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 the 1995 federal restraining order affect Kansas motor fuel tax on sales to certain tribes?
On October 5, 1995, Federal District Judge Dale Saffels issued an order temporarily restraining the Kansas Department of Revenue from collecting tax from distributors who sell motor fuel to the Iowa, …
When are motor vehicle sales between family members exempt from Kansas sales tax?
Beginning July 1, 1995, sales of motor vehicles between immediate family members are exempt from Kansas sales tax. 'Immediate family members' are lineal ascendants and descendants and their spouses --…
What dry cleaning environmental surcharge and solvent fee did Kansas start charging on July 1, 1995?
Beginning July 1, 1995, the Kansas Dry Cleaner Environmental Response Act required dry cleaning and laundry retailers to collect an environmental surcharge of 2% of gross receipts from dry cleaning or…
How did House Bill 2077 re-enact and change Kansas instant bingo rules in 1995?
After the Kansas Supreme Court declared the 1993 instant bingo laws unconstitutional and Kansas voters approved a constitutional amendment permitting instant bingo in April 1995, House Bill 2077 re-en…
How does House Bill 2161 relieve Kansas school buses from motor fuel tax?
House Bill 2161, effective July 1, 1995, helps school districts and nonpublic schools with motor fuel tax on fuel for their buses. A 'school bus' (per K.S.A. 8-1406) is a bus privately owned and contr…
What Kansas state and local use tax did out-of-state vehicle lessors collect beginning August 1, 1994?
For vehicle lease payments billed on or after August 1, 1994, an out-of-state dealer or lessor had to collect Kansas state compensating use tax and local compensating use tax when the leased vehicle w…
Which supplies could Kansas auto body and repair shops buy tax-free, and which remained taxable?
Kansas auto dealers and body or repair shops could buy qualifying items tax-free when the items were consumed in providing a taxable repair service or became a component of the repaired vehicle, and t…
When a leased vehicle is sold (for example, the lessee buys it at the end of the lease), who collects the Kansas sales or use tax?
It depends on whether the seller is a licensed Kansas vehicle dealer. A lessor that holds a valid Kansas Vehicle Dealers License (under K.S.A. 8-2403) collects the Kansas sales tax on the purchase pri…
Did Kansas bingo licensees collect sales tax or bingo enforcement tax on instant bingo tickets?
Kansas bingo licensees selling instant bingo tickets, or pull tabs, had to collect Kansas state and local retailers' sales tax on those sales. The instant tickets were not subject to the separate 3% b…
What public water supply fee applied to Kansas retail water sales beginning January 1, 1993?
Beginning January 1, 1993, Kansas imposed a public water supply fee of $0.002 per 1,000 gallons of water sold at retail. The new fee was added to the existing $0.03-per-1,000-gallon water protection f…
Are federal military Survivor Benefit Plan payments to a service member's survivors subject to Kansas income tax?
No -- they are exempt from Kansas income tax. This 1993 internal memo addresses the federal Survivor Benefit Plan, under which a retired armed-services member can elect to take less monthly retirement…
How did Kansas define a disruption of oil or gas production for mineral severance tax?
For Kansas mineral severance tax, 1992 Senate Bill 216 defined an oil production disruption as a continuous 24-hour period when a well did not produce, and a gas disruption as a continuous one-hour pe…
Are telephone and telegraph services in Kansas subject to sales tax, and starting when?
Yes, as of June 1, 1992. The 1992 Kansas Legislature enacted House Bill 2892 (the "School Finance Bill"), which for the first time taxes the sale of telephone and telegraph services that originate and…
When does someone become a Kansas resident who may be required to register a vehicle in a county?
When they establish a domicile there -- and living in a county for 90 days creates a rebuttable presumption of it. This 1992 Division of Vehicles memo interprets the Kansas residency requirements in K…
What tire and short-term vehicle-rental tax changes took effect in Kansas on July 1, 1991?
Effective July 1, 1991, House Bill 2407 broadened the $0.50 tire excise tax to more highway vehicles and to tires mounted on new vehicles at first retail sale. Senate Bill 14 imposed a 3.5% excise tax…
Which new tires became subject to Kansas's $0.50 tire excise tax on July 1, 1991?
Effective July 1, 1991, Kansas's $0.50 tire excise tax applied to new tires for any vehicle within the broadened K.S.A. 8-1485 highway-vehicle definition and to tires mounted on a new vehicle at its f…
How did Kansas's 3.5% short-term vehicle rental excise tax work beginning July 1, 1991?
Effective July 1, 1991, Kansas imposed a 3.5% excise tax on gross receipts from motor-vehicle rentals or leases lasting 28 days or less, in addition to state and local sales tax. The base included the…
Which league, tournament, admission, and sports-participation charges were taxable in Kansas?
Kansas taxed fees charged by private clubs, organizations, and businesses for participation in sports, games, and recreation, including league or tournament fees collected from individuals or teams. A…
When could Kansas schools file their second-quarter 1991 sales-tax return?
A public or private primary or secondary school could file its second-quarter 1991 state and local sales-tax return when the school year closed or any time before July 25, 1991. The Department sent an…
Could Kansas sales of all-terrain vehicles or dirt bikes qualify for the farm-machinery exemption?
No. Kansas specifically excluded all-terrain vehicles from farm machinery and equipment, and the Department applied the same result to dirt bikes. A purchaser could not issue, and a retailer could not…
Does a buyer of a tractor or trailer that will be leased to an ICC-authorized motor carrier have to pay Kansas sales or use tax?
Usually yes, but there are two exceptions. As a rule the buyer of a tractor and/or trailer pays Kansas retailers' sales tax at purchase, or consumer's compensating use tax when the vehicle is register…
Were Kansas sports league, tournament, admission, and fundraising receipts taxable in 1990?
Kansas taxed private league and tournament participation fees whether collected from individuals or teams. Gate admissions, concessions, merchandise, and fundraising sales were also taxable. Participa…
When was the Kansas water protection fee excluded from state and local sales tax?
Beginning July 1, 1990, Kansas excluded the water protection fee from state and local retailers' sales tax when the water retailer separately stated the fee on the customer's bill. If the retailer abs…
How are vehicles from a second stage manufacturer or second stage converter titled and registered in Kansas?
Through the manufacturer's certificate of origin, with specific title-application details. This Division of Vehicles memo defines a 'second stage manufacturer' (one who affixes a body, cab, or special…
What forms had to accompany a Kansas utility sales-tax refund request beginning in 1990?
A Kansas retailer of electricity, gas, or water requesting a sales-tax refund had to submit completed supplemental schedule Form BT/st-33 together with exemption certificate Form STD-28B. The Departme…
When were Kansas monthly oil and gas production reports due, and what late penalty applied?
Purchasers of Kansas crude oil and natural gas filed monthly production reports with the Department of Revenue by the last day of the first month after each production month. K.S.A. 79-4225(b) imposed…
How much motor fuel tax can Kansas garbage and solid waste disposal truck operators claim as a non-highway exemption?
The Department determined that operators of trucks designed, equipped, and used exclusively for garbage, refuse, or solid waste disposal may treat 35% of the fuel used in those trucks as exempt from f…
Are the amounts a bank charges its customers for printing checks subject to Kansas sales tax, and who collects it?
Yes. Effective February 1, 1988, the total amount a bank, savings and loan, credit union, or other thrift institution charges its customers for the printing and delivery of checks is subject to Kansas…
Are the charges a bank or credit union bills its customers for printing and delivering checks subject to Kansas sales tax?
Yes. Effective February 1, 1988, the full amount a bank, savings and loan, credit union, or other thrift institution charges its customers for printing and delivering checks became subject to Kansas R…
How is Kansas sales or compensating tax collected on boats, especially boats bought out of state, after 1987 Senate Bill 195?
Under 1987 Senate Bill 195, effective July 1, 1987, a boat owner had to show proof that sales or compensating tax was paid before the Fish and Game Commission would process a boat-number application. …
Are sales of gold, silver, precious-metal coins, and bullion by banks, coin dealers, and pawn shops subject to Kansas sales tax?
Yes. Kansas determined that retail sales of gold, silver, precious-metal coins, and similar items — including Canadian Maple Leafs, American Eagles, South African Krugerrands, and gold and silver bull…
How did 1984 legislation change the Kansas severance tax exemptions for natural gas, crude oil, and new pools?
It clarified three exemptions. In this 1984 memo to Kansas natural gas and crude operators, the Mineral Tax Bureau explains minor 1984 legislative changes to the severance tax law: (1) the $81-a-day n…
Does the Kansas exemption for a vehicle or aircraft sold to an out-of-state resident cover trailers, and what must the dealer keep on file?
The K.S.A. 79-3606(k) exemption covers only a 'motor vehicle' or aircraft sold and delivered in Kansas to a bona fide resident of another state, not to be registered in Kansas and not remaining in the…
Is motor fuel burned off-highway in land-improvement and construction work subject to Kansas sales or use tax, and when is it exempt?
Yes. Motor fuels (gasoline, gasohol, diesel, and L-P gas) consumed off-highway in equipment building farm ponds, terraces, waterways, grading, landscaping, or preparing building sites were subject to …
Is a charge for grooming a pet subject to Kansas sales tax, and is there any exception?
Yes. Under a 1977 amendment to K.S.A. 79-3606(p), pet shop operators and others who perform pet grooming services must collect and remit Kansas sales tax on the gross receipts from those charges. The …
Did Kansas withdraw its earlier guidance about charging sales tax on debt-service-retirement charges on rural water district bills?
Yes. In this notice dated December 18, 1974, the Kansas Department of Revenue told Kansas rural water districts to disregard the Department's earlier notice of November 25, 1974, which had addressed a…
Are freight and transportation charges on a taxable sale delivered to a Kansas customer part of the taxable selling price?
Yes. Since July 1, 1971, both interstate and intrastate freight and transportation charges made in connection with the taxable sale of tangible personal property, for delivery to the ultimate user or …
Do growers of Christmas trees have to collect Kansas sales tax when they sell trees directly to consumers?
Yes. Producers of Christmas trees are liable for collecting Kansas retail sales tax on all trees sold directly to the final consumer. A common misinterpretation is that items produced and sold on the …
What sales must Kansas private and public clubs collect sales tax on — dues, bingo, admissions, concessions, food, and merchandise?
Kansas private and public clubs must collect and pay sales tax on: membership dues that entitle the member to use club facilities for recreation or entertainment (effective July 1, 1971); gross receip…
Does the Soldiers and Sailors Civil Relief Act exempt a serviceman from Kansas sales tax when titling a car in Kansas?
No. The Kansas Department of Revenue determined that the Soldiers and Sailors Civil Relief Act does not grant relief from Kansas sales tax on a serviceman's purchase of an automobile. A serviceman may…
Does Kansas sales tax apply to a utility late-payment charge, and how do prompt-payment discounts affect the taxable amount?
Yes. Effective July 1, 1971, when a customer pays an additional amount for failing to pay within a prescribed period for a taxable sale of gas, water, electricity, or heat, Kansas sales tax applies to…
When does a Kansas school have to collect sales tax, and when are its own purchases exempt?
It depends on whether the school is selling to others or buying for itself. This Department memo tells Kansas schools to collect and report sales tax on sales to students of books, manuals, workbooks,…
After Kansas repealed tax on original-construction labor, which contractors still needed sales-tax registration?
Kansas repealed the 2.5% state sales tax on original-construction labor effective April 15, 1995. After reporting any outstanding 2.5% tax, contractors no longer used the special BT/st-46C return and …
When was federal excise tax excluded from the Kansas sales-tax base?
Kansas excluded federal excise tax from taxable gross receipts when it was separately stated on sales of passenger vehicles, heavy trucks and trailers, boats, aircraft, jewelry, and furs. The same tre…
When were Kansas retail herbicide sales and application services exempt from sales tax?
Kansas exempted retail herbicide sales and application services when the herbicide was sprayed or applied to crops, cropland, pasture grass, or rangeland grass used to graze commercial livestock. The …
Do nonprofit organizations and associations owe Kansas sales tax on their purchases, and must they collect sales tax when they sell items?
Kansas has no general sales-tax exemption for nonprofit organizations or associations. Unless a group is specifically exempt under the Sales Tax Act, it must pay sales or compensating tax on the tangi…
Are fees a city or other Kansas political subdivision charges to play sports or use recreation facilities subject to sales tax, and what about spectator admissions?
Effective May 1, 1978, fees and charges made by Kansas political subdivisions for participation in sports, games, and other recreational activities are exempt from state and local sales tax. The exemp…
When did Kansas's former pick-up and stand-alone estate taxes finally sunset?
Kansas's pick-up estate tax covered deaths after June 30, 1998 and before January 1, 2007, but only when a return was filed before January 1, 2017. Its stand-alone estate tax covered deaths after Dece…
Does Kansas estate tax apply when the decedent died on or after January 1, 2010?
No. Kansas Notice 10-07 states that no Kansas estate tax applies to estates of decedents dying after December 31, 2009, and the Department will not process estate-tax returns for those estates. The la…
How did the Notice 10-03 worksheet calculate the ST-36 deduction for July 2010 sales taxed at the old 5.3% state rate?
The worksheet reports all July 2010 gross sales by destination, then multiplies qualifying old-rate sales in each jurisdiction by the Department's old-rate/new-rate factor. In the example, $8,500 of T…
When can a nonresident military spouse exclude Kansas service income?
A military spouse's Kansas income from services could be exempt beginning in tax year 2009 when the servicemember was in Kansas under military orders, the spouse lived in Kansas solely to be with the …
How were retailers supposed to handle Kansas's replacement tax-exempt entity certificates?
Retailers could honor an existing tax-exempt entity certificate until its printed expiration date, but had to obtain the replacement certificate as exempt customers made purchases. New certificates be…
Was the federal Cash for Clunkers allowance included in the Kansas taxable price of a new vehicle?
No. Kansas treated the $3,500 or $4,500 Cash for Clunkers allowance as a trade-in allowance, excluding it from the new vehicle's sales price for Kansas retailers' sales tax and compensating use tax.
How did 2009 House Bill 2365 reduce Kansas tax credits for tax years 2009 and 2010?
For tax years 2009 and 2010, many nonrefundable credits were limited to the lesser of 90% of the credit and 90% of pre-credit tax liability; listed refundable credits were limited to 90% of the curren…
What deadline applied to Kansas sales and use tax refund claims filed after June 15, 2009?
Kansas sales and use tax refund or credit claims filed after June 15, 2009 generally had to be filed within one year from the due date of the return containing the overpayment. Claims filed on or befo…
Were manufacturer rebates on new motor vehicles excluded from Kansas sales tax after June 30, 2009?
No. The temporary exclusion for manufacturer cash rebates paid directly to a retailer on a new motor-vehicle sale or lease ended June 30, 2009. Effective July 1, 2009, all manufacturer rebates on new …
When did Kansas relieve sellers or purchasers from sales- or use-tax liability caused by short-notice rate changes or erroneous Department data?
Kansas gave limited relief in two situations. When a sales- or compensating-use-tax rate change took effect less than 30 days after enactment, a seller was not liable for using the immediately precedi…
When must a Kansas employer file the annual withholding tax return (Form KW-3), and how are the KW-5 deposit reports completed?
Every currently registered Kansas employer must file the Kansas Employer's Annual Withholding Tax Return (Form KW-3) by the last day of February of the year following the taxable year, filed together …
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.