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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Which counties were added to the Rural Opportunity Zone program in 2014?
Kansas Notice 14-07 (July 1, 2014) explains that 2014 House Bill 2643 (Section 19) amended K.S.A. 2013 Supp. 74-50,222 to add four counties -- Cherokee, Labette, Montgomery and Sumner -- to the list o…
Did Kansas restore the disabled accessibility credit for homes and extend the business version?
Kansas Notice 14-06 (July 1, 2014) explains that 2014 Senate Bill 265 (New Section 5) reenacted the disabled accessibility credit for dwellings that had been repealed in 2012, effective for tax year 2…
Did Kansas bring back the adoption income tax credit, and how much is it?
Kansas Notice 14-05 (July 1, 2014) explains that 2014 Senate Bill 265 (New Section 4) reenacted the Kansas adoption credit that had been repealed in 2012, effective for tax year 2014 and later. A resi…
Can a Kansas taxpayer subtract unreimbursed expenses for donating a human organ?
Kansas Notice 14-03 (July 1, 2014) explains that 2014 Senate Bill 265 added a new subtraction modification, K.S.A. 79-32,117(c)(xxi), letting a taxpayer subtract from federal adjusted gross income the…
How does Kansas treat a minister's self-employment tax deduction after the 2014 change?
Kansas Notice 14-02 (July 1, 2014) explains that 2014 Senate Bill 265 amended K.S.A. 79-32,117(b)(xx) so that the required Kansas add-back of the federal self-employment tax deduction (IRC section 164…
What were Kansas's simplified electronic return policies under the Streamlined Sales and Use Tax Agreement?
Kansas accepts the Streamlined Sales and Use Tax Agreement's simplified electronic return. Agreement-registered sellers generally were not required to submit Part 2 exempt-sales data unless Kansas fir…
What surface mining machinery and equipment did Kansas exempt from sales tax in 2014?
Kansas Notice 14-16 (dated June 2014) explains that 2014 House Bill 2378 added new subsection (4)(F) to K.S.A. 2013 Supp. 79-3606(kk)(4), deeming exempt all machinery and equipment used in surface min…
What agricultural construction projects qualify for the new Kansas sales tax exemption?
Kansas Notice 14-13 (dated June 2014) explains that House Substitute for Senate Bill 265 created a new sales tax exemption, K.S.A. 2014 Supp. 79-3606(hhhh), effective July 1, 2014. It exempts sales of…
How does the Kansas tax credit for the low income students scholarship program work?
Kansas Notice 14-14 (May 1, 2014) explains that Senate Substitute for House Bill 2506 (Sections 55 through 61) created the Tax Credit for Low Income Students Scholarship Program. Beginning with tax ye…
Are portable corral panels, round-bale feeders, and livestock shelters a fabricator sells to Kansas farmers taxable?
It depends on the item and the buyer. Portable corral panels and portable round-bale livestock feeders sold to a farmer, rancher, or feedlot for production agriculture are exempt farm equipment under …
When a Kansas customer orders a custom-fabricated article billed in progress payments, when and on what amount does Kansas sales tax apply?
Sales tax applies to the full selling price of the finished article — including fabrication, materials, design, overhead, and shipping, with no deductions — but only when the completed article is deli…
Must a company that answers calls and gives advice for healthcare providers collect Kansas sales tax on those services?
Not taxable. The company's services to Kansas healthcare providers went beyond simply receiving, transferring, and answering phone calls — it also supplied qualified staff to give advice and answer pa…
Are a Kansas utility's late-payment fees and returned-check fees subject to sales tax?
Late fees yes; bounced-check fees no. A Kansas utility's late-payment fees ARE subject to sales tax and must be included in the tax base along with the other taxable utility charges (K.A.R. 92-19-3a(j…
Do Kansas composite returns recognize the 2012 income modifications for nonresident owners?
Kansas Notice 13-17 (September 12, 2013) addresses whether the 2012 modifications that exempt certain income from Kansas income tax are recognized on a composite return. Composite income tax returns f…
How does Kansas sales tax apply to pallets manufacturers buy or lease to store and ship their products?
It depends on the pallet and the exemption claimed. 'Nonreturnable' pallets and packing materials a manufacturer buys are exempt as an 'ingredient or component part' (a sale for resale) under K.S.A. 7…
What did the 2013 legislation change for Kansas motor fuel taxes and fees?
Kansas Notice 13-16 (approved July 17, 2013) summarizes three 2013 bills affecting motor fuel. Senate Bill 83 (effective April 25, 2013) raises the installment payment plan agreement fee to $25, adds …
Are separately billed set-up and pick-up charges on a taxable equipment rental subject to Kansas sales tax?
Yes, if the rental itself is taxable. Separately billed set-up, pick-up, delivery, and take-down charges on an equipment rental are part of the taxable lease price under K.S.A. 79-3602(ll)(1) and K.A.…
If a Kansas business adds a credit or debit card processing fee to a taxable service, is that fee subject to sales tax?
Yes. A line-item credit or debit card processing fee a retailer adds to a customer's bill is part of the taxable selling price and is taxed whenever the underlying goods or services are taxed (K.A.R. …
What did the 2013 legislation change for the Kansas mineral severance tax?
Kansas Notice 13-15 (July 1, 2013) summarizes 2013 mineral severance tax changes from House Bill 2059 and House Substitute for Senate Bill 83. Section 13 of HB 2059 amended the definition of 'gas' in …
What are the Kansas standard deduction amounts for 2013 and later?
Kansas Notice 13-14 (July 1, 2013), which replaces the revoked Notice 12-10, explains that Section 11 of 2013 House Bill 2059 amended K.S.A. 2012 Supp. 79-32,119 to reduce the standard deduction incre…
Which counties were added to the Rural Opportunity Zone program in 2013?
Kansas Notice 13-13 (July 1, 2013) explains that Section 9 of 2013 House Bill 2059 amended K.S.A. 2012 Supp. 74-50,222 to expand the Rural Opportunity Zone (ROZ) program, which began with 2011 Senate …
What replaced the Kansas food sales tax refund starting in 2013?
Kansas Notice 13-12 (July 1, 2013) explains that the food sales tax refund (K.S.A. 79-3633 through 79-3639) was repealed effective for tax year 2013 by 2012 Senate Substitute for House Bill 2117, and …
How are Kansas itemized deductions phased down starting in 2013?
Kansas Notice 13-11 (July 1, 2013), which replaces the revoked Notice 12-07, explains that 2013 House Substitute for Senate Bill 83 and House Bill 2059 confirmed individuals may elect Kansas itemized …
How did Kansas lower individual income tax rates starting in 2013?
Kansas Notice 13-10 (July 1, 2013), which replaces the revoked Notice 12-06, explains that Section 1 of 2013 House Bill 2059 amended K.S.A. 79-32,110 to lower individual income tax rates at all levels…
What tax changes did the 2013 Kansas abortion law (HB 2253) make?
Kansas Notice 13-03 explains the tax provisions of 2013 House Bill 2253, all effective for tax years commencing after December 31, 2013. Although New Section 2 declares (effective July 1, 2013) that l…
Is the Kansas liquor drink tax owed on free alcohol samples served by clubs and drinking establishments?
Kansas Notice 13-09 explains that 2013 House Bill 2199 (effective July 1, 2013) authorizes Class A clubs, Class B clubs, drinking establishments, hotels, and DE/Caterer and Hotel/Caterer licensees to …
Can Kansas motor fuel tax be refunded on diesel burned in a truck's diesel particulate filter 'regeneration' cycle?
No. Kansas motor fuel tax paid on diesel consumed in a diesel particulate filter's 'regeneration' cycle is not refundable. K.S.A. 79-3453 refunds fuel tax on fuel used 'for any purpose other than oper…
When did the Kansas state sales and use tax rate change to 6.15%, and how do transition rules apply?
Kansas Notice 13-08 (June 6, 2013), which revokes and replaces the erroneous Notice 13-07, explains that 2013 House Bill 2059 changed the Kansas state sales and use tax rate from 6.3% to 6.15% on July…
Must the Kansas expensing deduction be added back when figuring income for a homestead refund?
Kansas Notice 13-06 explains that the Kansas expensing deduction cannot be used to reduce 'income' for homestead property tax refund purposes. 'Income' for a homestead claim is defined in K.S.A. 79-45…
When must a remote retailer register and collect Kansas sales or use tax after the 2013 changes?
Kansas Notice 13-05 (May 2013) explains that Sections 9 and 18 of 2013 Senate Bill 83 expanded when certain remote retailers must register with the Department and collect and remit Kansas retailers' s…
Do S corporations with privilege-tax subsidiaries still add back Schedule E losses in Kansas?
Kansas Notice 13-04 explains that Section 3 of 2013 House Substitute for Senate Bill 83 amended the 2012 business-loss addition modification in K.S.A. 79-32,117(b)(xix). That 2012 provision (enacted b…
Did Kansas repeal the 2012 partner and S corporation basis rules?
Kansas Notice 13-02 explains that House Substitute for Senate Bill 83 (2013), Section 19, repealed K.S.A. 79-32,117n, the basis provision enacted by Section 37 of 2012 House Bill 2117. That 2012 provi…
Did Kansas waive the estimated tax penalty for farmers and fishers who filed by April 15, 2013?
Kansas Notice 13-01 explains that, because the IRS moved the March 1 filing deadline for farmers who do not pay estimated taxes back to April 15 for the 2012 return (IRS Announcement IR 2013-7, made J…
How did 2012 House Bill 2117 change the mineral severance tax new-pool exemption for oil and gas?
Revised Kansas Notice 12-02 (November 2012) explains how 2012 House Bill 2117 changed the mineral severance tax (K.S.A. 79-4217). Before July 1, 2012, the first 24 months of production of oil or gas f…
Is a returned-check (insufficient funds) fee on a utility bill subject to Kansas sales tax?
Not taxable. The Department ruled that a fee for a returned check due to insufficient funds (or a closed account) on a gas, electric, or heat utility bill is not subject to Kansas Retailers' Sales Tax…
Is the safety equipment an oil-well services company buys for its employees exempt from Kansas sales tax?
Taxable. Safety equipment that an oil-well services company buys and gives to employees — hydrogen sulfide monitors, hard hats, safety glasses, ear plugs, safety lanyards and harnesses, and flame-resi…
Can a Kansas installer honor an out-of-state sign company's multi-jurisdiction exemption certificate on its installation charges?
No — the Kansas installer cannot honor the out-of-state sign company's Multi-Jurisdiction Exemption Certificate (Form ST-28M) to exempt its taxable sign-installation charges. First, Form ST-28M is onl…
How does Kansas sales tax apply to discount promotions like BOGO deals and to Groupon-style deal certificates?
Tax follows what the customer actually pays — with special rules for give-aways and deal certificates. For discount promotions ('Two for the Price of One,' 'Buy One Get One Free,' 'percent off,' 'buy …
Are interior lights and exhaust fans (and the electricity they use) at a manufacturing plant exempt under Kansas's integrated-production exemption?
Taxable. The Department ruled that a manufacturer's purchase and installation of metal-halide interior lights and air-exhaust fans for its Kansas plant and warehouse — and the electricity those lights…
Is the labor to construct a new underground electrical 'duct bank' exempt from Kansas sales tax as original construction?
Taxable. The labor to construct a new underground electrical distribution 'duct bank' — a conduit and manhole system that protects and routes electrical wiring — is not exempt as 'original constructio…
When did Kansas's environmental assurance fee on petroleum products resume in 2012?
This Kansas Department of Revenue notice (approval date July 24, 2012) advises all Kansas Environmental Assurance Fee filers that, effective September 1, 2012, the environmental assurance fee of $.01 …
Are animal shelter adoption fees subject to Kansas sales tax?
Kansas Notice 12-15 (July 19, 2012) revokes Revenue Ruling 19-2012-01, dated June 15, 2012, which had stated that animal adoption fees charged by animal shelters are subject to retailers' sales tax. T…
Must a Kansas gun dealer collect sales tax on a firearm shipped in from an out-of-state seller and handed to a resident buyer?
No tax on the transfer — but the dealer's own retail sales are still taxable. A Kansas Federal Firearms Licensee (FFL) that simply receives a firearm shipped by an out-of-state seller and transfers it…
Can Kansas renters still claim the homestead property tax refund after HB 2117?
Kansas Notice 12-14 explains that 2012 House Bill 2117 repealed the homestead property tax refund for renters. Kansas law provides a partial refund of property taxes paid by low-income homeowners who …
Did Kansas repeal the food sales tax refund, and what was the last year to claim it?
Kansas Notice 12-13 explains that 2012 House Bill 2117, Section 40, repealed the food sales tax refund as of January 1, 2013. The refund had provided a refund of sales tax paid on food by low-income i…
How does HB 2117 keep S corporation bank shareholders from claiming two subtraction modifications for the same income?
Kansas Notice 12-12 explains how 2012 House Bill 2117, Section 12, coordinates two subtraction modifications for shareholders of S corporations that are banks, savings and loans, or federal savings as…
How does HB 2117 exempt certain business income from Kansas tax while adding back related losses and deductions?
Kansas Notice 12-11 explains that 2012 House Bill 2117, Section 12, added five new addition modifications in K.S.A. 79-32,117(b)(xix) through (xxiii) and one new subtraction modification in (c)(xx), e…
Did 2012 House Bill 2117 change the Kansas corporate income tax rates or C-corporation modifications?
Kansas Notice 12-09 explains that despite the many changes in 2012 House Bill 2117 -- most effective beginning tax year 2013 -- the Bill did not change the corporate income tax rates or the credits av…
After HB 2117, can Kansas individuals still deduct or carry net operating losses starting in 2013?
Kansas Notice 12-08 explains that under 2012 House Bill 2117, beginning in tax year 2013 the net operating loss deduction is eliminated for individuals. Section 17 amends K.S.A. 79-32,143 to add new s…
Which Kansas income tax credits became C-corporation-only in 2013, and can individuals still carry forward old unused credits?
Kansas Notice 12-05 explains that under 2012 House Bill 2117, beginning in tax year 2013 a long list of income tax credits is available only to corporations subject to the Kansas corporate income tax …
Which Kansas income tax credits and which subtraction modification did HB 2117 repeal starting in 2013?
Kansas Notice 12-04 explains that 2012 House Bill 2117 repealed certain income tax credits beginning in tax year 2013, so after tax year 2012 they are no longer available. Section 40 of the Bill repea…
Which Kansas income tax deductions did HB 2117 limit to C corporations starting in tax year 2013?
Kansas Notice 12-03 explains that, under 2012 House Bill 2117, beginning in tax year 2013 certain deductions are available only to corporations subject to the Kansas corporate income tax (C corporatio…
What did the 2012 Kansas Legislature change for motor fuel taxes and fuel-related funds?
Kansas Notice 12-01 (June 11, 2012) summarizes three 2012 motor fuel bills. Senate Bill 294 (effective June 7, 2012) set quarterly $50,000 deposits into the Kansas Qualified Biodiesel Fuel Producer in…
Is GPS-based precision-farming tower equipment exempt from Kansas sales tax as farm equipment?
Exempt. The GPS receivers, radios, antennas, cables, electrical boxes, and stand that make up a Real Time Kinematic (RTK) tower — used exclusively to send and receive signals for precision-farming gui…
How does Kansas sales tax apply to brine-impacted soil remediation and disposal services, and to the materials a remediation provider buys?
The services are nontaxable, but not all the materials are. The Department ruled that soil excavation is not taxable when its charge isn't lumped into a taxable installation charge, and that disposal …
How is a utility's outdoor 'dusk-to-dawn' area lighting service taxed for homes, farms, and businesses in Kansas?
Taxable as electric utility service — at different rates by use. A utility's outdoor 'dusk-to-dawn' Private Area Lighting Service is a charge for electricity under K.S.A. 79-3603(c). For commercial or…
Does Kansas sales tax apply to charges for hosted software, SaaS, or application service provider (ASP) services?
No. Charges for hosted software, software as a service (SaaS), or application service provider (ASP) services are not subject to Kansas sales tax. None of the services taxed under K.S.A. 79-3603 cover…
Are the labor to dispose of drilling dirt and the purchase of fly ash used in that disposal subject to Kansas sales tax?
The disposal service is not taxable, but the materials are. The Department ruled that the service to dispose of dirt excavated while drilling a deep disposal well is not a taxable service. However, an…
Are software licenses that only grant remote access to software hosted outside Kansas subject to Kansas sales or use tax?
Not taxable. The Department ruled that purchases of software licenses and support services are not subject to Kansas Retailers' Sales Tax or Consumers' Compensating Use Tax when the licenses only gran…
Must a private fixed-base operator on a federal installation collect Kansas sales tax on aviation fuel, and may its supplier accept a resale exemption?
Yes. A private fixed-base operator on a federal military base or other federal land must register and collect Kansas sales tax on taxable aviation-fuel sales; its location does not create an exemption…
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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.