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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Is a database-access 'interface' to medical records and lab results taxable in Kansas?
Not taxable. The 'interface' — a web-based system that lets physicians and hospitals access patient lab test results over the internet — is a nontaxable 'information' or 'database access service.' Kan…
Is diesel exhaust fluid exempt from Kansas sales tax when sold to interstate carriers?
Exempt only for interstate carriers. Diesel exhaust fluid (DEF) sold to an interstate common carrier — a public utility — for consumption or movement directly and immediately in interstate commerce co…
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…
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 …
Are monthly dues paid to a nonprofit homeowners association subject to Kansas sales tax?
Property owners' dues are exempt; associate members' dues are taxable. Monthly dues and assessments paid by Foundation Members (the property owners) to a nonprofit homeowners association — here, one w…
Which aircraft-related parts and equipment sold by an aviation business are exempt under Kansas's aircraft-parts exemption, and which are taxable?
It depends on whether the item becomes a permanent part of the aircraft. Under K.S.A. 79-3606(g), sales of aircraft repair, modification, and replacement parts — and the services to install them — are…
Which utilities used in a nursing home or assisted-living facility qualify for the residential sales-tax exemption, and which are taxable?
Only utilities used in a resident's own room or apartment (and its private bath) count as exempt "residential" use. Electricity, gas, and water consumed in a nursing home's or assisted-living facility…
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…
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 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 …
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 …
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 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…
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 …
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…
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…
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…
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 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…
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 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…
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…
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…
Are USDA GMP-mandated building materials (special flooring, wall paint, doors) exempt under Kansas's manufacturing exemption?
No. A pharmaceutical manufacturer's purchases of USDA GMP-mandated special floor coatings, wall paint, sheet rock, interior doors, and flooring are taxable. The integrated plant exemption in K.S.A. 79…
Is an implantable spinal device (a prosthetic device) exempt from Kansas sales tax even when a for-profit hospital buys it?
Yes. A motion-preserving implant surgically placed between the spinous processes is a prosthetic device that is exempt from Kansas sales tax under K.S.A. 79-3606(r), which exempts prosthetic devices p…
Is remodeling labor on a nursing or assisted-living facility taxable in Kansas?
It depends on the area. Labor to remodel the residential portions of a nursing or assisted-living facility is exempt from Kansas sales tax, while labor on the commercial portions is taxable. Following…
Is a political subdivision's sale of a duty weapon to a retiring officer subject to Kansas sales tax?
Yes. When a political subdivision sells a retiring officer's duty weapon to that officer, the sale is subject to Kansas retail sales tax. The government exemption in K.S.A. 79-3606(b) covers the polit…
Which of a YMCA's receipts — memberships, recreational program fees, and retail sales — are subject to Kansas sales tax?
Most of a qualifying YMCA's receipts are not taxed. Because a YMCA that is exempt from property tax under the Ninth paragraph of K.S.A. 79-201 falls within K.S.A. 79-3603(m), its fees and charges for …
Are sales of wound closure devices exempt from Kansas sales tax?
Yes, in the instances presented. The Department applied K.S.A. 79-3606(b), which exempts sales, leases, and rentals of tangible personal property purchased directly by a public or private nonprofit ho…
Are sales and leases of therapeutic medical beds and mattresses exempt from Kansas sales tax?
It depends on the buyer and use. The exemption the Department identified is K.S.A. 79-3606(b), which exempts sales, leases, and rentals of tangible personal property purchased directly by a public or …
What must a religious organization show to qualify for a Kansas sales-tax exemption, and did this one qualify?
To qualify under K.S.A. 79-3606(aaa), a religious organization must meet the statutory definition (a group gathering for worship at an established place of worship, with no earnings inuring to members…
Can an organization with a Kansas manufacturer's exemption also claim exemption as a nonprofit educational institution?
Not as an educational institution. The organization already held a Manufacturer's Exemption letter, letting it buy materials used in its manufacturing process exempt from sales tax. But it no longer q…
Does an organization qualify for a Kansas sales-tax exemption just because it requests one?
No. Kansas tax exemptions are narrowly construed, so an organization must clearly fit the plain language of a specific exemption statute. After reviewing the more than 60 exemptions in K.S.A. 79-3606,…
Can a contractor buy materials tax-free for a political subdivision's construction project by routing purchases through an affiliated purchasing company?
Not by itself. When a construction joint venture (a contractor plus an affiliated purchasing company) contracts with a Kansas political subdivision, the Department looks at the substance: it is a cons…
What new Kansas sales tax exemptions took effect on January 1, 2005?
This notice lists Kansas sales/use tax exemptions effective for sales on or after January 1, 2005: purchases and sales by three named IRC 501(c)(3) charities (K.S.A. 79-3606(vv)); aircraft repair part…
Are a school's sales of cookies, crafts, and plants exempt from Kansas sales tax?
It depends on who the sale is for. K.S.A. 79-3606(yy) exempts sales of tangible personal property made by or on behalf of a parent-teacher association or organization (PTA/PTO). So if the school is se…
Is an HVAC contractor's markup on materials subject to Kansas sales tax?
It depends on whether the underlying service is taxable. An HVAC contractor correctly pays Kansas sales or compensating tax on its material purchases. When the contractor performs a taxable service, i…
Are glucose tablets, lancets, and alcohol swabs subject to Kansas sales tax?
The ruling's text is internally inconsistent, so read it with care. It opens by stating that the answer is 'yes' — that selling glucose tablets, lancets, and alcohol swabs is subject to Kansas sales t…
Is installing floor coverings in a new home taxable, and does the installer owe tax on its carpet and materials?
The labor is exempt; the materials are taxable. Installing floor coverings in connection with the original construction of a building — here, a new residence built for a homebuilder — is a labor servi…
Must a vendor selling meals on a Kansas military base (Fort Leavenworth) charge Kansas sales tax?
Yes. A vendor selling meals at Fort Leavenworth must charge Kansas state and any applicable local sales tax. Kansas retailers must collect sales tax on retail sales made on military reservations in th…
Must a not-for-profit wellness facility collect Kansas sales tax on membership dues if its property-tax exemption comes from K.S.A. 79-201a?
Yes. The not-for-profit must keep collecting Kansas sales tax on its membership wellness dues. K.S.A. 79-3603(n) taxes dues that entitle members to use recreation or entertainment facilities, and it e…
Is a motor vehicle sold and delivered in Kansas to a bona fide resident of another state subject to Kansas sales tax?
No, if the conditions are met. A motor vehicle sold and delivered in Kansas to a bona fide resident of another state is exempt from Kansas sales tax under K.S.A. 79-3606(k), provided the vehicle will …
Do Kansas contractors owe sales or use tax on the materials and supplies they buy for their construction projects?
Yes. In Kansas a contractor is treated as the final consumer of the supplies and materials it uses on a construction project, so the contractor owes sales or use tax on everything it buys for the job …
Does a compressor in a natural gas pipeline compressor station qualify for the Kansas manufacturing machinery and equipment exemption?
No. A compressor in a natural gas pipeline compressor station — used to boost line pressure so gas can move down the pipeline — does not qualify for the manufacturing machinery and equipment exemption…
Does a Kansas 501(c)(3) nonprofit automatically qualify for a sales-tax exemption on its purchases?
No. Kansas does not have a broad sales-tax exemption for 501(c)(3) organizations, so being a federally tax-exempt nonprofit is not enough. The Department checked whether the crisis-pregnancy and adopt…
Does a church-affiliated health-care foundation qualify for the Kansas religious-organization sales-tax exemption?
No. A church-affiliated health-care fund does not qualify for the Kansas religious-organization sales-tax exemption in K.S.A. 79-3606(aaa). That exemption requires both a 'religious organization' (a w…
Are nafion membranes used in an integrated chemical-production process exempt from Kansas sales tax?
Exempt. Nafion membranes that serve as dividers in the electrolytic cells producing caustic soda and chlorine are repair or replacement parts within the taxpayer's integrated production operation and …
Are sales of drugs to licensed practitioners (dentists, optometrists, veterinarians) exempt from Kansas sales tax?
Exempt. Under K.S.A. 79-3606(q), sales of drugs (as defined in K.S.A. 65-1626) to a person licensed to practice the healing arts — including dentistry, optometry, and veterinary medicine — for that pe…
Is a Christian nonprofit charity exempt from Kansas sales tax on its purchases?
No. Kansas has no blanket sales-tax exemption for 501(c)(3) charities, so this Christian children's-relief nonprofit is not exempt just because it does faith-based charitable work. The only category e…
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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.