Kansas State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in Kansas, with full citations and the original source on every page.
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Is meat bought to be processed and then sold at retail exempt from Kansas sales tax as an ingredient or component part?
Yes. The Department advised that meat purchased to be processed and ultimately sold at retail to consumers is exempt from Kansas sales tax as an ingredient or component part under K.S.A. 79-3606(m). T…
Are garage doors, repair parts, and repair services at a salt-manufacturing plant exempt as integrated production equipment?
No. Garage doors provided access to the manufacturing building but did not receive, move, transform, test, control, package, power, or otherwise perform any function of integrated production equipment…
Does a nonprofit association of teaching physicians qualify for Kansas's educational-institution sales-tax exemption?
No. The Department advised that a newly formed nonprofit 'institute' — an association of teaching physicians organized as a 501(c)(3) school — does not qualify for the Kansas educational-institution s…
Are labor services performed on a fraternity house at a state university exempt from Kansas sales tax as work on a residence?
Yes — the labor is exempt. The Department advised that a fraternity (or sorority) house is a residence — an enclosure constructed for human habitation — so labor services to repair it qualify for Kans…
Is a religious organization's direct purchase of hotel accommodations exempt from Kansas sales tax with a proper exemption certificate?
Yes. The Department advised that a direct purchase of hotel accommodations by a Kansas or out-of-state religious organization is exempt from Kansas sales tax when supported by a properly completed exe…
Is the rental of construction equipment to a contractor installing manufacturing machinery exempt from Kansas sales or use tax?
No. The Department advised that Kansas law does not exempt the purchase or rental of construction equipment by a contractor for the purpose of installing manufacturing machinery, so the rental of that…
Does a local 501(c)(3) charity that helps cancer patients qualify for a Kansas sales-tax exemption?
No. The Department advised that a local charity that assists cancer patients — even with federal 501(c)(3) status — does not qualify for a Kansas sales-tax exemption. Exemptions are narrowly construed…
Does a 501(c)(3) charity that grants wishes to seriously ill children qualify for a Kansas sales-tax exemption?
No. The Department advised that a local chapter of a wish-granting charity for children with life-threatening illnesses — even with federal 501(c)(3) status, a charitable solicitation license, and a s…
Must a museum collect Kansas sales tax on tour-ticket admissions and gift-shop sales?
Yes to both. The Department advised that a museum must collect Kansas sales tax on the sale of tour tickets that admit people to the museum, because K.S.A. 79-3603(e) taxes the gross receipts from adm…
Does a personal shopper who buys and delivers items for a customer charge Kansas sales tax on the service fee?
No. The Department advised that personal-shopping services — buying and delivering groceries, gifts, restaurant food, flowers, toys, and similar items for the customer who hires you — are not an enume…
Are concert/show tickets given away in barter (for advertising, airtime, or sponsorship) subject to Kansas sales tax?
It depends on whether the ticket is exchanged for value. Kansas taxes barter because 'selling price' (K.S.A. 79-3602(g), K.A.R. 92-19-46) is the total consideration given — including by exchange or ba…
Does a 501(c)(3) adult day-care program for severely disabled young adults qualify for a Kansas sales-tax exemption?
No. The Department advised that a 501(c)(3) adult day-care program for young adults with severe or multiple physical and mental disabilities does not qualify for a Kansas sales-tax exemption. Exemptio…
Does a farm tire repair machine qualify for Kansas's farm machinery and equipment sales-tax exemption?
No. The Department advised that a farm tire repair machine is not exempt as farm machinery and equipment, because it is repair equipment — not farm production equipment. Although sod production is an …
When must an entertainment promoter accrue Kansas sales tax on admission tickets provided to performers, vendors, media, the public, or employees?
Tickets transferred under a contract in exchange for something of value — such as performance, advertising, venue, sponsorship, signage, or radio services — were taxable admission sales, and the promo…
Are Internet service and web-hosting services subject to Kansas sales tax?
No. The Department advised that Internet service and web-hosting services are not subject to Kansas sales tax, because they are not among the services specifically enumerated as taxable in the sales t…
Does a contractor qualify for the Enterprise Zone sales tax exemption on a new facility as a 'nonmanufacturing business'?
Yes -- the exemption was granted and a refund ordered. A contractor sought the Enterprise Zone business-and-job sales tax exemption (K.S.A. 79-3606(cc)) for a new Wichita facility. As a 'retail busine…
Is service work on a manufacturing plant's garage doors exempt under the integrated production (integrated plant) exemption?
No — the work is taxable. The Department advised that service performed on a plant's garage doors is subject to state and local sales tax, because garage doors are not integrated production equipment.…
Is a third-party hauler's separate charge to deliver materials to a job site subject to Kansas sales or use tax?
No, on these facts. The Department advised that where an asphalt paving contractor buys materials and separately hires an independent third-party hauler (paid separately from the supplier) to deliver …
Is a tarp purchased to cover an agricultural gravity box exempt from Kansas sales tax as part of farm machinery and equipment?
Yes. A gravity box used in the described farming and ranching operation qualified as exempt farm machinery and equipment, and the tarp covering the box was treated as part of that exempt equipment. Be…
Is safety and protective apparel for production employees exempt under the integrated production exemption, and are safety shoes exempt if the employee shares the cost?
It depends on whether the apparel is furnished entirely free. Under K.S.A. 79-3606(kk)(1), the integrated production exemption reaches safety and protective apparel an employer buys and furnishes with…
Is a nonprofit senior center exempt from Kansas sales tax on its purchases and fundraising sales?
No. The Department advised that a nonprofit senior center is not exempt from Kansas sales tax — not every non-profit organization enjoys an exemption, and no statute exempts senior centers. Creating s…
Do chemicals purchased to clean dairy equipment qualify for Kansas's 'consumed in production' sales-tax exemption?
No. The Department ruled that chemicals purchased to clean dairy equipment do not qualify for the 'consumed in production' exemption in K.S.A. 79-3606(n). Kansas regulation K.A.R. 92-19-53(c)(3) speci…
Is a rural water district's flat monthly meter fee subject to Kansas sales tax?
Yes. The Department ruled that a flat monthly meter fee a rural water district bills to all customers — whether or not they buy water — is subject to Kansas sales tax. It does not fit any of the three…
Is installing water, sanitary sewer, and storm sewer lines for a developer exempt as original construction, and can the developer buy the materials tax-free?
The installation labor is exempt, but the materials are taxable. The Department ruled that installing water lines, sanitary sewer lines, and storm sewer lines on a developer's real property that is la…
Which of a sailing association's charges — membership fees, boat slip fees, and boat/trailer storage — are subject to Kansas sales tax?
It depends on the charge. The Department ruled that the sailing association's membership fees are taxable because they let members use the facilities for recreation or entertainment. Separately stated…
Are water, gas, and electricity used by a car wash exempt as consumables, and which uses remain taxable?
Water and utilities consumed in operating all types of car washes were exempt like soap, wax, and cleaning chemicals. Exempt electricity included power for pumps, mechanical washers, and coin-operated…
Are radio frequency generators and catheters exempt from Kansas sales tax when bought directly by a nonprofit hospital versus by a for-profit surgical center or doctor?
It depends on the buyer. The Department ruled that radio frequency generators and catheters are exempt from Kansas sales tax when a public or private nonprofit hospital purchases them directly and use…
Can a charitable not-for-profit that is not a religious organization use Kansas's religious-organization sales-tax exemption?
No. The Department ruled that the exemption in K.S.A. 79-3606(aaa) applies only to religious organizations and does not extend to all charitable not-for-profit entities. Because the requesting charity…
Does Kansas exempt an organization's fundraising sales of Christmas trees from sales tax?
No. The Department ruled that Kansas law contains no exemption or exception for the organization's fundraising sales of Christmas trees. The organization must collect and remit Kansas sales tax on all…
Could a separate purchasing entity use a Kansas direct-pay permit and then accept a resale certificate from the related operating entity that consumed the property?
No on the proposed facts. A direct-pay permit was for a taxpayer's own business-use purchases when the correct tax treatment or destination was difficult to determine. It was not meant to let one enti…
Are pallets, labels, stretch wrap, tape, and ice used to ship product exempt from Kansas sales tax as ingredient or component parts?
Yes, if they are not returned for reuse. The Department ruled that pallets, labels, stretch wrap, tape, and in some cases ice are exempt from Kansas sales/use tax as ingredient or component parts unde…
Can a Kansas contractor buy materials tax-free for an out-of-state job under the temporary-storage exemption?
Only in narrow circumstances. The Department ruled that a contractor may claim Kansas's temporary-storage exemption (K.S.A. 79-3702(e)) on materials only if they are (1) purchased from an out-of-state…
When is a Kansas retailer's out-of-state shipment exempt from Kansas sales tax, and what proof of delivery is needed?
The out-of-state shipment is not taxed. The Department ruled that when a seller is obligated to deliver goods to a point outside Kansas — or delivers them to an interstate common carrier or the mails …
Are a church-affiliated camp's fees for summer camp and instructional activities subject to Kansas sales tax?
No. The Department ruled that the fees paid to attend the church-affiliated summer camp are not subject to Kansas sales tax, and neither are the fees for its instructional classes — archery, swimming,…
Can an out-of-state county claim a Kansas sales-tax exemption on goods it takes delivery of in Kansas?
No. The Department ruled that a Missouri county may not claim a Kansas sales-tax exemption when it takes delivery of asphalt emulsion in Kansas. The sale occurs in Kansas when possession transfers the…
Which Kansas grain elevator purchases are taxable and which are exempt on and after January 1, 2001?
This notice tells Kansas country and terminal grain elevator operators which purchases are taxable or exempt on and after January 1, 2001, and supersedes prior elevator notices. The simple rule: purch…
Is a city's purchase of a diesel generator to produce electricity for sale exempt from Kansas sales tax?
Yes, under the manufacturing exemption. The Department ruled that a city's purchase and installation of a diesel generator and associated equipment to produce electricity for sale is exempt under K.S.…
At a weight-management clinic, which charges are taxable — instructional classes, fitness-center membership, or food products?
It depends on the charge. The Department ruled that fees clients pay to attend or participate in the clinic's classes — including the individualized private weight-management class and the 'Mommy Clas…
Which of a school PTO's carnival charges — game tickets, a cakewalk, a moonwalk — are subject to Kansas sales tax?
The game, cakewalk, and moonwalk charges are taxable; sales of goods are not. The Department ruled that although K.S.A. 79-3606(yy) exempts a parent-teacher organization's sales of tangible personal p…
Under Kansas's original 2001 historic rehabilitation credit, could credits be transferred or specially allocated, and could banks or insurers claim them?
Under the 2001 statute, the Kansas historic rehabilitation credit was not transferable. A partnership, S corporation, LLC, or other flow-through entity allocated the credit to owners according to thei…
Which of a device seller's charges — installation, training, repairs, warranty, tech support, freight, and others — are subject to Kansas sales tax?
It depends on the charge. The Department ruled that the electronic access control devices themselves — plus installation, repairs, extended warranty, a credit allowance, management charges, artwork se…
Are advertising catalogs given to customers free of charge subject to Kansas sales or use tax, and does Kansas exempt periodicals?
No periodical exemption, and the catalogs are taxable. The Department ruled that Kansas does not exempt periodicals from sales or compensating (use) tax, so a company's industry catalogs — even though…
Are engineering, design, fabrication, and installation of control panels for a manufacturer's machinery exempt from Kansas sales tax?
Yes, when two conditions are met. The Department ruled that a company's engineering, design, fabrication, and installation of control panels for machinery and equipment — together with the related equ…
Which sterilization, lighting, HVAC, and air-cleaning equipment qualified for Kansas's integrated production exemption?
Equipment sterilizing bottles or containers for the finished product qualified as exempt packaging equipment, and its operating electricity was exempt. General plant lighting, heating, cooling, ventil…
Are medical-record copying, storage, digital database, and file-management services subject to Kansas sales tax?
No, the services are not taxable. The Department ruled that no imposition exists in Kansas law to tax a company's medical-record copying, monthly storage, virtual (digital) file-room database, or file…
Is a nonprofit senior center exempt from Kansas sales tax?
No. The Department ruled that this nonprofit organization is not exempt from Kansas sales tax. Although 1998 Senate Bill 493 added sales-tax exemptions for several deserving organizations — including …
Do construction materials bought with a political subdivision's bond proceeds stay exempt from Kansas sales tax if a private company buys the industrial revenue bonds?
Yes, they remain exempt. This ruling confirms an earlier Department ruling (issued August 30, 2001) that construction materials for the project are exempt from Kansas sales tax because they will be pu…
Must a newspaper collect Kansas sales tax on subscriptions, and does it still owe use tax on the free copies it gives away?
Yes, Kansas newspaper subscriptions are taxable. The Department ruled that a publisher must collect Kansas sales tax on subscriptions delivered by mail to a Kansas address (the specific rate is redact…
Which medical supplies and equipment — including rentals and delivery fees — are exempt from Kansas sales tax?
It depends on the item, a prescription, and the buyer. Under K.S.A. 79-3606(r), prescribed prosthetic and orthopedic appliances are exempt — from the items listed, only wheelchairs, shower/commode cha…
Can a company buy ATVs and watercraft tax-free if it modifies them and resells them?
Yes, the purchases are exempt. The Department agreed that a company buying all-terrain vehicles and watercraft to modify and then resell — to a dealer or an end user — may acquire them without paying …
Are hand tools sold to a Kansas manufacturer exempt from sales tax if the manufacturer uses them in production?
Exempt when the manufacturer's use test is met. The Department explained that Kansas law changed after the seller's 1999 inquiry: under the current integrated production exemption, K.S.A. 79-3606(kk),…
On a taxable installation contract, what is included in the Kansas sales-tax base — and can a contractor deduct overhead and profit?
Overhead and profit are part of the taxable base. Addressing contracts to install or apply tangible personal property — which the ruling cites K.S.A. 79-3606(p) as taxing — the Department explained th…
Must a nonprofit historical society collect Kansas sales tax when it sells books?
Yes. The Department ruled that a historical society must collect the appropriate Kansas sales tax on its sales of books whenever the purchaser cannot provide a properly completed exemption certificate…
Are disposable medical electrodes exempt from Kansas sales tax as prosthetic or orthopedic appliances?
No. The Department ruled that disposable electrodes do not qualify for the prosthetic and orthopedic appliance exemption in K.S.A. 79-3606(r), and so are subject to Kansas sales tax. That exemption co…
Does an organization that sells coupons or discount cards redeemable by third-party merchants have to collect Kansas sales tax?
Yes, the seller must remit sales tax. The Department's policy is that an organization engaged in the retail sale of coupons or discount cards that are redeemable by third-party merchants is the retail…
How was qualified business facility investment calculated for the Kansas HPIP credit, especially for existing facilities and phased projects?
The HPIP credit equaled 10% of qualified business facility investment above $50,000. Investment was averaged using property values on each month's last business day during the taxpayer's tax year and …
Are construction materials bought with STAR bond or IRB proceeds, and the construction labor, exempt from Kansas sales tax?
The materials and the construction labor are exempt. The Department agreed with a company financing a retail and distribution facility with STAR bonds and industrial revenue bonds (IRBs) that: (1) mat…
Are T-shirt sales taxable in Kansas if all the profits go to charity, and must consignment sellers collect the tax too?
Yes, the T-shirt sales are taxable. Even though the profits are going to charity (the United Way Fund in New York City), the Department ruled that under K.S.A. 79-3603(a) the seller must collect, repo…
After the court injunction was lifted, must Kansas fuel distributors remit tax on deliveries to retailers on Indian reservations?
A federal District Court for the District of Kansas lifted its injunction that had barred the Kansas Department of Revenue from collecting motor fuel tax on fuel sold or delivered to retailers on the …
Is repair and handyman labor (and mileage) taxable in Kansas, and is work done to a residence exempt?
Service labor and mileage are generally taxable — but residential repair labor is exempt. The Department explained that Kansas taxes labor to install, apply, alter, maintain, service, or repair tangib…
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These are official tax letter rulings and advisory opinions issued by Kansas's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.