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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How did 1999 Senate Bill 11 change Kansas's property tax clerical-error and grievance statutes?
1999 Senate Bill 11 (1999 Kansas Session Laws, chapter 123) amended Kansas's property tax clerical-error statutes — K.S.A. 79-1701, 79-1701a, and 79-1702 — to reinforce that clerical errors are minist…
Are mineral oil purchases used in the grain handling business exempt from Kansas sales tax as property consumed in production?
Yes. The Department ruled that mineral oil purchases fall within the K.S.A. 79-3606(n) exemption for tangible personal property consumed in the production, manufacture, processing, or compounding of t…
For a historic-theater sales tax increment, does retail space in adjacent property count, and do a tenant's off-site ticket sales count?
Two answers. For the historic-theater sales tax increment under K.S.A. 12-1770 et seq. (1999 Senate Bill 76), retail space in adjacent/ancillary property counts only if that building was originally pa…
Why did Kansas declare the 'Take-A-Spin' pull-tab game illegal in Notice 99-13?
Notice 99-13 declares the pull-tab game 'Take-A-Spin' (and similar games) illegal. The game uses conventional pull-tab tickets, but some tickets show 'Spin' or a similar designation under a tab that g…
Does a school owe Kansas sales tax on tickets to school dances and on t-shirts it sells to athletes, and are dinner-theatre group purchases taxable?
Yes to all three. The Department ruled that a school must collect Kansas sales tax on tickets to school dances, because the tickets are admissions to a place providing amusement/entertainment/recreati…
Which of a community theatre's fundraising receipts — golf fees, auctions, concessions, ride and admission charges, gift certificates — are subject to Kansas sales tax?
Most of them are taxable. For a community theatre's fundraisers, the Department ruled that golf tournament fees, auction gross proceeds, and concession stand receipts are taxable (no nonprofit exempti…
Is a community-service organization exempt from Kansas sales tax just because it operates on federal or state grant funds?
No. The Department ruled that a community-service organization is not exempt from Kansas sales tax simply because it operates on federal or state grant funds. Kansas grants only certain, specific exem…
Are credit reporting, employment verification, title insurance, escrow closing fees, and appraisal services subject to Kansas sales tax?
No, those services are not taxable. The Department ruled that credit reporting, employment verification, sale of title insurance, escrow closing fees, and appraisal services are not subject to Kansas …
On an exempt project, are repairs to a contractor's own equipment tax-exempt like repairs to equipment it rents for that job?
No — the two are treated differently. On an exempt project, equipment a contractor rents specifically for that job is exempt, and repair parts and repairs to that rented machine (paid by the owner) ar…
Are hotel room rentals purchased directly by a school exempt from Kansas sales tax, and does the transient guest tax still apply?
Direct purchases are exempt from sales tax, but transient guest tax still applies. The Department ruled that hotel room rentals purchased directly by a public or private elementary/secondary school or…
For a parent-teacher organization, which fundraiser sales are exempt tangible-property sales and which are taxable services under the PTA/PTO exemption?
It splits between goods and services. The Department ruled that a parent-teacher organization's sales of tangible personal property — food/drink tickets, silent auction proceeds, school supply kits, t…
When an insurer pays a repair bill on behalf of a tax-exempt hospital but the invoice is billed directly to the hospital, is the repair exempt from Kansas sales tax?
Yes — it is an exempt direct purchase by the hospital. A company that provides technical-equipment coverage for a tax-exempt hospital asked whether repairs it pays for are taxable. Because the hospita…
Does a nonprofit corporation that runs craft shows to fund charities automatically qualify for a Kansas sales tax exemption?
No — the nonprofit is not exempt and must register, collect, and remit tax. A corporation organized not-for-profit for charitable and educational purposes, which promotes craft shows and distributes t…
Are admission ticket sales — including service charges — taxable in Kansas, and are free ticket give-aways taxable?
The paid tickets are taxable; the free ones are not. The Department ruled that admission ticket sales, including any service charges, are subject to Kansas sales tax under K.S.A. 79-3603(e), which tax…
Is transferring a company vehicle from the individual officers who financed it into the corporation's name subject to Kansas sales tax?
Yes — it is a taxable isolated or occasional sale, but two exceptions can avoid the tax. Corporate officers financed a pickup in their own names because the company had no credit history; the company …
Are sales of beverages for human consumption subject to Kansas sales tax?
Yes. The Department ruled that Kansas sales and use tax law provides no exemption for the sale of beverages for human consumption, so the seller must collect and remit the appropriate Kansas sales or …
Does a ministry keep its Kansas religious-organization sales tax exemption after it stops holding worship services?
No — the ministry lost its religious-organization exemption when it stopped worshipping. A ministry had been granted the Kansas religious-organization sales tax exemption under K.S.A. 79-3606(aaa) by …
Are prepaid paging cards and bundled pager packages taxed as tangible personal property or as telecommunications services in Kansas?
They are taxed as telecommunications (beeper) services, not as tangible personal property, and the airtime provider collects the tax. A company that sells pagers and one-way airtime asked whether prep…
Is a medical device an orthopedic surgeon implants to help bones heal after surgery exempt from Kansas sales tax?
Yes — the bone-healing device qualifies for the prosthetic and orthopedic appliance exemption. A device that an orthopedic surgeon uses during surgery and that is absorbed into the body to assist the …
How does Kansas sales tax apply to sales of gas, electricity, heat, and water?
It depends on who uses the utility and how. Kansas imposes state sales tax on sales of gas, water, electricity, and heat (K.S.A. 79-3603(c)), then exempts from the state tax utilities delivered for no…
Is applying a fabric or protective coating to furniture and carpets taxable in Kansas, and does cleaning them count as a taxable service?
Applying fabric treatments or protective coatings is taxable; cleaning carpets and furniture is not. The Department ruled that cleaning carpets and furniture is not subject to sales tax because it doe…
When can a contractor claim the sales tax exemption on a U.S. government (or other exempt-entity) project, and what happens to purchases made before the certificate is issued?
The exemption only becomes available once the exempt entity (here, one contracting for a U.S. government project) has secured a project exemption certificate from the state. Under K.S.A. 79-3606(d) an…
Is piano tuning done at a residence exempt from Kansas sales tax under the residential repair exemption?
No — piano tuning remains taxable even when done at a home. The Department has historically taxed piano tuning as a service of servicing tangible personal property, and asked whether Senate Bill 493's…
Does a business that arranges to sell clients' items on eBay owe Kansas sales tax on its fees, and on the items it ships to buyers?
The service fees are not taxable, but the operator must collect sales tax on items shipped to Kansas buyers. A business that photographs clients' items, lists them on eBay, and ships them to winning b…
How does Kansas sales tax apply to security equipment installation and monitoring for commercial versus residential customers?
Monitoring is not taxable; commercial installations are taxed on both labor and materials, while residential installations are taxed only on materials. A Missouri company that installs security equipm…
How do Kansas project exemption certificates work, and who can get one?
A project exemption certificate (PEC) lets a qualifying entity buy the materials and services for a specific construction project free of Kansas sales tax. The Department explained that an entity enti…
Are restaurant meals bought by school district employees exempt from Kansas sales tax, and when does the school's exemption apply?
Meals bought by school district employees are taxable; only meals purchased directly by the district are exempt. The Department advised that the Kansas Retailers' Sales Tax Act contains no exemption f…
Are membership dues and recreational activity fees charged by a nonprofit community service organization exempt from Kansas sales tax?
Only if the organization qualifies for a specific property-tax exemption — this one did not, so its dues and fees are taxable. The 1998 legislature exempted membership dues and recreational activity f…
Are sales of nutrition supplements exempt from Kansas sales tax?
No — nutrition supplements are taxable, and the seller must collect and remit the tax. A company selling nutrition supplements asked whether the sales are exempt. Kansas imposes sales tax on the gross…
Does Kansas sales tax apply when a seller ships tangible personal property to a buyer at a point outside Kansas?
No Kansas sales tax applies when the seller delivers the goods out of state, but an in-state pickup is taxable even if the buyer later takes the goods out of Kansas. The Department explained that when…
Are sales of shower vitalizers and liquid enhancers exempt from Kansas sales tax?
No — shower vitalizers and liquid enhancers are taxable, and the seller must collect and remit the tax. Kansas imposes sales tax on the gross receipts from retail sales of tangible personal property u…
How is the Kansas dry cleaning environmental surcharge calculated with sales tax, and how do store versus factory coupons affect the tax base?
The surcharge and sales tax share the same base; store coupons reduce it, but factory coupons do not. The Department ruled that the Kansas dry cleaning environmental surcharge and sales tax are comput…
Are charges for children to ride a nonprofit's replica train at carnivals and community events subject to Kansas sales tax?
Yes — the train-ride charges are taxable recreational fees. A nonprofit's small replica train, operated at school carnivals and community events, charged children to ride. The Department ruled these c…
Can a community center claim the Kansas sales tax exemption for religious organizations?
No. The Department ruled that the exemption applies only to 'religious organizations' that use their purchases exclusively for religious purposes, and a community center is neither a church nor an org…
Is an energy-loss testing service using thermography and current readings subject to Kansas sales tax?
No — the energy-loss testing service is not taxable. A company performs thermography and current readings in homes and businesses to detect areas of energy loss, taking heat-sensitive images and givin…
Are hotel charges paid by a federal employee with a centrally billed government credit card exempt from Kansas sales and transient guest tax?
Yes — centrally billed federal card charges are exempt, but individually billed card charges are taxable. The Department ruled that hotel accommodations a federal unit paid for with centrally billed V…
Does an antique dealer conducting estate sales for owners and their heirs have to collect Kansas sales tax?
No — the estate sales are exempt isolated or occasional sales, so no Kansas sales tax is due. An antique dealer conducts three-day, garage-sale-style estate sales at an owner's home, selling household…
Does a Kansas company owe sales tax on an internet-based, downloadable legal-information newsletter sold issue by issue?
No — the online legal newsletter is a service Kansas has not enumerated as taxable, so no state or local sales tax applies to its sale. A Kansas corporation produced an internet-based legal-informatio…
Which cattle-breeding and animal-care items sold to Kansas farmers and ranchers are exempt from sales tax?
Many cattle-breeding and animal-care items are exempt under three farm exemptions, with an exemption certificate required. The Department applied Kansas's three farm/ranch exemptions — ingredient or c…
Is the labor to install a central heating and air conditioning system in a commercial building exempt from Kansas sales tax?
The installation labor is exempt only if done as part of the building's original construction; installed any other way, it is taxable. The Department ruled that installing a complete central heating a…
Are sales of dietary and health care supplements exempt from Kansas sales tax?
No — dietary and health care supplements are taxable, and the seller must collect and remit the tax. Kansas imposes sales tax on the gross receipts from retail sales of tangible personal property unde…
Can a for-profit hospital or lab buy tangible personal property tax-free under the nonprofit-hospital or consumed-in-production exemptions?
No — a for-profit entity cannot use the nonprofit-hospital exemption, and because its testing services are nontaxable, it also cannot use the consumed-in-production exemption. The Department explained…
Is the labor of cleaning above-ground storage tanks and processing the removed sludge subject to Kansas sales tax?
No — cleaning above-ground storage tanks and processing the removed sludge is cleaning, not taxable servicing or maintaining, so the labor is exempt from Kansas sales tax. K.S.A. 79-3603(q) taxes the …
Do German nationals on a temporary Kansas work assignment, paid in Germany by a German employer, owe Kansas income tax?
It depends on federal law: Kansas income tax begins with federal adjusted gross income, so German nationals owe Kansas tax only on income that is included in their federal AGI and attributable to Kans…
Is a lease of tangible personal property to a Federal Home Loan Bank exempt from Kansas retailers' sales tax?
Yes — a lease of tangible personal property to a Federal Home Loan Bank is exempt from Kansas retailers' sales tax, because federal law bars states from subjecting these federal entities to sales tax.…
Does an organization qualify as a religious organization for the Kansas sales tax exemption on purchases used exclusively for religious purposes?
Yes — the Department found the organization qualifies as a religious organization, so its direct purchases used exclusively for religious purposes are exempt from Kansas retailers' sales tax under K.S…
Is a dirt scraper designed for use with farm tractors exempt from Kansas sales tax as farm machinery and equipment?
Yes — a dirt scraper designed for use with farm tractors is exempt farm machinery and equipment under K.S.A. 79-3606(t), so its sale is exempt from Kansas sales tax. K.S.A. 79-3606(t) exempts all sale…
Does an out-of-state religious organization operating in Kansas qualify for the Kansas sales tax exemption on purchases used exclusively for religious purposes?
Yes — the Department found the organization is a religious organization, so its direct purchases used exclusively for religious purposes are exempt under K.S.A. 79-3606(aaa). A not-for-profit charitab…
Are excavation and backhoe services subject to Kansas sales tax?
Often exempt — excavation and backhoe services escape Kansas sales tax in three situations: original construction of a building, remodeling of a residence, or whenever the excavation is separately bil…
Is a parent-teacher association exempt from Kansas sales and compensating tax on both its purchases and its sales?
Yes — a parent-teacher association is exempt under K.S.A. 79-3606(yy), so it neither pays Kansas sales or compensating (use) tax on what it buys and consumes nor collects tax on its sales of tangible …
Which services purchased by a hotel — maintenance, landscaping, security, extermination, employment placement — are taxable in Kansas?
It depends on the service: building maintenance, landscape maintenance, and extermination services performed at a hotel are taxable, while furnishing security personnel and employment placement servic…
Does an organization qualify as a religious organization for the Kansas sales tax exemption, and what if it includes lay people and businesses?
Yes for this organization — the Department found it is a religious organization, so its direct purchases used exclusively for religious purposes are exempt under K.S.A. 79-3606(aaa). A qualifying reli…
Does a freelance photographer charge Kansas sales tax on mileage and telephone charges billed along with the photography fee?
Yes — a photographer is a retailer, so Kansas sales tax is due on the entire gross receipts for the services, including separately billed mileage and long-distance telephone charges. A freelance photo…
Does a parent-teacher association collect Kansas sales tax when it sells admission tickets, and can it buy the tickets tax-free?
It splits two ways: a PTA's sales of tangible personal property are exempt, but selling admission tickets — a taxable service — to the final user is taxable, even though the PTA can buy the tickets ta…
Is a business that transcribes printed documents into Braille required to charge Kansas sales tax?
No — transcribing printed documents into Braille is a non-enumerated service that Kansas does not tax, so the provider does not charge sales tax (but pays tax on its own inputs). A proposed business w…
Does the Kansas sales tax exemption for restoring fire- or flood-damaged buildings depend on whether the cause was natural or man-made?
It depends on the peril, not the cause: fire-damage restoration labor is exempt however the fire started, but water damage is exempt only if it results from an actual 'flood' — a broken pipe or roof l…
Is a pathology proficiency-testing subscription taxable in Kansas, and does the provider owe use tax on specimens shipped in from out of state?
No — the proficiency-testing service is a non-enumerated service that Kansas does not tax, and the test materials are incidental, so the provider is their consumer and owes no Kansas use tax on specim…
Does a convention and tourism committee that certifies a tax levy to a county qualify as an exempt political subdivision in Kansas?
Yes — a convention and tourism committee that certifies a tax levy to its county is a political subdivision under K.S.A. 79-3602(n), so it qualifies for the Kansas sales tax exemption and can issue an…
Can a Kansas retailer close its sales tax registration once its supplier collects and remits the tax?
Yes — where the supplier now collects and remits the Kansas sales tax, it is appropriate for the retailer to close out its Kansas retailers' sales tax registration. The taxpayer bought food supplement…
How does a contractor owe Kansas state, local, and use tax on materials and supplies it buys in- and out-of-state?
A contractor pays Kansas state and local sales tax on materials bought from an in-state retailer (local tax sourced to the retailer's place of business), and Kansas compensating (use) tax on materials…
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.