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 a nonprofit genealogical society exempt from Kansas sales tax?
Not exempt. The Department ruled that a nonprofit genealogical society does not have a Kansas sales-tax exemption. Kansas exemptions are granted by specific statute - for example, the 1998 Legislature…
Is providing ergonomic assessment and training, including a written report, subject to Kansas sales tax?
Not taxable. The Department ruled that providing ergonomic assessment and training is not subject to Kansas sales tax, and the written report delivered to clients as part of that nontaxable service is…
Must a manufacturer accrue Kansas compensating use tax on free prescription-drug samples given to practitioners?
Exempt. The Department ruled that a manufacturer does not have to accrue Kansas compensating use tax on free samples of prescription drugs given to practitioners. Ordinarily, a company must accrue tax…
Does the Kansas manufacturing machinery and equipment exemption apply to a rail spur built from the main track to a plant?
Taxable - not exempt. The Department ruled that a rail spur running from the main track to a manufacturing plant does not qualify for the expanded manufacturing machinery and equipment exemption in K.…
Are the overhead and profit charged on a construction job subject to Kansas sales tax?
Overhead and profit follow the labor. The Department ruled that when labor services are taxable in Kansas, the overhead and profit tied to that job are taxable too. Labor for the original construction…
Is the sale of firewood for residential heating subject to Kansas state and local sales tax?
Exempt from state tax, subject to local tax. The Department ruled that firewood and other residential heating fuels (propane, LP-gas, coal, wood) sold for noncommercial residential heat or lighting ar…
How were investment and employee increases calculated for Kansas business and job development credits at an existing facility?
For an existing qualified business facility, investment and qualified employees were averaged using their values on the last business day of each month in the taxpayer's tax year, then reduced by the …
Was a country club entitled to a refund because members paid tax on dues while the incorporated club paid tax on its own purchases?
No. The incorporated country club and its members were separate legal persons: members paid sales tax on dues, while the club paid tax as final user of supplies and utilities it purchased. Those taxes…
Which office design, installation, furniture-moving, and storage charges are subject to Kansas sales tax?
Design is exempt; installation is taxable. The Department ruled that design services for laying out existing or new offices are not subject to Kansas sales tax, and neither is the labor to move existi…
Are limousine transportation services subject to Kansas sales tax, and does the operator owe tax on its equipment and supplies?
Not taxable service; taxable inputs. The Department ruled that transportation services provided by a limousine business are not subject to Kansas sales tax. Because the operator is providing a nontaxa…
Are labor services to install or repair land improvements that surround a residence subject to Kansas sales tax?
Exempt labor, taxable materials. The Department ruled that installation and repair labor on land improvements that immediately surround a residence - sidewalks, driveways, patios, fences, sodding, sep…
Are unused country-club dining minimums taxable dues, and may a club buy operating supplies tax-free because members pay tax on dues?
Unused mandatory dining minimums were taxable membership dues because payment was required to retain membership. The country club also had to pay sales tax on sand, seed, fertilizer, pool chemicals, l…
Can the assignee of a retailer's financing contracts claim a bad-debt sales tax refund by stepping into the retailer's shoes?
No -- the refund denial was sustained. The assignee of a retailer's negotiable notes or assignable conditional sales contracts cannot 'step into the shoes' of the retailer to claim a bad-debt sales ta…
May a church let its sponsored Cub Scout troop use the church's Kansas sales-tax registration or exemption documentation?
No. Kansas did not issue exemption numbers to churches or Scout organizations, and one entity could not use another entity's sales-tax registration number. A qualifying church used Form ST-28O for pur…
Does a group selling coupon books have to collect Kansas sales tax on the sales?
Yes - taxable. The Department ruled that any organization selling coupon books - even a group of school students that sells no other tangible personal property or taxable services - must collect Kansa…
Is cable television installation labor subject to Kansas sales tax at a residence versus a commercial building?
Depends on where. The Department ruled that cable television installation services performed at a residence are not subject to Kansas sales tax, under the residential exemption for installation labor …
Which charges by a Kansas construction-equipment rental company were taxable, and when could a contractor rental be exempt?
Rental companies were retailers and collected sales tax on the total customer billing, including damage waivers, delivery, pickup, labor, and fuel. Rentals to contractors were taxable unless the contr…
Is equipment that transports electricity from the generation plant to customers exempt manufacturing machinery when it is not located 'at the plant'?
No -- the refund denial was sustained. The Secretary's Designee held that the manufacturing machinery and equipment exemption in K.S.A. 79-3606(kk) reaches transportation equipment only when it is loc…
Does the expanded Kansas manufacturing machinery and equipment exemption cover an automated capacitor bank and the labor to install it?
Exempt. The Department ruled that an automated capacitor bank, and the labor to install it, come within the expanded Kansas manufacturing machinery and equipment exemption in K.S.A. 79-3606(kk) (House…
Is a nonprofit youth baseball organization exempt from Kansas sales tax on its purchases and its concession, program, and admission sales?
Not exempt. The Department ruled that a nonprofit youth baseball organization is not exempt from Kansas sales tax. It must pay sales tax on its purchases of tangible personal property and taxable serv…
Are Kansas Department of Revenue notices, guidelines, information guides, revenue rulings, and letters legally binding regulations?
Generally no. Department guidelines, instructions, memoranda, booklets, guides, notices, revenue rulings, and letters were informational and instructive rather than administrative rules or regulations…
How is a graphic arts business taxed on its sales of negatives and color proofs, and can it buy its film, paper, and chemicals tax-free?
Tax the sale, buy inputs exempt. The Department ruled that a graphic arts business must collect Kansas sales tax on the full amount it invoices clients for negatives and color proofs - including mater…
How did Kansas source local tax on telephone service and handle a sales-tax rate change occurring during a customer billing cycle?
Under the 2000 rules, state and local sales tax generally applied to intrastate and interstate telephone charges for residential and commercial customers. Local tax was sourced to the billed subscribe…
Are subscription receipts for newspapers, magazines, and periodicals mailed to Kansas subscribers subject to Kansas sales or use tax?
Taxable. The Department ruled that subscription receipts for newspapers, magazines, periodicals, trade journals, and other publications are subject to Kansas sales or use tax when the subscription is …
How did Kansas tax internet skin-care sales when an out-of-state multilevel distributor had dependent agents operating in Kansas?
Under the 2000 rules, dependent agents operating in Kansas gave the out-of-state distributor Kansas sales-and-use-tax nexus even if the website and inventory were elsewhere. Internet orders shipped di…
Must a Kansas retailer charge sales tax on sales made at a craft show on a military base such as McConnell Air Force Base?
Taxable. The Department ruled that a registered Kansas retailer selling homemade baskets at a craft show on McConnell Air Force Base must charge both state and applicable local sales tax. Kansas retai…
Are concrete cutting and coring services (core drilling, wall sawing, hydro-sawing) taxable in Kansas?
They are taxable, with a highway exception. The Department ruled that core drilling, wall sawing, and hydro-sawing of concrete are taxable services under K.S.A. 79-3603(q), which taxes 'repairing, ser…
Are sales of large decorative carved wooden horses (Dala Horses) for a community purpose subject to Kansas sales tax?
Yes, they are taxable. The Department ruled that sales of large Dala Horses — carved, gaily colored wooden horses used as a community-development display in Lindsborg — are subject to Kansas sales tax…
Are monthly satellite radio subscription fees subject to Kansas sales tax?
Yes. The Department ruled that monthly fees for a satellite radio service — here, transmissions of music and advertisements played over grocery-store intercoms — are subject to Kansas sales tax. Kansa…
Must state employees informally reselling used books for charity collect Kansas sales tax, and can they give donors a deduction receipt?
No tax, and no donor receipt. The Department ruled that an informal, ad hoc group of state-agency employees reselling used books to raise money for a good cause — where the agency does not collect or …
Can a taxpayer carry over a Business and Job Development Credit in a year when it no longer maintains the required number of qualified employees?
No -- the denial was sustained. Under K.S.A. 79-32,160a(d), a taxpayer must continue to maintain the required minimum number of qualified business facility employees to carry over an unused Business a…
Is a GAP (Guaranteed Auto Protection) premium subject to Kansas sales tax?
Not taxable. The Department ruled that a GAP (Guaranteed Auto Protection) premium is viewed as the sale of insurance in Kansas, so it is not subject to Kansas sales tax. Kansas sales tax applies to se…
Is labor to build and paint a new water tower exempt from Kansas sales tax as original construction, and is later repainting taxable?
Exempt for the new build, taxable for later work. The Department ruled that the original construction of a new water tower qualifies as the original construction of a building (an enclosure that house…
May a contractor deduct overhead and profit when figuring the Kansas sales tax base on an installation contract?
No deduction. The Department ruled that on a taxable contract to install or apply tangible personal property, a contractor may not deduct overhead expenses or profit when figuring the Kansas sales tax…
Are the gross receipts from selling discount dining cards subject to Kansas sales tax?
Taxable. The Department ruled that gross receipts from selling discount dining cards are subject to Kansas sales tax. An organization that sells coupons or discount cards redeemable by third-party mer…
Is a separately stated processing fee added to small orders subject to Kansas sales and use tax?
Taxable. The Department ruled that a flat processing fee added to small orders is subject to Kansas sales and use tax, even when set out as a separate line item on the invoice. Kansas tax is measured …
Are leases of stadium suites, hospitality chalet/tent rentals, and seat-rights memberships at sporting events subject to Kansas sales tax?
Mixed. The Department ruled that leasing a stadium suite is part of a taxable admission charge to a place providing amusement, and that a seat-rights membership is likewise taxable as part of an admis…
Are receipts from coin-operated air compressors at convenience stores subject to Kansas sales tax, and how is the tax computed?
Yes, they are taxable. In this follow-up letter the Department ruled that money collected from coin-operated air compressors at convenience stores is subject to both state and local Kansas sales tax. …
Are receipts from coin-operated air compressors at convenience stores subject to Kansas sales tax?
Yes. The Department ruled that money collected from coin-operated air compressors at convenience stores is subject to both state and local Kansas sales tax. The imposition is K.S.A. 79-3603(f), which …
Are a church's telephone charges exempt from Kansas sales tax?
They are exempt if the church pays and uses the phones only for religious purposes. The Department ruled that telephone charges to a church are exempt from state and local sales tax when the church it…
Is diesel fuel used in the various steps of a sandpit operation exempt from Kansas sales tax as consumed in production?
Partly exempt. The Department ruled that diesel fuel used to pump sand from the pit and to screen and separate it is exempt as property consumed in production under K.S.A. 79-3606(n) and 79-3602(m). B…
Can the Kansas Department of Revenue release a list of businesses by their sales tax filing frequency?
No — the Department cannot release it because the information is confidential. A person asked for a list of Wichita businesses that file sales tax monthly or quarterly. Because filing frequency is set…
Is water used to water livestock held for resale subject to Kansas sales tax?
It is exempt from both state and local sales tax. The Department ruled that sales of water used exclusively to water livestock held for resale are exempt because the water is 'consumed in production,'…
Are management services subject to Kansas sales tax?
They are not taxable. The Department ruled that management services are not subject to Kansas sales tax because the sales tax applies only to services that are 'enumerated (specified) by statutes,' an…
Are health food products and herbal supplements subject to Kansas sales and use tax?
They are taxable. The Department ruled that health food products and herbal supplements — caplets of beet, carrot, and barley extract; aloe vera juice; pollen and trace-mineral supplements; coenzyme Q…
What charges must a caterer include in the Kansas sales tax base?
Tax the total. The Department ruled that a caterer must impose Kansas sales tax on the total selling price of its service, including charges for food, beverage, service charge, hall rental, flowers, a…
How does Kansas sales tax apply to 'core charges' on replacement parts?
The core charge is taxable when you charge it, and you refund the tax with it when the core comes back. The Department ruled that because a retailer cannot tell at the time of sale whether the custome…
Must a non-profit hospital collect Kansas sales tax on admission charges to a fundraising concert?
It must collect sales tax if it is, or should be, a registered retailer. The Department ruled that admission charges to places of entertainment are taxable under K.S.A. 79-3603(e), and there is no gen…
Is computer repair and maintenance performed at a home exempt from Kansas sales tax under the residential-repair exemption?
Still taxable. The Department ruled that computer repair and maintenance services are subject to Kansas sales tax whether performed at a residence or elsewhere. The residential repair/remodel exemptio…
How are hotel rooms rented long-term by a single corporation taxed under Kansas sales tax and transient guest tax?
Sales tax always; transient guest tax only for stays of 28 days or less. The Department ruled that all hotel room rentals are subject to Kansas state and local sales tax regardless of length of stay (…
Is a business that advises clients about college, scholarships, financial aid, and occupations subject to Kansas sales tax?
It is not a taxable service. The Department ruled that a business advising clients about college, scholarships, financial aid, and occupations — compiling the information into a folder or notebook — i…
Must a non-profit collect Kansas sales tax on its annual fundraising events?
Yes — a planned annual fundraiser is taxable. The Department confirmed that a non-profit must collect sales tax on its annual fundraising events even though the events are held only once a year, the o…
How does Kansas sales and use tax apply to a quarry operator that also uses its rock to perform construction contracts?
The operator is a 'contractor-retailer' taxed under two different rules. The Department ruled that (1) selling quarried sand, rock, and gravel is a retail sale of tangible personal property, because s…
Are retail sales of vegetable and garden seed packets subject to Kansas sales tax?
They are taxable. The Department ruled that seed sales are subject to Kansas sales tax because, unlike some states, Kansas does not exempt sales of groceries or food products. States that exempt groce…
Is safety and protective apparel furnished to production employees at a chemical plant exempt from Kansas sales tax?
Safety gear exempt, uniforms not. The Department ruled that the expanded manufacturing exemption in K.S.A. 79-3606(kk)(1) reaches safety and protective apparel an employer buys and furnishes free to e…
Is the part of an IRA distribution attributable to interest on U.S. obligations exempt from Kansas income tax?
Not exempt. The Department ruled that Kansas follows the federal tax treatment of IRA (and Roth IRA) distributions: if the distribution is in federal taxable income, it is in Kansas taxable income. A …
If a training company includes books in a single tuition charge for a class, are those books subject to Kansas sales tax?
No. The Department ruled the books are not subject to Kansas sales tax. Although books are normally taxable tangible personal property under K.S.A. 79-3603(a), here the true object of the transaction …
When a seller ships goods into Kansas and stocks them at a customer's site as inventory for resale, is that shipment subject to Kansas use tax — or is tax due only when the customer draws items from the stock?
Tax is due when the customer pulls an item from the stock, not on the shipment. The Department ruled that goods the seller ships to the customer's premises and holds there as inventory for resale are …
Under Kansas's expanded manufacturing exemption, are the purchase and installation of new production machinery — including the labor and materials to reconfigure the plant to accommodate it — exempt from sales tax?
Exempt. The Department ruled that under the expanded manufacturing exemption effective July 1, 2000 (K.S.A. 79-3606(kk)(1)), the new wash-and-oven production system, the electrical and mechanical part…
Is a 501(c)(3) organization exempt from Kansas sales tax on food it buys to prepare meals for senior citizen sites?
Yes — the purchases qualify for exemption. The Department ruled that a 501(c)(3) organization preparing meals for senior citizen sites falls within the K.S.A. 79-3606(v) exemption, which covers 'all s…
Browse Kansas rulings by topic
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.