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 charity golf tournament whose proceeds go to a parks and recreation department exempt from Kansas tax?
No — the Kansas Department of Revenue found no provision in either the Kansas retailers' sales tax act or the Kansas income tax act that would exempt an annual golf tournament from tax, even though it…
Does the Kansas 'hand tools' sales tax exemption include hand-held power tools, or only manually powered tools?
The Department declined to narrow its definition: 'hand tools' under K.S.A. 79-3606(kk) include any hand-held power-operated or manually operated tool, not just tools powered by hand. It has defined t…
Must an out-of-state manufacturer with no property or employees in Kansas file a Kansas corporate income tax return?
No — based on the facts presented, the Kansas Department of Revenue concluded the company is not required to file Kansas income tax returns. The company manufactures fixtures and sells them FOB Arizon…
Is food a church buys for Vacation Bible School or a church-sponsored religious education event exempt from Kansas sales tax?
Exempt — food a qualifying 501(c)(3) religious organization buys with a church check, prepares for service at a church religious function, and serves as part of that function is exempt from Kansas sal…
Is a Kansas sale exempt when the seller ships the goods out of state by common carrier or the mail?
No — Kansas sales tax does not apply when the seller of tangible personal property is obligated to deliver the property to a point outside Kansas, or delivers it to an interstate common carrier or the…
Are a retailer's freight and shipping charges taxable in Kansas when the item sold is taxable?
Yes — if the item being sold is subject to Kansas sales tax, the retailer's shipping and freight charges are also subject to tax, whether they are included in the total product price or separately sta…
When utility services are unbundled, how is Kansas sales tax computed and who must collect it?
When electric and natural gas services are unbundled into a commodity charge and a distribution charge, Kansas sales tax should be computed individually on each component. How the charges and tax appe…
Is the labor to install a dome roof on an existing storage tank taxable, or exempt as original construction?
Taxable — installing a dome roof on top of an existing storage tank is not exempt "original construction," so the installation labor is subject to Kansas sales tax. Under K.S.A. 79-3603(p), installing…
Are a boar stud operation's semen sales, delivery charges, and supplies exempt from Kansas sales tax?
A boar stud operation's sales of semen dosages to Kansas hog producers are exempt when the buyer furnishes an exemption certificate, because semen bought by those breeding and raising hogs for ultimat…
Is welding rod a farmer buys to repair machinery exempt from Kansas sales tax?
Taxable — welding rod a farmer buys to repair machinery is a taxable welding supply, not exempt. It is not "farm machinery and equipment" or a "repair and replacement part" under the K.S.A. 79-3606(t)…
Must a group that buys weather-alert radios with grant funds and resells them at cost collect Kansas sales tax?
Yes — a community group that bought weather-alert radios with FEMA Project Impact grant funds and resells them to residents and businesses is a retailer and must collect and remit Kansas sales tax, ev…
Which foodservice products sold to restaurants, nursing homes, and schools are exempt from Kansas sales tax?
It depends on the item and the buyer. Disposable foodservice items a restaurant passes to the customer with the meal — napkins, straws, doilies, toothpicks, disposable cups and silverware, carryout co…
Is demolition labor taxable in Kansas, or exempt when tied to original construction?
Taxable — on these facts the demolition labor is subject to Kansas sales tax, and the contractor's purchases of materials and supplies to perform the contract are taxable too. K.S.A. 79-3603(p) taxes …
Is a domestic violence shelter's food purchases exempt from Kansas sales tax?
Taxable — a domestic violence group shelter is not exempt from Kansas sales tax on the food it buys to prepare meals for its residents. The Department explained that not every nonprofit organization e…
If a retailer refunds an extended warranty charge, must it also refund the sales tax collected on it?
Yes — when a retailer refunds an extended warranty charge (here, by sending a check to the finance company to reduce the loan principal), the state and local sales tax that was collected on that warra…
Are video captioning services taxable in Kansas, and can the blank tape be bought exempt?
Video captioning is a taxable service in Kansas, so the company must collect sales tax on the gross receipts it charges customers for captioning. Kansas taxes the service of servicing or altering tang…
Are a nonprofit club's Christmas-tree fundraising sales exempt from Kansas sales tax?
Taxable — a nonprofit 501(c)(4) club that sells Christmas trees to raise funds for other nonprofits gets no Kansas sales tax exemption for those sales. The Department found that Kansas law does not co…
Does a separately incorporated group that includes churches, businesses, and lay persons qualify for the Kansas religious-organization exemption?
No — a separately incorporated organization whose membership includes not only churches but also businesses and lay persons does not qualify as a "religious organization" for the Kansas sales tax exem…
Is a youth baseball nonprofit exempt from Kansas sales tax on its purchases?
Taxable — a youth baseball nonprofit is not exempt from Kansas sales tax and must pay tax on its purchases of tangible personal property and taxable services. The Department explained that not every n…
Does a 501(c)(3) counseling agency qualify for the Kansas religious-organization sales tax exemption?
No — a 501(c)(3) nonprofit counseling agency does not qualify as a "religious organization" for the Kansas sales tax exemption under K.S.A. 79-3606(aaa), and a sales tax exemption it holds in another …
Does an interfaith council of congregations and individual delegates qualify as a Kansas religious organization?
No — an interfaith council whose membership includes congregations, several religious organizations, and individual delegates does not qualify as a "religious organization" for the Kansas sales tax ex…
Are a nonprofit's recurring fundraising sales exempt as isolated or occasional sales in Kansas?
Taxable — a 501(c)(3) nonprofit's recurring fundraising sales are not exempt in Kansas. The organization is not a "religious organization" under K.S.A. 79-3606(aaa) (it is not composed exclusively of …
Is building a brand-new structure on a lot where the old one was demolished exempt as original construction?
Exempt labor — erecting a totally new building on a lot where the original building was torn down is "original construction," so the installation labor is not subject to Kansas sales tax; the contract…
On a project that adds a new addition to an existing grocery store and remodels the old space, which labor is exempt and which is taxable?
Split result — the labor to build a brand-new addition (a new front entry, deli, bakery, and seating area) onto an existing grocery store is exempt original construction under K.S.A. 79-3603(p), becau…
Does an out-of-state publisher have Kansas use tax nexus because of a joint venture with a Kansas law firm?
Yes. The Department concluded that the Tennessee publisher has nexus with Kansas for compensating (use) tax purposes. Under K.S.A. 79-3702, a 'retailer doing business in this state' includes one with …
What special fireworks sales period did Kansas allow for the year 2000, and what did retailers need to do?
The 1999 Kansas Legislature authorized the sale of fireworks during December 28, 1999 to January 1, 2000 to celebrate the year 2000, in addition to the standard Independence Day selling period. Retail…
How did House Bill 2071 raise Kansas fuel tax rates starting July 1, 1999, and what inventory tax applied?
House Bill 2071 (1999) increased all Kansas fuel tax rates by $.02 per gallon effective July 1, 1999, with further increases of $.01 per gallon on July 1, 2001 and $.01 per gallon on July 1, 2003, and…
How is Kansas sales tax handled when a dealer buys aircraft for resale and the buyer is an out-of-state resident?
A corporation that buys aircraft in Kansas for the purpose of resale takes delivery here tax-free by giving the aircraft vendor a completed Kansas resale exemption certificate, which means it must reg…
Does a multi-level marketing company owe Kansas sales tax on sales of stressless, pain-relief, and stop-smoking capsules?
Taxable — Kansas sales and use tax law provides no exemption for stressless capsules, pain-relief capsules, or stop-smoking (smokers help) capsules, so the multi-level marketing company selling them m…
Is a civic organization sponsoring community youth activities exempt from Kansas sales tax on its purchases and its fundraising sales?
Not exempt — a civic organization that sponsors community youth activities does not qualify for a Kansas sales-tax exemption just because it is nonprofit, so it must pay sales tax on its purchases of …
What did House Bill 2549 do to the Kansas estate tax lien effective July 1, 1999?
The Kansas Estate Tax Act applies to estates of decedents who died on or after July 1, 1998, and originally imposed a lien on the gross value of the estate (attaching to proceeds if property was sold)…
Is a dirt scraper designed for use with farm tractors exempt from Kansas sales tax as farm machinery and equipment?
Exempt — a dirt scraper designed for use with farm tractors falls within the Kansas farm machinery and equipment exemption in K.S.A. 79-3606(t), so its sale is exempt from Kansas sales tax. That subse…
Does a nonprofit organization owe Kansas sales tax on its purchases of medical supplies, durable medical equipment, office supplies, and building repairs?
Taxable — this nonprofit organization does not qualify for a Kansas sales-tax exemption just because it is nonprofit, so it must pay sales tax on its purchases, including medical supplies, the purchas…
Are materials and services to repair railroad rolling stock used in interstate commerce exempt from Kansas sales tax?
Exempt — under K.S.A. 79-3606(y), all sales of materials and services used to repair, service, alter, maintain, manufacture, remanufacture, or modify railroad rolling stock for use in interstate or fo…
Can a library buy books free of Kansas sales tax, and does it get a tax-exempt number?
It depends on the library's legal status — libraries as such do not qualify for a Kansas sales-tax exemption, but a library that operates as a political subdivision enjoys the exemption K.S.A. 79-3606…
Is the labor to replace a city's overhead electrical wiring with new underground wiring exempt from Kansas sales tax as original construction?
Exempt labor — replacing a city's aboveground electrical wiring with new underground wiring qualifies as "original construction" of a municipal utility facility, so the installation labor services are…
How does a retailer/contractor that both sells and installs equipment handle Kansas sales tax when working for an exempt entity like a school or nonprofit hospital?
Use a project exemption certificate — a business that both sells and installs boilers, burners, and related equipment is a retailer/contractor, and when it does an installation job for an exempt entit…
Does a private elementary or secondary school qualify for a Kansas sales-tax exemption on its purchases and construction projects?
Exempt — a qualifying private elementary or secondary school is exempt from Kansas sales tax on its direct purchases of tangible personal property and services under K.S.A. 79-3606(c), provided the it…
Are Internet-based click-to-call and voice mail services taxable as telephone or telephone-answering services in Kansas?
No. The Department's opinion is that the described Internet-based services -- a click-to-call feature that connects a web-page owner with a website visitor, billed per minute, plus related voice mail …
Does a nonprofit spouses' club have to collect Kansas sales tax on its fundraising sales?
Taxable — a nonprofit enlisted spouses' club does not qualify for a Kansas sales-tax exemption just because it is nonprofit, so it must register, collect, and remit both state and local sales tax on i…
Are sales of truck tarps to interstate common carriers exempt from Kansas sales tax?
The Department's opinion is that the truck tarps come within the sales tax exemption in K.S.A. 79-3606(f), so their sale is not subject to Kansas sales or use tax. That statute exempts tangible person…
What refundable income tax credit did Senate Bill 45 give Kansas oil lease working interest owners?
Senate Bill 45 gives working interest owners a refundable Kansas income tax credit for property tax paid on the working interest of an oil lease whose average daily production per well is 15 barrels o…
Does a city owe Kansas sales or use tax on a fuel truck it buys for its airport?
Exempt — a city's direct purchase of a fuel truck for its airport is exempt from Kansas retailers' sales and compensating (use) tax under K.S.A. 79-3606(b), which exempts all direct purchases by a cit…
Is the labor to build a new office where an old structure was torn down to bare dirt exempt from Kansas sales tax?
Exempt labor — the services to construct a brand-new office building, put up after the taxpayer tore the old structure down to bare dirt and built new, qualify as performed in connection with the orig…
Does a grant-funded 501(c)(3) nonprofit count as a political subdivision that can buy free of Kansas sales tax?
Taxable — a nonprofit 501(c)(3) corporation funded roughly 90% by grants from the State of Kansas and the U.S. Government is not a "political subdivision" of Kansas, so it does not get the political-s…
When a school rents hotel rooms, are the charges exempt from Kansas sales tax, and what makes it a qualifying direct purchase?
Exempt as a direct sale, but only if billed to and paid by the school — hotel room charges purchased directly by a qualifying public or private elementary/secondary school or nonprofit educational ins…
Which local sales tax does a Kansas retailer charge when it delivers goods to a customer in a different local jurisdiction?
Charge your own location's local tax — under the rule in effect for this 1999 ruling, a retailer with a fixed business location in Kansas collects the local sales tax at its business location on retai…
Are a contractor's purchases of materials to construct or modify the Kansas Turnpike Authority roadbed exempt from Kansas sales and use tax?
Exempt — a contractor's purchases of tangible personal property for the construction, reconstruction, or modification of the Kansas Turnpike Authority (KTA) roadbed are purchases made on behalf of the…
What did House Bill 2568 require of cigarette manufacturers and roll-your-own tobacco distributors in Kansas?
Effective May 20, 1999, House Bill 2568 requires any tobacco product manufacturer that sells cigarettes to consumers in Kansas either to become a participating manufacturer under the November 23, 1998…
Is welding rod a farmer buys to repair or maintain farm machinery exempt from Kansas sales tax?
Taxable — welding rod (and a welding machine) that a farmer buys to repair or maintain farm machinery is subject to Kansas retailers' sales tax or compensating use tax. The farm machinery and equipmen…
Are participation fees charged to youths under 18 for weekly races subject to Kansas sales tax?
Exempt — the fees charged to persons under 18 years of age for participating in the weekly races are exempt from Kansas sales tax under K.S.A. 79-3603(m). That statute taxes fees and charges for parti…
Is gopher bait used exclusively on land for agricultural production exempt from Kansas sales tax?
Exempt — gopher bait used exclusively on land for agricultural production meets the definition of "property which is consumed" and falls within the consumed-in-production exemption in K.S.A. 79-3606(n…
Does a Girl Scout troop's youth-development sales-tax exemption cover a hotel room rental?
Property yes, hotel rooms no — a Girl Scout troop is a "nonprofit organization" whose direct purchases of tangible personal property for nonsectarian comprehensive multidiscipline youth development pr…
Which pull-tab bingo games did Kansas declare illegal in Notice 99-04?
The notice declares two pull-tab game types illegal. The first ('Gator' or 'American Flash') has the player match a number on an instant bingo ticket (pull-tab) with the winning number from a call bin…
How is Kansas sales tax applied to carpet sales and installation in a hotel — replacement versus a newly built hotel?
It depends on new build versus replacement — Kansas has no separate carpet rule, so carpet installation follows the general labor rule: installation labor for commercial buildings is taxable unless th…
How do oil and gas working interest owners and pass-through owners claim the Kansas business machinery and equipment income tax credit?
For tax years after December 31, 1997, the Kansas income tax credit for personal property taxes paid on business machinery and equipment (K.S.A. 79-32,206) is claimed on Kansas Schedule K-64. Under th…
Can a nonprofit buy materials tax-free to publish a calendar it distributes free of charge?
No. A 501(c)(3) nonprofit preparing to publish a 1999 environmental calendar (illustrated by schoolchildren's art) for free distribution asked whether its purchases of materials and supplies are exemp…
Are a nonprofit's fundraising-event sales, used to sponsor youth organizations, exempt from Kansas sales tax?
No. A nonprofit that holds one fundraising event a year to sponsor a variety of youth organizations asked whether the event's gross receipts are exempt. Kansas broadly taxes sales of tangible personal…
Is machinery and equipment used to process feed at a feedlot exempt from Kansas retailers' sales tax as farm machinery and equipment?
Yes. The Department ruled that a feedmill segment of the operation is a feedlot, and because farming and ranching include feedlot operations, the machinery and equipment used to process feed qualifies…
Are gross receipts from pager (beeper) services subject to Kansas retailers' sales tax, and are the pagers themselves taxable?
Yes. Kansas imposes sales tax on the gross receipts from pager services under K.S.A. 79-3603(t), which covers telephone answering, mobile phone, beeper, and other similar services. The pagers the prov…
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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.