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 labor and materials to repair a flood-damaged spillway subject to Kansas sales tax?
Taxable — both labor and materials. Kansas taxes the labor of installing or applying tangible personal property under K.S.A. 79-3603(p), with an exception for original construction, which includes res…
What purchases can a Kansas county make exempt from sales tax, and does the exemption cover hotel/transient guest tax?
A Kansas county's direct purchases used exclusively for political-subdivision purposes are exempt from state and local sales tax under K.S.A. 79-3606(b) — covering utilities, telephone service, vehicl…
Under Kansas destination-based sourcing, where is sales tax charged on an event admission ticket?
To the event's location. Under Kansas's destination-based sourcing rules (2003 House Bill 2005, effective July 1, 2003), a ticket to a game or entertainment event is sourced to where the event takes p…
Which state and local sales and use tax revenues from retailers in a redevelopment district could be pledged to repay special-obligation bonds?
All state sales and use tax collected by retailers doing business in the redevelopment district could be used to retire the special-obligation bonds. Local sales tax could be used when the sale occurr…
Under Kansas destination-based sourcing, is a shipped gift taxed at the store's location or the recipient's location?
At the recipient's (donee's) delivery location. Under Kansas's destination-based sourcing rules (Section 16 of House Bill 2005, effective July 1, 2003), if a customer takes possession of a gift basket…
When a seller's employee delivers a product to the customer, is Kansas local sales tax charged at the store's rate or the customer's location rate?
The customer's location rate. Under Kansas's destination-based sourcing rules (2003 House Bill 2005), because the seller's own employees deliver the product to the customer, the state and local sales …
Are admission charges to a Kansas church camp exempt from retailers' sales tax?
They can be. K.A.R. 92-19-22a(c)(8) excluded charges for church camps and religious retreats operated exclusively for religious purposes and exempt under K.S.A. 79-3606. The Department said admissions…
Are vehicle rentals and property sales paid for by an insurance company subject to Kansas sales tax, and is a free loaner vehicle taxable?
Taxable when paid for; not taxable when free. Sales of tangible personal property and vehicle rentals billed to or paid for by an insurance company are subject to Kansas sales tax, because there is no…
Does a community federation or umbrella organization qualify as a tax-exempt 'religious organization' under the Kansas sales tax act?
No. A community federation or umbrella organization that supports a religion — but is not itself a church, synagogue, or mosque and is not made up exclusively of such congregations — does not qualify …
How is a publisher of free community magazines taxed on printing costs, advertising sales, and bartered ad space in Kansas?
As the final consumer of a free publication, the publisher owes tax on the printing. Under K.A.R. 92-19-12(d), a company that prints and distributes magazines free of charge is the final user of the m…
Are crane services taxable in Kansas, and how does renting a crane with or without an operator affect the tax?
It depends on what the contract requires. Crane services that only lift property and set it in place are not installation or application services and are not subject to Kansas sales tax. But if you co…
Are sales of weed barrier fabric used for soil conservation subject to Kansas sales tax?
Yes, weed barrier fabric is subject to Kansas sales tax. The soil-erosion exemption (K.S.A. 79-3606(mm)) is limited to seeds and seedlings, fertilizers, pest-control chemicals, and services — it does …
Is a charge for computerized handwriting analysis at a fair booth subject to Kansas sales tax?
No. Charges for computerized handwriting analysis are not subject to Kansas sales tax. It is not a taxable amusement admission (K.S.A. 79-3603(e)), not a fee for participation in sports, games, or rec…
Can sandblast sand consumed on an exempt construction project be purchased free of Kansas sales tax with a project exemption certificate?
Yes. Sandblast sand can be purchased exempt from Kansas sales and use tax with a valid project exemption certificate, because the sand is consumed on an exempt project. Under K.S.A. 79-3606(d), when a…
Does a charitable educational corporation qualify for a Kansas sales tax exemption on its purchases?
No. A charitable educational corporation that raises funds to support public and community education does not qualify for a Kansas sales tax exemption on its purchases. Kansas grants only certain spec…
Does a religious organization carrying out a church's ministry qualify for the Kansas sales tax exemption, and how must exempt purchases be made?
Yes. A religious organization that is exempt under I.R.C. 501(c)(3) and carries out the ministry of the church meets the criteria in Notice 99-14 and qualifies for the Kansas sales tax exemption under…
Must a school collect Kansas sales tax on gift bag sales and on admissions to its sporting events?
Yes to both. The gross receipts from a school's sale of gift bags are subject to Kansas sales tax because no exemption applies, and the school is likewise obligated to collect sales tax from spectator…
Is a city's lease of pilot-study water filtration equipment exempt under the Kansas manufacturing machinery and equipment exemption?
It appears to be exempt. So long as the leased filtration equipment is used to treat water the city sells to its water utility customers, the lease qualifies for the Kansas 'manufacturing machinery an…
Which well-site services performed by a hot oiler are subject to Kansas sales tax, and which are exempt?
It depends on what is serviced. Maintenance services performed on processing equipment located at a well site are exempt, but services to feeder lines, gathering systems, and pipelines are taxable — a…
Are labor services to install a flue for a manufacturer's industrial oven exempt from Kansas sales tax?
The Department did not grant an exemption. It concluded that the 'installation' services described — venting a manufacturer's industrial oven through a flue exiting the roof — were really the roofing …
What are a finance company's Kansas sales and use tax duties under a conditional sales contract or purchase order financing arrangement?
A conditional sale is taxed on the full selling price when the goods are transferred, with separately stated finance charges excluded. A finance company financing such a deal isn't required to collect…
Does fabricating and installing a roof curb for a manufacturer's oven flue qualify for the Kansas manufacturing machinery and equipment exemption?
No. Fabricating, installing, and flashing a roof curb for an oven flue is taxable roofing work on the building and does not qualify for the manufacturing machinery and equipment exemption in K.S.A. 79…
Does a church qualify for the Kansas sales tax exemption for religious organizations, and how must its exempt purchases be made?
Yes. A church that is exempt under I.R.C. 501(c)(3) and is carrying out the ministry of the church meets the criteria (set out in Notice 98-05) to be extended the Kansas sales tax exemption for religi…
Are labor charges for repairing the roof of a commercial building subject to Kansas sales tax?
Yes. Commercial roof-repair services were taxable under K.S.A. 79-3603(p) and (q) because the work installed new roofing materials and repaired existing materials that formed part of the real estate. …
Are the gross receipts for installing a building's overhead door exempt under the Kansas manufacturing machinery and equipment exemption?
No. The gross receipts for installing a building's overhead door are taxable and do not qualify for the Kansas manufacturing machinery and equipment exemption in K.S.A. 79-3606(kk). Although that exem…
Does a custom reprographics/imaging business (blueprinting, diazo copying, CAD plotting) qualify for the Kansas manufacturing (integrated plant) exemption on its equipment and repair parts?
No. A custom reprographics and imaging business (blueprinting, diazo and plain-paper copying, mapping, CAD plotting, mounting/laminating) is treated as a retailer, not an industrial manufacturer, so i…
Is a transaction called a lease but structured as a financing arrangement taxed as a lease, or as a sale, under Kansas sales tax?
It depends on the buyout. A transaction called a lease but reported as a sale/purchase for federal income tax is not taxed as a lease under K.S.A. 79-3603(h); if it transfers tangible personal propert…
Does the requesting organization qualify as an exempt 'educational institution' under the Kansas Retailers' Sales Tax Act?
No. After reviewing the materials submitted, the Department concluded the organization does not qualify as an 'educational institution' as defined by the Kansas Retailers' Sales Tax Act, so it cannot …
Can a church-operated thrift shop stop collecting Kansas sales tax because all of its sales proceeds are donated to charity?
No. A church-operated thrift shop must continue to collect and remit the applicable Kansas state and local sales tax on its retail sales, even though all of the proceeds are donated to local charities…
If an advertising agency produces catalogs for a tax-exempt customer, does the customer's exemption cover the agency's purchases of photography, film production, and printing?
No. An advertising agency that buys photography, film production, and printing to produce catalogs is the consumer of that tangible personal property and those services, so it owes Kansas sales tax on…
Are the sign-up fee and recurring monthly charges for a health discount card (giving members discounts from medical providers and retailers) subject to Kansas sales tax?
No. The charges for a health discount card — both the initial sign-up fee and the recurring monthly charges — are not subject to Kansas sales tax. Kansas taxes sales of tangible personal property and …
Must a nonprofit that holds an annual fundraising banquet and gun auction collect Kansas sales tax on admission tickets, food, and auction sales?
Yes. A nonprofit chapter that holds an annual fundraising banquet with a gun auction is making recurring sales, so it must register and collect Kansas sales tax on admission tickets, on food and sales…
Are recording-studio services, delivery of the master tape, and duplication of customer tapes subject to Kansas sales tax?
Studio recording services were not taxable, and transfer of the original master tape was incidental to that nontaxable service. The studio therefore paid sales tax on everything it bought to operate a…
Is the service of cleaning storage tanks subject to Kansas retailers' sales tax?
No. The gross receipts from the service of cleaning storage tanks are exempt from Kansas retailers' sales tax. K.S.A. 79-3603(q) taxes services of repairing, servicing, altering, or maintaining tangib…
Are plumbing labor services taxable in Kansas, and does the residential construction-labor exemption apply?
It depends on where the work is done. Under K.S.A. 79-3603(p) (from 1998 Senate Bill 493, effective July 1, 1998), labor services to install or apply tangible personal property are exempt when they in…
Are metal alloy ingots sold to a dental laboratory exempt from Kansas sales tax, and which exemption certificate should the lab use?
Yes. Metal alloy ingots a dental laboratory uses exclusively to fabricate crowns and bridges may be bought exempt from Kansas sales and use tax as ingredient or component parts. A registered lab gives…
Does a parent-teacher organization (PTO) qualify for the Kansas sales and compensating tax exemption for parent-teacher associations/organizations under K.S.A. 79-3606(yy)?
Yes. The parent-teacher organization qualifies for exemption from Kansas retailers' sales and compensating tax under K.S.A. 79-3606(yy), so it may buy tangible personal property and services without p…
Are charges to set up and reconfigure movable office wall panels and furniture into work cubicles subject to Kansas sales tax?
Yes. Charges to set up new movable wall panels and furniture into work cubicles, and to tear down and reconfigure existing ones, are taxable Kansas services. Reinstalling panels is 'installing tangibl…
Does a desktop publishing business qualify for the Kansas integrated plant (manufacturing) exemption on its equipment?
No. A desktop publishing business does not qualify for the integrated plant (manufacturing machinery and equipment) exemption in K.S.A. 79-3606(kk). Like drapery makers, custom tailors, T-shirt printe…
Are subscriber charges for access to a searchable database maintained for internet access subject to Kansas sales or use tax?
No. Charges for access to a database maintained for internet access — letting subscribers search an archive and print out relevant information — are not subject to Kansas sales or use tax. The Kansas …
Is a credit-card surcharge a propane retailer adds to the customer's bill subject to Kansas sales tax, and can the retailer deduct its credit-card fees from gross receipts?
Yes. A 2.09% credit-card surcharge a propane retailer adds to recoup its credit-card service fees is part of the taxable selling price and is subject to the same sales tax as the rest of the bill (sta…
When does Kansas sales tax apply to store items delivered to in-state versus out-of-state buyers?
Kansas sales tax follows where the buyer takes delivery. Under K.A.R. 92-19-29 (and the UCC, K.S.A. 84-2-106 and 84-2-401), tax applies whenever the buyer or the buyer's agent takes possession of the …
Are direct purchases by a public or private nonprofit hospital exempt from Kansas sales tax, and does the exemption extend to a hospital foundation?
Direct purchases by a public or private nonprofit hospital, used exclusively for hospital purposes, are exempt from Kansas sales tax under K.S.A. 79-3606(b) (with an exception when the hospital engage…
Are Guaranteed Auto Protection (GAP) premiums subject to Kansas sales tax?
No. A Guaranteed Auto Protection (GAP) premium is viewed as the sale of insurance in Kansas, so the premium is not subject to Kansas sales tax. The Kansas sales tax is imposed on selling tangible pers…
Are gate receipts charged for admission to a trade show subject to Kansas sales tax?
Yes. Gate receipts charged for admission to a trade show are subject to Kansas sales tax. K.S.A. 79-3603(e) taxes the gross receipts from the sale of admissions to any place providing amusement, enter…
Is the sale of a discount-membership program (discounts at restaurants, stores, theaters, hotels, etc.) subject to Kansas sales or use tax?
No. The sale of a discount-membership program — giving members discounts at restaurants, retail stores, sporting events, movie theaters, hotels, and other providers, plus an 800 line and a members' we…
Can a dealer offset an administrative fee, an extended warranty, and VIN etch/car care against the motor-vehicle trade-in allowance?
It depends on whether the charge is part of the vehicle sale. An administrative fee is part of the gross receipts from the sale of the vehicle, so it can be offset against (reduced by) the trade-in al…
Does the organization qualify as an exempt religious organization under the Kansas Retailers' Sales Tax Act, and what purchases are exempt?
Yes. The Department determined the organization is a religious organization under the Kansas Retailers' Sales Tax Act, so its direct purchases of tangible personal property and services used exclusive…
Does the organization qualify as an exempt religious organization under the Kansas Retailers' Sales Tax Act, and what purchases are exempt?
Yes. The Department determined the organization is a religious organization under the Kansas Retailers' Sales Tax Act, so its direct purchases of tangible personal property and services used exclusive…
Are wheelchairs, scooters, wheelchair lifts, ramps, and handicap-equipped vehicles exempt from Kansas sales tax?
It depends on the item. The Department's opinion is that an electric or manual wheelchair (whether sold or rented), a motorized scooter, and a wheelchair lift that attaches to a vehicle are exempt as …
Are public wholesale water supply districts exempt from Kansas sales tax on their purchases?
Generally yes, with a condition. The Department indicated that a public wholesale water supply district (PWWSD) organized or operating under K.S.A. 19-3545 qualifies for the sales tax exemption on its…
Is a natural gas pipeline company's charge for transporting gas taxable when it is not the supplier of the gas?
It depends on who supplied the gas. When the pipeline company is also the supplier of the natural gas, its charges to transport that gas to the customer are part of the taxable sale of the gas and are…
Must a church-run ministerial alliance collect sales tax on thrift-shop sales, and are its building materials exempt?
Two answers. First, yes — a religious organization that makes retail sales (here, a thrift shop) must register for, collect, and remit Kansas retailers' sales tax on those sales. Second, materials to …
Are an RV park's charges for overnight slip rentals and utility hook-ups subject to Kansas sales tax?
No. The Department advised that charges for RV slips and hook-ups — the per-night slip rentals with electricity, water, and waste-water dump — are not subject to Kansas sales tax. They are not charges…
Is 'mylar' used and disposed of in molding fiberglass tanks exempt as property consumed in production?
Yes. The Department's opinion is that 'mylar' — placed on the mandrel to keep the fiberglass from sticking, then removed and thrown away once each tank is finished — is consumed in the production of t…
Is the federal excise tax on fuel included in the Kansas sales tax base when it is a separate line on the invoice?
Yes. The federal excise tax on fuel is part of the 'selling price' for Kansas sales tax purposes and is included in the sales tax base — even when it is billed as a separate line item on the invoice. …
Are towing charges and sublet auto services like glass and dent work subject to Kansas sales tax?
It depends on the charge. Towing charges are NOT subject to Kansas sales tax if they are separately stated line items on the customer's bill. If towing is not separately stated, it is taxable when rep…
Does a Kansas fulfillment center collect sales tax on books it ships for publishers, or do the publishers?
The publishers, not the fulfillment center. A Kansas fulfillment center that only warehouses and ships books it does not own is not a 'retailer' and does not collect Kansas sales or use tax on those s…
Does a manufacturer's purchase of CAD software used for product engineering and design qualify for the Kansas manufacturing exemption?
Yes, if its primary use is engineering, R&D, or product design. The Department found that a manufacturer's purchase of canned AutoCAD software appears to qualify for the sales tax exemption under K.S.…
Which truck-rental invoice charges were subject to Kansas sales tax and the 3.5% vehicle rental excise tax?
For truck rentals of 28 days or less, Kansas sales tax and the 3.5% vehicle rental excise tax used the same gross-receipts base. Fuel, liability insurance, damage waivers, permits, cleaning, IFTA amou…
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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.