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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Are fees for professional continuing-education seminars, webcasts, recorded CD-ROM seminars, and extra course materials subject to Kansas sales tax?
Credited professional continuing-education seminar charges were not taxable, including live telephone or webcast attendance with course materials. A bank could also buy a recorded CD-ROM tax-free when…
Are an early lease-termination payment and a capital-cost-reduction payment on a replacement vehicle lease subject to Kansas sales tax?
Yes. The $27,000 paid to terminate the first operating lease was the final taxable payment under that lease, and the $26,000 applied to reduce the new lease's capitalized cost was also taxable, as wer…
How does Kansas sales tax apply to equipment, replacement parts, and electricity sales for a Kansas wind farm?
Replacement parts and repair services for wind-farm equipment take the same sales-tax treatment as the underlying equipment: if the equipment purchase is exempt under K.S.A. 79-3606(kk), the parts and…
Are aircraft deicing services billed to commercial air carriers subject to Kansas sales tax, or exempt?
Taxable. Charges billed to commercial air carriers for aircraft deicing are taxable in Kansas as "application services" under K.S.A. 79-3603(p). None of the three possible exemptions applies: the 2004…
How does Kansas sales tax apply to a fire-sprinkler contractor's materials and labor across new construction, remodeling, service, and inspections?
Contractors pay Kansas sales or use tax as consumers on the materials and supplies they buy, and collect sales tax as retailers on taxable labor. All construction labor on residential property is exem…
Is USDA-required protective apparel (and processing machinery) taxable for a meat-cutting business, or exempt as integrated-production safety equipment?
Taxable. A meat cutting and butchering business is treated as a retailer, not an integrated production (manufacturing) operation, so it does not qualify for the integrated-production exception for saf…
Are sales of saddles, bridles, and other horse equipment subject to Kansas sales tax?
It depends on the use. Saddles, bridles, and other horse equipment are exempt from Kansas sales tax when sold for use in the production and care of cattle as part of an agricultural operation — but th…
Is a tour fee subject to Kansas sales tax when the tour is advertised primarily as sightseeing or entertainment?
Yes. When a ride or tour is advertised or otherwise presented primarily as sightseeing or entertainment, K.A.R. 92-19-22a(a)(6) treats the charge as a recreational or entertainment activity rather tha…
Is a dietary supplement subject to Kansas sales tax, or is it exempt?
It depends on how it is sold. A dietary supplement is exempt from Kansas sales tax only if it both meets the statutory definition of a "dietary supplement" and is dispensed pursuant to a prescription …
Are submittal drawings — engineering/CAD drawings similar to blueprints — subject to Kansas sales tax?
Not taxable. Submittal drawings — engineering or CAD drawings that map out a building control system, described as similar to a blueprint — are not subject to Kansas sales tax. The Department does not…
Could an oil-well customer rely on a 1970 Kansas bulletin to stop paying sales tax on well-site inspection and labor services?
No. The 1970 bulletin interpreted a law later held unconstitutional and replaced by the legislature, so K.A.R. 92-19-58 made the old guidance invalid. Current Revenue Ruling 19-2002-2 governed instead…
May an implement dealer sell a lawnmower tax-free to a dairy farmer who says it will be used only around the farm?
No. The agricultural machinery exemption required exclusive use in agriculture to produce products for resale. Mowing weeds or grass around a farm home, barn, storage building, or other area for fire …
Which Internet-service-provider charges were exempt or taxable in Kansas under the extended Internet Tax Freedom Act moratorium?
Kansas treated Internet access and telecommunications used to provide it, including qualifying DSL, as exempt under the federal moratorium. Home-page, email, messaging, video-clip, and personal-storag…
How does Kansas sales tax apply to a farm special-events business — barn rental, tables and chairs, catering, and horse-drawn carriage rides?
It depends on the charge. Renting the barn (a meeting/reception space) is not taxable, and tables and chairs bundled into that rental at no separate charge are not taxed either — the operator pays tax…
Did a federally funded $40 converter-box coupon reduce the amount subject to Kansas sales tax when the government reimbursed the retailer?
No. The federal $40 coupon did not reduce the taxable selling price because the retailer was reimbursed by the National Telecommunications and Information Administration. Kansas sales tax applied to b…
Are washable fiberglass-reinforced plastic wall panels installed in a food-manufacturing production area exempt as manufacturing equipment?
No. Fiberglass-reinforced plastic panels installed as washable walls in a cookie plant were taxable construction materials that became real property, not machinery or equipment used to transform raw m…
Must an employer collect sales tax on meals it sells to employees in a company cafeteria that is not open to the public?
Not required to collect from employees. Because the company cafeteria is not open to the public, the employer may elect to pay Kansas sales tax on its own food purchases rather than collect sales tax …
Were separately stated delivery charges for direct mail subject to Kansas sales or compensating-use tax?
No. Effective July 1, 2007, delivery charges for qualifying direct mail were excluded from Kansas sales and compensating-use tax when separately stated on the invoice or similar billing document. The …
Is a vegetable-oil product (CAP18) injected to remediate groundwater contamination at a manufacturing plant exempt from Kansas sales tax?
Exempt. A manufacturer's purchase of CAP18 — a vegetable-oil product injected into the aquifer to remediate and control trichloroethene (TCE) contamination under its plant — is exempt from Kansas sale…
Are electricity-generating peaking units purchased for a Kansas power plant exempt as manufacturing machinery and equipment?
Exempt. Electricity-generating peaking units purchased for a Kansas power plant qualify for exemption as manufacturing machinery and equipment under K.S.A. 79-3606(kk), because electricity power gener…
Are tarps bought by a farmer or rancher to cover harvested hay exempt from Kansas sales and compensating use tax as farm machinery or equipment?
Yes. The Kansas Department of Revenue concluded that a tarp purchased by a farmer or rancher and used to cover harvested hay qualifies for the farm machinery or equipment exemption from Kansas sales a…
Which fuel-wholesale, tank, testing, retrieval, delivery, and travel charges did Kansas treat as taxable sales or services?
Kansas treated tank filtration and maintenance, equipment cleaning, tank repair, most tank installation, tank delivery with a sale, tank leases, product delivery, and travel charges tied to taxable se…
Could a Kansas-registered drop shipper accept a resale certificate from an out-of-state seller that was not registered in Kansas?
Yes, beginning July 1, 2007. A Kansas-registered drop shipper could accept an out-of-state seller's home-state resale certificate or a multijurisdictional certificate even if the seller had no Kansas …
Does converting interior warehouse space with new walls, flooring, and a ceiling qualify as exempt 'original construction' labor in Kansas?
Taxable. Finishing a 50,000-square-foot interior warehouse space with new walls, flooring, and a ceiling to convert it to a different use does not qualify as the 'original construction' of a building,…
Are a church's sales of below-cost food through a grocery relief program exempt from Kansas sales tax?
Taxable. The Kansas exemption for below-cost food sold by a 501(c)(3) organization, K.S.A. 79-3606(bbb), applies only when the food recipient is required to perform community service in exchange for t…
Did Kansas's farm-machinery sales-tax exemption cover ATVs or work-site utility vehicles, and how were interstate sales treated?
ATVs did not qualify for Kansas's farm machinery and equipment exemption, including their parts and repair labor. A defined work-site utility vehicle with a bed or cargo box could qualify — along with…
Does breeding horses for resale qualify for Kansas agricultural sales-tax exemptions, and must the breeder collect tax on horse sales?
Yes, generally. Breeding horses for resale qualifies as agricultural for Kansas sales-tax purposes, so the breeder's purchases of breeding stock and the feed and supplements for that breeding stock ar…
Is a sale of protective safety leggings to a meat-packing company exempt under Kansas's integrated plant (manufacturing) exemption?
Yes. The sale of safety leggings to a meat-packing company is exempt under the integrated machinery and equipment (integrated plant) exemption, K.S.A. 79-3606(kk). Although K.S.A. 79-3606(kk)(5)(J) ta…
Is the sale of a house that the buyer plans to relocate subject to Kansas sales tax?
No. Even though the buyer intends to move the house to another location, the Kansas Department of Revenue treats the building as real property at the time of the sale. Because a sale of real property …
How does Kansas sales and use tax apply to an electric-sign fabricator's sales, set-up, construction, and repair charges?
A custom sign maker is treated as a fabricator and retailer. It buys sign materials for resale and collects Kansas sales (or retailers' use) tax on the full price billed for the sign, including delive…
Does a utility-scale Kansas wind farm qualify for the manufacturing machinery and equipment sales-tax exemption?
Yes, for the generating equipment. A utility-scale turbine wind farm qualifies as a manufacturing plant or facility under K.S.A. 79-3606(kk), so the generators, blades, support towers, the power lines…
Must Kansas sales tax be charged when an equipment lessor separately bills a lessee for reimbursement of the lessor's property tax?
Yes. When an equipment lease requires the lessee to reimburse the lessor for property tax the lessor paid, that reimbursement is part of the total lease payment and is subject to Kansas sales tax. K.A…
Can a document-management company buy scanners and imaging equipment exempt from Kansas sales tax under the manufacturing exemption?
No. A document-management company must pay sales or use tax on the scanners, microfilm and imaging equipment, film, and chemicals it buys. Ongoing document-management is a nontaxable service, so the c…
When did a manufacturer's cash rebate reduce the taxable price of a new motor vehicle purchased or leased in Kansas?
For a new motor vehicle sold or leased from July 1, 2006 through June 30, 2009, a manufacturer's cash rebate was excluded from Kansas sales and compensating-use tax only when the manufacturer paid it …
Can a contractor with a project exemption certificate buy drill bits, saw blades, and utility-knife blades exempt from Kansas sales tax?
No. A contractor's replaceable drill bits, saw blades, and utility-knife blades are taxable even when they will be used up on a project covered by a project exemption certificate (PEC). Every PEC stat…
When did a work-site utility vehicle qualify for Kansas's farm-machinery sales-tax exemption, and did the exemption cover ATVs?
Effective July 1, 2006, a defined work-site utility vehicle with a bed or cargo box could qualify for Kansas's farm machinery and equipment exemption when used only in listed farming, ranching, aquacu…
Is an interstate pipeline company's electricity for cathodic protection and for underground gas storage subject to Kansas sales tax?
Both are taxable. Electricity an interstate pipeline company uses to power cathodic (corrosion-protection) equipment is taxable because cathodic protection is not a production, mining, drilling, or re…
Are charges for telephone service at a church parsonage subject to Kansas sales tax?
Yes. Charges for telephone service at a parsonage, rectory, convent, or minister's residence are taxable. Following Notice 99-14, utilities for such residences are not purchases used exclusively for r…
Are separately stated concrete-pumping charges taxable, and how does Kansas tax pumping performed as part of a mine-reclamation contract?
Separately stated concrete-pumping service was not taxable when the pumping company did not sell the concrete and merely placed it for the contractor. But a company responsible for part or all of a co…
Are a manufacturer's radial fatigue testing machine and the test consumables discarded after testing exempt from Kansas sales tax?
Yes, both are exempt. The radial fatigue machine used to test the quality of the finished aircraft wheels is exempt integrated-production equipment under K.S.A. 79-3606(kk)(3)(E), which covers machine…
How does Kansas sales tax apply to a nonprofit youth-development organization's fundraising events, sponsorships, and auctions?
It depends on what is sold. Because the organization holds a Kansas exemption as a nonsectarian comprehensive multidiscipline youth-development program under K.S.A. 79-3606(ii), its purchases for the …
Can a retail store buy cardboard compacting and baling equipment exempt from Kansas sales tax as manufacturing equipment?
No. A retail store's purchase of compacting and baling equipment is taxable. Under K.S.A. 79-3606(kk), only businesses that operate what the public regards as an industrial production operation qualif…
Is a separately stated premium for Guaranteed Auto Protection insurance subject to Kansas sales tax?
No. Kansas treated Guaranteed Auto Protection coverage as insurance rather than a taxable sale. A GAP premium charged to a vehicle buyer or lessor was not subject to Kansas sales tax when the charge w…
Must an independent retailer operating on a Kansas military base under an AAFES concession contract collect Kansas sales tax?
Yes. The Department concluded that an independent AAFES concessionaire was not an instrumentality of the federal government or armed forces and therefore did not share the sales-tax immunity of an AAF…
Are Guaranteed Auto Protection (GAP) premiums subject to Kansas sales tax?
No. The Kansas Department of Revenue treats a Guaranteed Auto Protection (GAP) premium as the sale of insurance, which is not a sale of tangible personal property or a taxable service. Therefore the G…
Are sales of restaurant equipment to American Legion and VFW posts exempt from Kansas sales tax?
Taxable. A seller must collect Kansas sales tax on restaurant equipment it sells to American Legion and VFW posts. The 1998 exemption only relieved members from tax on their membership dues (K.S.A. 79…
Is a trash-disposal company's recycling equipment exempt from Kansas sales and use tax as manufacturing equipment?
No. Even though Missouri exempts this company's recycling equipment as a 'Recovery Facility,' Kansas taxes it. The integrated production (manufacturing) exemption in K.S.A. 79-3606(kk) applies only to…
Does the Kansas manufacturing machinery and equipment exemption apply to the equipment in a natural gas producer's gathering systems, booster stations, and compressor stations?
Mostly no. The manufacturing machinery and equipment (integrated plant) exemption in K.S.A. 79-3606(kk) does not reach the equipment in a natural gas producer's gathering systems, booster stations, or…
Are charges for criminal background-check services subject to Kansas retailers' sales tax?
No. Kansas taxed sales of tangible personal property and only the services enumerated in its retailers' sales tax act. Criminal background checks were not an enumerated service, so the business's paym…
Are massage therapy services subject to Kansas sales tax?
No. Kansas sales tax is not imposed on charges for massage therapy services. Kansas taxes sales of tangible personal property and only the specific services listed in K.S.A. 79-3603, and massage thera…
Did Kansas cities and counties impose local sales tax on piped water sold for residential noncommercial or agricultural use after January 1, 2006?
No. Effective January 1, 2006, public water suppliers stopped collecting Kansas city and county retailers' sales tax on water delivered through mains, lines, or pipes for residential noncommercial or …
Must a nonprofit shelter collect Kansas sales tax on its annual fundraiser's admissions, food, and auction sales?
Yes. Most Kansas nonprofits, including this community shelter, are not exempt from the sales tax act, so the shelter must pay tax on its purchases and collect tax on its taxable sales. Because it hold…
Which Kansas state and local sales-tax rate should an online retailer collect when goods are shipped to a Kansas customer?
Kansas used destination-based sourcing. A Kansas retailer shipping goods to a Kansas buyer collected the combined state and local rate at the ship-to address; if the buyer took possession at the retai…
Does the Kansas motor-vehicle and trailer exception for an entity's transfer of all assets apply when only its Kansas assets are transferred?
No. The exception in K.S.A. 79-3603(o)(2) applied only when one corporation or LLC transferred all of its assets to another corporation or LLC. Transferring every asset located in Kansas was not enoug…
Are infrared thermographic scanning services and the written reports provided with them subject to Kansas sales tax?
No. Infrared thermographic scanning was not an enumerated taxable service, and the explanatory report was incidental to that nontaxable service. The provider therefore did not collect tax from custome…
How does Kansas sales tax apply to an auto retailer's various charges — warranties, tire fees, core charges, coupons, labor, and warranty repairs?
It varies by charge. The Department ruled that road-hazard warranties (K.S.A. 79-3603(r)), tire recycling/disposal fees, core charges, and general merchandise like clothing, food, and soda (all under …
May a retail copy-and-duplicating service buy or lease copiers and binding machines tax-free under Kansas's integrated production exemption?
No. Purchases and leases of copiers, binding machines, and other production equipment by a retail copying service were subject to Kansas sales and use tax. The integrated production exemption in K.S.A…
Can the manufacturing machinery and equipment exemption apply to electrical work on a main breaker that powers production equipment?
Yes, with one exception. Work on a main breaker that supplies power to production machinery can qualify for the manufacturing machinery and equipment exemption, because K.S.A. 79-3606(kk)(3)(I) treats…
Is an out-of-state company's electronic medical-billing service subject to Kansas sales or use tax?
No. An out-of-state company that prepares a provider's medical billings electronically and submits them electronically to insurers — producing no paper invoices — is providing a service that is not su…
How is a direct-selling company's Kansas sales tax sourced when distributors pick up orders at its fulfillment center versus having them shipped?
It depends on delivery. When in-state and out-of-state distributors pick up their packages at the company's Kansas regional distribution (fulfillment) center, the pick-up point is the situs of the sal…
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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.