under K.S.A. 79-3606(r) — and, critically, whether it becomes a fixture to real property once installed.

The exempt category. K.S.A. 79-3606(r) exempts "all sales of prosthetic and orthopedic appliances prescribed in writing by a person licensed to practice the healing arts, dentistry or optometry." The statute defines those appliances as any apparatus, instrument, device, or equipment used to replace or substitute for a missing body part, to alleviate a malfunction of the body, or to assist a disabled person in leading a normal life by facilitating mobility. It expressly includes accessories attached (or to be attached) to motor vehicles — but expressly excludes motor vehicles themselves and property that, when installed, becomes a fixture to real property.

How the Department applied it:

• Exempt — an electric or manual wheelchair (whether sold or rented), a motorized scooter, and a wheelchair lift that attaches to a vehicle. These fit within the exemption in K.S.A. 79-3606(r).
• Taxable — ramps that will not be attached to the vehicle and that can be installed in the home as a threshold ramp. Once installed, such a ramp becomes a fixture to real property, which the statute excludes, so the appropriate Kansas sales tax(es) apply.
• Taxable — the sale of the handicap motor vehicles themselves. The exemption does not cover the vehicles, only the qualifying accessories and appliances.

What this means for you

Sellers of mobility equipment

Wheelchairs (manual or electric), motorized scooters, and vehicle-mounted wheelchair lifts can be sold or rented exempt as prosthetic/orthopedic appliances under K.S.A. 79-3606(r). Note the statute's requirement that these appliances be prescribed in writing by a licensed healing-arts, dentistry, or optometry practitioner.

Watch the "fixture to real property" line

A ramp that attaches to a vehicle can qualify, but a home threshold ramp that becomes part of the real estate does not — it is taxable. The dividing line the Department drew is whether the item stays personal property attached to a vehicle or becomes a fixture to real property on installation.

Handicap vehicles themselves are taxable

The exemption reaches the accessories and appliances, not the motor vehicle. Selling a handicap-equipped vehicle is a taxable vehicle sale; only the qualifying add-ons fall under K.S.A. 79-3606(r).

Common questions

Q: Are wheelchairs and scooters exempt from Kansas sales tax?
A: In the Department's opinion, yes — an electric or manual wheelchair (sold or rented) and a motorized scooter are exempt prosthetic/orthopedic appliances under K.S.A. 79-3606(r).

Q: Is a wheelchair lift for a vehicle exempt?
A: Yes — a wheelchair lift that attaches to a vehicle comes within the exemption, because the statute includes accessories attached to motor vehicles.

Q: What about a ramp?
A: A ramp not attached to the vehicle that is installed in the home as a threshold ramp is taxable, because once installed it becomes a fixture to real property, which the statute excludes.

Q: Is the handicap-equipped vehicle itself exempt?
A: No. The exemption does not cover the sale of the handicap motor vehicles; only the qualifying appliances and accessories are exempt.

Citations and references

• K.S.A. 79-3606(r) — exempts prosthetic and orthopedic appliances prescribed in writing by a licensed practitioner; includes accessories attached to motor vehicles but excludes motor vehicles and property that becomes a fixture to real property.
• 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-2002-081

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

October 4, 2002

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Dear Mr. TTTTT:

We wish to acknowledge receipt of your letter dated September 24, 2002, regarding the application of Kansas Retailers’ Sales tax.

K.S.A. 79-3606(r) exempts from sales tax: “all sales of prosthetic and orthopedic appliances prescribed in writing by a person licensed to practice the healing arts, dentistry or optometry. For the purposes of this subsection, the term prosthetic and orthopedic appliances means any apparatus, instrument, device, or equipment used to replace or substitute for any missing part of the body; used to alleviate the malfunction of any part of the body; or used to assist any disabled person in leading a normal life by facilitating such person's mobility; such term shall include accessories attached or to be attached to motor vehicles, but such term shall not include motor vehicles or personal property which when installed becomes a fixture to real property. . .”

Please be advised that it is the opinion of this office that the electric or manual wheel chair, whether sold or rented, the motorized scooter and the wheelchair lift that attaches to vehicles would come within the scope of the sales tax exemption in K.S.A. 79-3606(r). However, the ramps that will not be attached to the vehicle and that can be installed in the home as a threshold ramp would be subject to the appropriate Kansas sales tax(es), since the respective ramps, which when installed becomes a fixture to real property. Further, this exemption does not cover the sale of the handicap motor vehicles.

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: 10/09/2002 Date Modified: 10/17/2002

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