Kan. Stat. Ann. § 79-3602

A mandatory gratuity charged for food and drinks is part of the consumer’s total cost and therefore part of the taxable selling price.

In Re the Tax Appeal of Newton Country Club Co. · filed 1988-04-14(g)

“Selling price,” in turn, is defined as the “total cost to the consumer.” K.S.A. 79-3602(g). Here, the customer is required to pay a mandatory gratuity as part of the monthly billing for food and drinks. As such, this mandatory gratuity is part of the “total cost to the consumer” and is taxable.

Gross receipts from a contract covering both installation and excavation do not include charges for nontaxable excavation merely because the services share one contract.

In Re Tax Appeal of Bernie's Excavating Co. · filed 1989-05-05(h)

“Gross receipts” means the “total selling price” (K.S.A. 1988 Supp. 79-3602[h]), and “selling price” means the “total cost to the consumer” (K.S.A. 1988 Supp. 79-3602[g]). ... We disagree. ... The fact that taxable services and nontaxable services are governed by the same contract does not mean that the entire contract price should be taxed.

Franchise fees charged to cable subscribers are part of the selling price and gross receipts subject to sales tax.

In Re Tax Appeal of Atchison Cablevision Lp · filed 1997-04-18(g), (h)

This requires inclusion of the franchise fee in that part of the gross receipts subject to the sales tax.

Section 79-3602 excludes separately invoiced reimbursements for the seller’s travel expenses from the selling price when the seller consumed the travel and the expenses were not sold to the customer.

In Re Appeal of Cessna Employees Credit Union · filed 2012-04-06(ll)(1)

And, finally, the statutory definition of “selling price” means die consideration “for which the . . . services are sold,” K.S.A. 2010 Supp. 79-3602(11)(1), and cannot fairly be interpreted to include travel costs subject only to reimbursement but not sold.

Selling price of tangible personal property includes charges for installing that property.

In re Tax Appeal of Lowe's Home Centers · filed 2017-04-14(ll)(1)(E)

Under K.S.A. 2016 Supp. 79-3602(ll)(1)(E), the selling price of the tangible personal property includes any charges related to the installation of the property.

Section 79-3602 includes rental equipment charges and associated taxes passed on to customers in taxable gross receipts when the equipment is needed to perform taxable services.

In re Tax Appeal of Capital Electric Line Builders, Inc. · filed 2022-05-06(o), (ll)(1)(B)-(C)

BOTA's conclusion that the rental charges and tax Capital Electric paid on those charges are includable in Capital Electric's gross receipts is supported by the plain language of the Act. See K.S.A. 79-3602(o); K.S.A. 79-3602(ll)(1)(B)-(C).

Section 79-3602(m) covers film, lithoplates, developer, and related materials used in an integrated printing process as property used in manufacturing.

R. L. Polk & Co. v. Armold · filed 1974-11-02(m)

In our opinion the film, lithoplates, developer and other items are, as a practical matter, used in the actual process of manufacturing as contemplated by K. S. A. 1973 Supp. 79-3602 (m).

Section 79-3602(m) excludes reusable drill bits and casing and cement that remain useful throughout a well’s life from the definition of property consumed in drilling.

In Re the Appeal of Angle · filed 1986-01-30(m)

Because drill bits may be used in the drilling of more than one well, this language appears to speak specifically against the application of the exception in this instance. ... It cannot be said, therefore, that the casing and cement were consumed in the drilling process itself.

A refining catalyst can be immediately consumed under § 79-3602(m) even when it is regenerated and reused during a continuous process that renders it useless within a short time.

In Re Tax Appeal of Derby Refining Co. · filed 1992-08-28(m)

The dissipation of the catalyst is continuous, despite the fact that part of it can be regenerated and reused during the process. ... In accordance with the dictates of Polk, we hold that the evidence in this case shows the catalyst to have been immediately consumed within the purview of the exemption statute.

Preprinted advertising supplements inserted into newspapers are component parts of the newspapers under § 79-3602(l).

In Re the Appeal of K-Mart Corp. · filed 1985-12-06(l)

Advertising, whether run of the press, preprinted supplements provided by the newspaper or preprinted supplements provided by the advertiser, is a component part of the newspaper and we so hold.

Under § 79-3602(p), newsletters, soap, and shampoo are not ingredients or component parts of a health club’s recreational services because they are not necessary or essential to those services.

In Re the Appeals of Genesis Health Clubs · filed 2009-07-02(p)

Moreover, with regard to the specified sublist of purchases of newsletters, soap, and shampoo, we conclude that none of these items is “necessary or essential to” the providing of recreational services. See K.S.A. 79-3602(p). Newsletters are obviously unrelated to the service provided and an entirely secondary benefit of membership. Soap and shampoo may serve a hygenic purpose to Genesis’ members, but we do not view them as an “ingredient or component part” of the recreational services offered.

Electricity powering dedicated HVAC units is consumed in providing telecommunication services when the units are necessary for transmission equipment to operate continuously.

In re Tax Appeal of Southwestern Bell Tel. Co. · filed 2020-01-24(dd)(2)

In other words, under the plain language of K.S.A. 2018 Supp. 79-3602(dd)(2), the electricity used to power these dedicated units is "essential or necessary to" and "used in the actual process of" providing Southwestern Bell's telecommunication services.

A finance company that regularly sells repossessed collateral to consumers is a retailer under this section.

Personal Thrift Plan of Wichita, Inc. v. State · filed 1981-06-10(d)

We have determined that plaintiff is a retailer within the meaning of the act and, accordingly, had a duty to collect the taxes from the purchasers.

Section 79-3602(d)'s definition of retailer does not include an assignee of the retailer merely because it purchased installment sales contracts.

In Re Tax Appeal of Ford Motor Credit Co. · filed 2003-05-30(d)

Neither the statute or regulation include the assignee of the retailer.

Section 79-3602(a) treats affiliated corporations as separate persons for sales tax purposes; its reference to a group acting as a unit does not let a corporation disregard its separate legal status.

Pemco, Inc. v. Kansas Department of Revenue · filed 1995-12-08(a)

There is nothing in the statute defining persons which authorizes a corporation to deny its legal status in a transaction between it and an affiliated corporation and claim to be a group or combination acting as a unit. We conclude that K.A.R. 92-19-72 is not inconsistent with, nor does it exceed, the statutory definition contained in K.S.A. 1994 Supp. 79-3602(a) in the claimed particulars.

Section 79-3602(i) includes individuals derivatively liable for sales tax in its definition of taxpayers.

Copeland v. Robinson · filed 1998-12-11(i)

However, the second response to KDR’s argument, regarding the imposition of requirements not expressly provided in the statute, is that the Kansas tax statutes do require notice and other due process protections to derivative taxpayers: K.S.A. 79-3643 provides for the imposition of personal liability on those responsible for the payment and collection of sales tax (derivative taxpayers); K.S.A. 79-3602(i) defines taxpayers in such a way as to include derivative taxpayers; K.S.A. 79-3610 directs KDR to K.S.A. 79-3226 for the manner in which to issue a final determination of tax liability to taxpayers; and K.S.A. 79-3617 provides the method for collecting delinquent taxes from “any taxpayer” liable to KDR.

Section 79-3602(c) includes sales of services in the definition of “retail sale.”

Capital Electric Line Builders, Inc. v. Lennen · filed 1982-12-03(c)

Under the provisions of K.S.A. 1981 Supp. 79-3602(c) a sale of services is included within the definition of “retail sale.”

Section 79-3602(c) does not treat theft of unsold merchandise as a sale.

State v. Alexander · filed 1987-02-26(c)

In no sense may a theft be characterized as a sale. See K.S.A. 79-3602(c). Because the sweaters had not been sold, the Jones Store did not owe, and the state was not entitled to collect, a sales tax on them.

A sale under subsection (c) need not occur when property or services are initially purchased; a transfer between city departments for consideration can qualify.

In Re the Appeal of the City of Wichita · filed 2004-03-19(c)

Other than citing K.A.R. 92-19-72, which is discussed below, the City has provided no authority that a sale only occurs when the property or service is initially purchased, and the K.S.A. 1992 Supp. 79-3602(c) definition of sale does not include this requirement.

Section 79-3602(r) defines a lease or rental as a transfer of possession or control of tangible personal property for consideration; a casino manager does not lease gaming machines when the Kansas Lottery retains exclusive control over them.

In re the Appeal of BHCMC, L.L.C. · filed 2015-12-31(r)

“[A]ny transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend.” K.S.A. 2009 Supp. 79-3602(r). ... BHCMC is not leasing the EGMs from the Kansas Lottery.

Section 79-3602(k), read with section 79-3603(b), classifies telecommunications as a service rather than tangible personal property.

In Re the Appeal of Sprint Communications Co., L.P. · filed 2004-12-17(k)

Rather, the legislature has defined telecommunications as a service pursuant to K.S.A. 79-3602(k) and 79-3603(b).

Electricity is tangible personal property under § 79-3602(m).

In Re Appeal of Water Dist. No. 1 of Johnson County · filed 1999-08-13(m)

Electricity, of course, is tangible personal property. K.S.A. 79-3602(m).

Section 79-3602(l) does not require an educational institution itself to be accredited by or be a member of the NCA.

In Re the Appeal of Graceland College Center · filed 2008-10-31(l)

K.S.A.2007 Supp. 79-3602( l ) does not require an entity seeking to qualify as an educational institution to be a accredited by, or be a member of, the NCA.