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KS Notice 07-06 Kansas Compensating Tax; Kansas Retailers' Sales Tax 2007-07-30

Were separately stated delivery charges for direct mail subject to Kansas sales or compensating-use tax?

Short answer: 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 exception covered printed material sent to a mass audience or purchaser-provided mailing list when recipients were not billed, including purchaser-supplied inserts. It did not cover multiple printed items delivered to one address. The notice left the general rule intact for taxable transportation, shipping, postage, handling, crating, and packing charges outside this narrow direct-mail exception.

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This page answers the general question as of 2007. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2007
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Notice providing general public guidance, not a private ruling issued to one taxpayer. It does not have the force of law and reflects the statutes and Department interpretation applicable when published; later law or guidance may change the result. Kansas state and local sales and use taxes are administered centrally by the Department. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Effective July 1, 2007, Kansas excluded separately stated delivery charges for qualifying direct mail from retailers' sales and compensating-use tax. The delivery charge had to appear separately on the invoice or similar billing document.

This was a narrow exception to the general rule that taxable delivery charges include transportation, shipping, postage, handling, crating, and packing when the item sold or service performed is taxable.

K.S.A. 79-3602(j) defined direct mail as printed material delivered by U.S. mail or another delivery service to a mass audience or to addressees on a mailing list supplied by the purchaser, at the purchaser's direction, when the recipients were not billed for the items. The definition included tangible personal property supplied by the purchaser for inclusion in the package. It excluded multiple printed items delivered to a single address.

What this means for you

Printers and direct-mail sellers

Separately state the qualifying delivery charge on the customer invoice. If it is not separately stated, the statutory direct-mail exclusion described in this notice does not apply.

Purchasers planning a mailing

Confirm that the job fits the statutory direct-mail definition: distribution to a mass audience or purchaser-provided list, recipients not billed, and not merely multiple printed items shipped to one address.

Common questions

Q: Were all postage and shipping charges exempt?
A: No. The exception applied only to separately stated delivery of qualifying direct mail. The general rule continued to tax delivery charges connected with taxable sales.

Q: Did the delivery charge have to be separately stated?
A: Yes. The invoice or similar billing document had to state it separately.

Q: Could a purchaser supply inserts for the mailing?
A: Yes. The direct-mail definition included tangible personal property supplied directly or indirectly by the purchaser for the package.

Q: Did shipping several printed items to one address count as direct mail?
A: No. The statutory definition expressly excluded multiple printed items delivered to a single address.

Citations and references

  • 2007 House Bill 2171, § 3.
  • K.S.A. 79-3602(i) — delivery charges and the separately stated direct-mail exclusion.
  • K.S.A. 79-3602(j) — definition of direct mail.

Subject

Charges for Delivery of Direct Mail

Source

Original ruling text

Notice
Notice Number: 07-06
Tax Type: Kansas Compensating Tax; Kansas Retailers' Sales Tax
Brief Description: Charges for delivery of "direct mail".
Keywords:
Approval Date: 07/30/2007

Body:
KANSAS DEPARTMENT OF REVENUE
DIVISION OF TAXATION

                                                 NOTICE 07-06
                                                 Direct Mailers

Effective July 1, 2007 charges for delivery of “direct mail” are not subject to Kansas sales or
compensating use tax when the delivery charge is separately stated on the invoice. This legislative
change is an exception to the general rule that requires sales/compensating use tax to be paid on delivery
charges, including but not limited to, transportation, shipping, postage, handling, crating and packing, when
the item sold or the service rendered is subject to sales tax.

This change is limited to charges for delivering “direct mail” when the delivery charge is separately stated
on the invoice, effect July 1, 2007.

2007 House Bill 2171, Section 3 amended the definition of “Delivery Charges”:
K.S.A. 79-3602(i) ‘‘Delivery charges’’ means charges by the seller of personal property or services for preparation
and delivery to a location designated by the purchaser of personal property or services including, but not limited to,
transportation, shipping, postage, handling, crating and packing. Delivery charges shall not include charges for
delivery of direct mail if the charges are separately stated on an invoice or similar billing document given
to the purchaser.

The definition of “Direct Mail” is” found at K.S.A. 79-3602(j):
"Direct mail" means printed material delivered or distributed by United States mail or other delivery services to a
mass audience or to addressees on a mailing list provided by the purchaser at the direction of the purchaser when
the cost of the items are not billed directly to the recipients. Direct mail includes tangible personal property supplied
directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed
material. Direct mail does not include multiple items of printed material delivered to a single address.

TAXPAYER ASSISTANCE
Additional copies of this or any other notice are available from the Kansas Department of Revenue’s forms
request line at 785-296-4937 or web site: www.ksrevenue.org. If you have any questions about this
notice, please contact our Taxpayer Assistance Center.
Docking State Office Building
915 SW Harrison St.
Topeka, KS 66625-8000
(785) 368-8222
Fax: (785) 291-3614

Date Composed: 07/30/2007 Date Modified: 07/30/2007

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