Are dietary and health-care supplements subject to Kansas sales tax?

Plain-English summary

A company that sells dietary and health-care supplements asked whether its sales are subject to Kansas sales tax. The answer is yes.

Kansas imposes sales tax under K.S.A. 79-3603(a) on "the gross receipts received from the sale of tangible personal property at retail within this state." Supplements are tangible personal property, and Kansas law provides no exemption for dietary or health-care supplements. So the company must collect and remit the applicable Kansas sales/use tax on those sales.

The Department noted the Kansas state rate was 5.3% at the time of the ruling, in addition to any applicable local tax. (State and local rates change over time, so check the current combined rate for your location.)

What this means for you

Retailers and sellers of supplements

Charge Kansas sales tax on dietary and health-care supplements. Unlike prescription drugs (which have their own exemption), supplements are ordinary taxable goods — there is no supplement exemption to rely on.

Online and multistate supplement sellers

For Kansas customers, treat supplements as taxable tangible personal property and apply the state rate plus the applicable local rate at the destination.

A note on rates

The 5.3% figure is the state rate as of this 2003 ruling. Kansas's state rate and local add-ons have changed since; confirm the current combined rate rather than relying on the number in the ruling.

Common questions

Q: Are vitamins and supplements taxable in Kansas?
A: Yes. They are tangible personal property taxed under K.S.A. 79-3603(a), and Kansas has no exemption for dietary or health-care supplements.

Q: Don't health-related products get an exemption like drugs do?
A: No. The prescription-drug exemption is separate and narrow; it does not extend to dietary or health-care supplements.

Q: What rate applies?
A: The Kansas state rate plus any applicable local tax. The ruling cited a 5.3% state rate in 2003; verify the current combined rate for the sale's location.

Q: Does this ruling apply to my business?
A: A Kansas private letter ruling addresses only the requesting taxpayer's facts and cannot be relied on as precedent by others, though it reflects the Department's position that supplements are taxable.

Citations and references

• K.S.A. 79-3603(a) — imposes Kansas sales tax on the gross receipts from retail sales of tangible personal property in the state. The Department applied it to conclude supplements are taxable, with no exemption available.
• 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-2003-045

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

October 16, 2003

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Dear Ms. TTTTT:

We wish to acknowledge receipt of your letter dated September 26, 2003, 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 dietary and health care supplements. Therefore, your company would be obligated to collect and remit the appropriate Kansas sales/use tax(es) on said sales. The sales/use tax rate in the state of Kansas is 5.3%. This is in addition to any applicable local tax(s).

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: 10/20/2003 Date Modified: 10/22/2003

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