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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Must a church collect Kansas sales tax on a months-long consignment fundraiser selling greeting cards for UNICEF?
The church must collect tax on the card sales. Kansas's new exemption for religious institutions extends to their purchases, not their sales, and because of the duration of the event no exemption reac…
How does Kansas tax an out-of-state dealer that builds fabric-covered steel farm shelters in Kansas?
The builder is a contractor-consumer and owes Kansas use tax on its materials. Fabric-covered steel-arch farm shelters are 'buildings,' so the dealer that builds them is a contractor and the consumer …
Are hauling and transporting services subject to Kansas sales tax?
Not taxable, with a catch on your own purchases. Kansas taxes only enumerated services, and transporting (hauling) services are not currently among them -- so long as you are not engaged in the sale o…
Must an alarm company charge Kansas sales tax on security monitoring fees, and how is a bundled monitoring-plus-equipment charge taxed?
Don't tax the monitoring fee; the provider pays tax on the equipment. Security monitoring is not an enumerated taxable service under K.S.A. 79-3603, so monitoring fees are not subject to Kansas sales …
Is an aircraft delivered in Kansas through a chain of simultaneous transfers to a foreign buyer exempt from Kansas sales tax?
Exempt, if two conditions are met. The Department agreed that the simultaneous sale and delivery of the aircraft in Kansas is exempt from Kansas retailers' sales tax if (1) each entity in the chain of…
Are an interexchange carrier's gross receipts from 800-number calls exempt from Kansas sales tax?
It depends on whether the 800 service is WATS. Under K.S.A. 79-3603(b), only interstate wide area telephone service or wide area transmission ('WATS') service, as described in the statute, qualifies f…
Are sales of discount cards and prepaid telephone cards subject to Kansas sales tax, and what use tax applies to promotional magazines?
Discount-card sales are not taxed as admissions; use tax reaches the magazines. The Department found K.S.A. 79-3603(e) does not tax the retail sale of discount cards that give holders access to discou…
Are a club's fundraising sales exempt from Kansas sales tax because the proceeds go to youth groups like 4-H and Boy Scouts?
No. A club asked whether its fundraising sales were exempt because the bulk of the proceeds went to groups like 4-H, the Boy Scouts, and youth swim and track teams. The Department ruled that the fundr…
How does Kansas sales tax apply to a company's shipping/handling charges, distributor support fees, carrier damage payments, and newsletters mailed into Kansas?
A mix of results. Kansas sales tax is based on the retail selling price plus shipping, handling, or freight charged to the distributor. A carrier's payment to a retailer for damaged goods is recovery …
Is a maintenance contract on leased equipment taxable in Kansas, and does the repair shop charge the contract company tax?
The maintenance contract is taxable, but the repair under it is a resale. A company that leases trucks, cranes, and forklifts must buy required maintenance contracts and pay Kansas sales tax on the ma…
Does a nonprofit support group qualify for an exemption from Kansas sales tax?
No, not automatically. Being a nonprofit does not by itself exempt an organization from Kansas sales tax -- the exemption has to come from a specific statute. Senate Bill 493, signed by Governor Bill …
Which of two related religious entities qualifies for the Kansas religious-organization sales tax exemption, and how must exempt purchases be documented?
One entity qualifies, the other does not — and exempt buys must be direct. An organization carrying out the ministry of the church met the Notice 98-05 criteria for the K.S.A. 79-3606(aaa) religious-o…
Does a company owe Kansas sales tax for hooking up a network computer, selling parts, or servicing tangible personal property?
It depends on what the company does. Merely plugging a network computer into an electrical outlet does not obligate the company to collect Kansas sales tax. But if it sells parts to the end consumer, …
Does an association of churches with an IRS 501(c)(3) letter qualify as a Kansas 'religious organization' exempt on its purchases?
Yes. An organization made up of religious organizations, holding its own IRS 501(c)(3) recognition, qualifies as a 'religious organization' under the exemption added by 1998 Senate Bill 493. Because i…
Are the oxygen, acetylene, and de-ionized water resin a tool maker uses in production exempt from Kansas sales tax?
They are exempt. A company that manufactures tools for resale asked about the oxygen and acetylene it uses to silver-solder carbide to steel and the de-ionized water regeneration resin used in its ele…
Which of a network marketing company's charges — labels, diskettes, reports, online access, clubs, leads, admissions — are taxable in Kansas?
Only the mailing labels and the sales-lead videotapes are taxable. The Department ruled that a network marketing company's sales of pre-addressed mailing labels and its separately-charged sales-lead v…
Can a print shop buy copier toner tax-free for resale copies, and are its copier maintenance agreements taxable?
Toner is exempt; the maintenance agreements are taxable. A company that runs printing presses and copiers to make copies for resale should buy its toner exempt from Kansas sales tax as an ingredient o…
Can a contractor give a resale exemption certificate to rent a personnel lift tax-free for a repair job in Kansas?
No. A welding contractor cannot use a resale exemption certificate to rent a personnel lift tax-free. Under K.A.R. 92-19-66c, contractors, subcontractors, and repairmen are the final consumers of the …
Does an American Red Cross chapter owe Kansas sales tax on books it includes in the fee for its first-aid classes?
No. The Kansas Department of Revenue has historically treated the American Red Cross and its chapters as instrumentalities of the federal government that are exempt from Kansas retailers' sales tax. T…
Are sales of nutrition supplements taxable in Kansas?
Yes. Kansas sales and use tax law provides no exemption for the sale of nutrition supplements, so a company selling them must collect and remit Kansas sales/use tax on those sales under K.S.A. 79-3603…
How is Kansas sales tax applied to leases of tangible personal property, and when is a lease taxed as a sale instead?
It depends on the lease type. Under K.S.A. 79-3603(h), a true lease is taxed on the total of each lease payment as it comes due; Kansas has no provision letting a lessor prepay tax up front on a true …
Are admission charges to an ice skating rink taxable in Kansas, and who can buy admissions tax-free?
Admissions are generally taxable. Charges to admit organizations into an ice skating rink are subject to Kansas sales tax under K.S.A. 79-3603(e), which taxes admissions to places providing amusement,…
How does Kansas tax money converted from a traditional deductible IRA to a Roth IRA?
Kansas follows the federal rule. Kansas conforms to the federal treatment of converting a traditional deductible IRA to the new Roth IRA. For a conversion made in tax year 1998, the income is spread o…
How does Kansas tax a residential security company's monitoring fees, equipment, add-ons, installation, and repairs?
Monitoring is not taxed; the provider is the consumer of its gear. Because security monitoring is not an enumerated service under K.S.A. 79-3603, the residential provider does not charge tax on monito…
For a commercial security company, when is a system a taxable sale versus a non-taxable monitored service, and how is each taxed?
It depends on the contract. If a commercial customer buys the system outright, that sale is taxable and the monitoring fee is not (monitoring is not an enumerated service under K.S.A. 79-3603). If the…
Are theatre membership fees subject to Kansas sales tax?
Taxable. Under K.S.A. 79-3603(n), Kansas taxes the gross receipts from dues charged by clubs, organizations, and businesses when payment entitles a member to use of facilities for recreation or entert…
Which chemicals added to natural gas — odorants, dehydrating glycol, anticorrosion chemicals — are exempt from Kansas tax?
It depends on the chemical and the buyer. Odorants (capstan or thiophane) are an integral component of natural gas and are exempt no matter who buys them. Dehydrating chemicals like triethylene glycol…
Does the $2,500 alternative-fuel income tax credit cap apply per vehicle or to all alternative-fueled motor vehicle property?
The cap applies per qualified property expenditure. It is the opinion of the Department that the $2,500 cap ($2,000 on or after January 1, 1999) under K.S.A. 79-32,201 limits the tax credit for each q…
Does a 501(c)(3) nonprofit automatically get a Kansas sales tax exemption on its purchases?
No. Kansas does not extend a general sales tax exemption to not-for-profit organizations, so a 501(c)(3) center is exempt only if it fits one of the specific exemptions listed in K.S.A. 79-3606. The D…
Are internet charges to customers taxable in Kansas, and can an internet provider buy telephone lines for resale?
Internet charges to customers are not taxed, but the provider's telephone charges are. Because internet service is not enumerated in K.S.A. 79-3603, charges to customers for internet use are not subje…
Are labor services to repair residential pools and spas exempt from Kansas sales tax, and what about materials or shop repairs?
The on-site repair labor is exempt; materials and shop repairs are not. Under 1998 Senate Bill 493 (effective July 1, 1998), gross receipts from repair services on residential pools and spas are exemp…
Is a mobile paper shredding and recycling service subject to Kansas sales tax?
No. A company that shreds and recycles paper at customer locations asked whether its service is taxable. The Department ruled that the service is essentially trash removal, and Kansas does not tax tra…
Is leasing hard-drive space on a computer system for storing voice and fax messages subject to Kansas sales tax?
No. A business that leases space on its computer system's hard drive — used by customers to store voice or fax messages that callers can access — asked whether the charge is taxable. The Department ru…
Does a catering business have to collect Kansas sales tax, and how is the tax sourced when food is delivered across state lines?
Yes. A catering business is a retailer that must collect Kansas retailers' sales tax on the total gross receipts from the food, meals, and drinks it caters. The tax is sourced to where the food and se…
Is a church's telephone service exempt from Kansas sales tax, and how does the church claim the exemption?
A church's telephone service used exclusively for religious purposes is exempt from Kansas retailers' sales tax under K.S.A. 79-3606(aaa), which exempts purchases by a 501(c)(3) religious organization…
Which buyers of horse feed can purchase it exempt from Kansas sales tax, and which exemption certificate applies?
It depends on the buyer. Horse feed can be bought exempt from Kansas sales tax by a feed dealer buying for resale, a horse breeder that will sell the offspring, a livestock operator feeding horses int…
Can a church buy its utilities free of Kansas sales tax, and what if the utility serves both exempt and taxable uses?
Yes, when used exclusively for religious purposes. Under K.S.A. 79-3606(aaa), a 501(c)(3) religious organization's purchases used exclusively for religious purposes — including utilities — can be boug…
Does a company owe Kansas sales tax when it only supervises subcontractors versus when its own employees perform the taxable labor?
It depends on who does the work. Where the company merely provides an employee to supervise taxable labor performed by subcontractors, it owes no Kansas sales tax on those receipts — the subcontractor…
How does a Kansas religious organization claim its sales tax exemption, and does it cover fuel or out-of-state purchases?
A religious organization claims the exemption with a certificate, not an exemption number, by giving vendors a completed exemption certificate for qualifying purchases under K.S.A. 79-3606(aaa). The e…
If I list my Kansas house for sale, can the county appraiser use my asking price as the property's taxable value?
Not on its own. The Kansas Division of Property Valuation directs that a county appraiser 'shall not use the listing price of property as the sole criteria for determining the fair market value of pro…
Does an organization qualify as a Kansas 'religious organization' exempt from sales tax if it lacks an established place of worship?
No. To qualify for the Kansas religious-organization sales tax exemption under K.S.A. 79-3606(aaa), a group must gather in common membership for worship at an established place of worship it maintains…
Can a tribe get a Kansas exemption for its government center construction, and how should it proceed?
The request is premature. Rather than rule on whether the tribe's government center qualifies for the K.S.A. 79-3606(cc) exemption, the Department directed the tribe to apply for a project exemption c…
Are materials a contractor buys for a residential remodeling project subject to Kansas sales tax, and when is the tax due?
Yes. In Kansas a contractor is the final user of the materials it uses on a residential remodeling project, so those materials are subject to sales tax on their cost. A contractor pays the tax when it…
Are sales made by or on behalf of a PTA or PTO exempt from Kansas sales tax, and does the exemption cover services?
Goods sold by or on behalf of a parent-teacher association or organization — such as wrapping paper or candy bars sold by schoolchildren for a PTA/PTO — are exempt from Kansas sales tax under K.S.A. 7…
Are a school's fundraising sales exempt when made on behalf of a parent-teacher association, and what about services?
Goods sold on behalf of a PTA/PTO are exempt; services and the school's own sales are not. Under K.S.A. 79-3606(yy), when a school sells tangible personal property — flowers, birdhouses, concessions, …
Does a 501(c)(3) endowment foundation that supports an educational institution qualify as an 'educational institution' for Kansas sales tax?
Yes. A 501(c)(3) foundation organized and operated exclusively to receive, hold, invest, and administer money and property as a permanent fund for the sole benefit of an educational institution qualif…
Does the residential remodeling labor exemption apply to the full amount a contractor bills the customer, or only to the underlying labor cost?
The exemption covers the full amount billed to the customer, not just the underlying labor cost. Under 1998 Senate Bill 493, effective July 1, 1998, labor services to install or apply property for the…
Is the retail sale of propane in 20-lb barbecue-grill tanks taxable in Kansas, and are the tank charges taxable too?
Yes. The retail sale of propane in 20-lb tanks — the kind used in outdoor barbecue grills — for residential use is subject to Kansas retailers' sales tax. The entire transaction is taxable, including …
Is labor to repair hail damage subject to Kansas sales tax, and does it matter whether the building is a residence?
It depends on the building. Hail is not among the casualties (fire, flood, tornado, lightning, explosion, earthquake) whose repair labor Kansas exempts, so labor to repair hail damage to a building or…
Does a nursing home count as a 'residence' for the Kansas sales tax exemption on residential construction and repair labor?
Yes. Under K.S.A. 79-3603(p), as amended by 1998 Senate Bill 493, installation or application labor services for the construction, reconstruction, restoration, remodeling, renovation, repair, or repla…
Does a nonprofit advocacy organization have to collect Kansas sales tax on the retail sales it makes?
Yes. A nonprofit advocacy organization that makes retail sales — here, selling items to raise awareness of the needs of children in Kansas — has no exemption from Kansas retailers' sales tax for those…
On a farmer's irrigation invoice, which well-drilling services, equipment, and materials are exempt from Kansas sales tax and which are taxable?
It depends on the item. The service of drilling a new water well is exempt, and services to assemble farm irrigation equipment are also exempt; the movable irrigation parts — pivot system, pumps, moto…
If two organizations merge to form a new entity, does the new entity inherit the predecessor's Kansas sales tax exemption?
No. The taxpayer asked whether a new entity formed by merging a national center with its local counterpart would receive the same K.S.A. 79-3606 sales tax exemption the predecessor organization held. …
Does a yoga instructor have to register and collect Kansas sales tax?
No — teaching yoga by itself is not a taxable activity. If a person's only activity is teaching yoga, they are not required to register as a Kansas retailer. But if they also sell tangible personal pr…
Is the retail sale of non-titled equipment that may be moved on highways subject to Kansas sales tax?
Yes. A retail sale of non-titled equipment — equipment that may be moved on highways but is not titled — is subject to Kansas sales or compensating (use) tax.
How does a Kansas retailer source sales tax on shipped and interstate sales, and when are backhoe services taxable?
Retail sales of stationery and greeting cards are taxable tangible personal property. For shipments, the sale is sourced to the place of delivery: delivery to a Kansas address is a Kansas sale (state …
Is installing or repairing a hot tub or spa at a residence exempt from Kansas sales tax, and what about the materials?
The labor to install or repair a hot tub or spa that is or will become a permanent fixture to real property at a residence is exempt from Kansas sales tax under the residential remodeling exemption. B…
Which parts of an agricultural irrigation system are exempt from Kansas sales tax as farm machinery, and which are taxable as real property?
It depends on the item. Movable irrigation equipment — the pivot system, pumps, motors, valves, column pipe, flowmeter, and similar parts — is exempt farm machinery and equipment under K.S.A. 79-3606(…
Are labor services on land improvements around a residence — driveways, fences, patios, pools — exempt from Kansas sales tax?
Yes, for land improvements that immediately surround and principally serve a residence. Under the residential remodeling exemption (K.S.A. 79-3603(p)(4), effective July 1, 1998), install/apply labor i…
Is Kansas sales tax due on tickets to performances held in Kansas, even if the tickets are sold elsewhere?
Yes, tax is due. Under K.S.A. 79-3603(e), Kansas imposes sales tax on the gross receipts from the sale of admissions to any place providing amusement, entertainment, or recreation services. Because th…
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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.