How were retailers supposed to handle Kansas's replacement tax-exempt entity certificates?

Plain-English summary

Kansas replaced tax-exempt entity certificates as existing certificates began expiring in November 2009. The program covered qualified schools, governments, hospitals, and certain nonprofit organizations.

Retailers could honor an old certificate until its printed expiration date, but had to request the replacement from exempt customers making purchases. The exemption number did not change. Businesses using their own exemption cards had to update their systems so only entities with a Department-issued exemption could buy tax-free.

The change did not affect agricultural, resale, manufacturing and processing, consumed-in-production, or federal-government certificates. The Department also identified an online verification tool and Publication KS-1520.

Citations and references

• Publication KS-1520, Kansas Exemption Certificates

Subject

Replacement Tax-Exempt Entity Certificates

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 09-11

Original ruling text

Kansas Department of Revenue
Office of Policy and Research

                                       Notice 09-11


 NEW KANSAS TAX-EXEMPT ENTITY EXEMPTION CERTIFICATES
                                    TO BE ISSUED
                                         July 2009

Since November 2004, the Department of Revenue has issued tax entity exemption certificates to
qualified organizations, including schools, governments, hospitals, and certain qualified nonprofit
organizations. The certificates include a unique Kansas exemption number, contain the name and
address of the exempt entity, and have a certificate expiration date. These tax entity exemption
certificates are being replaced with a new certificate as the current certificates start to expire in
November 2009. Some of the current certificates have expiration dates throughout 2010, with the
latest expiration date being November 30, 2010 but all are being replaced at this time.
As part of the process to renew the exemption certificates the department has revised the
certificate to assist you in identifying the old vs. new format. An example of the current and new
certificate is on the second page of this notice. The new certificate will be available to tax
exempt entities beginning on August 1, 2009. The renewal application is located on our web site,
www.ksrevenue.org. Throughout August and September the department will be issuing notices
to the entities on how to renew the certificate.
You can continue to honor the current exemption certificate as long as the expiration date has
not passed. You must request a copy of the new certificate from your clients as they make
purchases. The entities have been told to provide retailers with a copy of their new certificate. If
your business provides exempt entities with your own exemption card as part of your exemption
process, you must update your systems to ensure you are only allowing tax exempt entities who
are issued an exemption by the department to purchase tax exempt. Please note the exemption
number has not changed.
This change only affects the tax entity exemption certificate. Other exemption certificates used
for agricultural purchases, purchases of resale, for manufacturing and processing, consumed in
production, and purchases by the federal government are not affected and continue to be used in
the same manner. As a reminder, if you question the validity of an exemption certificate, you can
check on a tax entity exemption certificate through a verification process on our web site. Click
on exemption certificates under ‘Your Business’ to access the verification application.
For additional information on Kansas sales and use exemptions see Publication KS-1520, Kansas
Exemption Certificates, located at: www.ksrevenue.org. For specific questions on this notice or
on exemption certificates contact (785) 368-8222.

Page 2

       Current Certificate                               New Certificate

These are expiring but can be honored through These are being issued starting August 1, 2009
the expiration date on the certificate. and will expire November 1, 2014.