Are fencing materials and services to repair 2016 fire-damaged agricultural fences exempt from Kansas sales tax?

Plain-English summary

Kansas Notice 16-04 explains a sales tax exemption for fencing materials and services used to rebuild farm fences destroyed by fire in 2016, created by House Substitute for Senate Bill 149 (2016), which amended K.S.A. 79-3606d.

The exemption. All sales of tangible personal property and services purchased during calendar year 2016 necessary to construct, reconstruct, repair, or replace any fence damaged or destroyed by fire occurring during calendar year 2016 -- where the fence encloses land devoted to agricultural use -- are exempt from Kansas retailers' sales tax. Sales tax paid on or after January 1, 2016 but before the act's effective date is refundable.

How to claim it. File form ST-3 (Kansas Application for Sales Tax Refund of Fencing Materials and/or Services), with all requested information and documents (invoices, fire/police or insurance reports, proof of tax paid).

Timing. The legislation's effective date is July 1, 2016, but the Department accepts refund claims submitted before then, with refunds issued beginning July 1. Allow at least 45 days to process a claim.

Kansas-retailer tax only. Refunds are made only for sales tax paid to a Kansas retailer -- tax paid to an out-of-state retailer is not refunded.

Later replaced. This notice was replaced by Notice 17-01, which extended the exemption to fences damaged by 2016 and 2017 wildfires and to purchases made in 2017 and 2018.

What this means for you

Farmers and ranchers who rebuilt fences after 2016 fires

• Fencing materials and services bought in 2016 to repair agricultural fences damaged by 2016 fires are exempt; recover tax paid since January 1, 2016 by filing form ST-3.

Anyone still relying on this notice

• Note it was superseded by Notice 17-01 for the extended 2017-2018 wildfire fencing exemption.

Common questions

What purchases qualify? Fencing materials and services bought in 2016 to repair agricultural fences damaged or destroyed by 2016 fires.

How do I recover tax already paid? File form ST-3; refunds cover only sales tax paid to a Kansas retailer.

When is the exemption effective? July 1, 2016, though claims are accepted earlier and refunds issued starting July 1.

Is this notice still current? No -- Notice 17-01 later replaced it and extended the exemption to 2017-2018.

Citations and references

• House Substitute for Senate Bill 149 (2016) -- amended K.S.A. 79-3606d to exempt qualifying 2016 fencing purchases and refund tax paid on or after January 1, 2016.
• Claim method: form ST-3; effective July 1, 2016; Kansas-retailer tax only.
• Replaced by Notice 17-01.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 16-04

Original ruling text

Tax Policy Group
Division of Taxation Phone: 785-296-3081
915 SW Harrison St FAX: 785-296-7928
Topeka KS 66612-1588 www.ksrevenue.org
Nick Jordan, Secretary Department of Revenue Sam Brownback, Governor
Steve Stotts, Director

                                           NOTICE 16-04

             EXEMPT SALES OF FENCING MATERIALS AND SERVICES
                                            (JULY 1, 2016)

 During the 2016 Legislative Session House Substitute for Senate Bill 149 was passed and signed into law. This

Bill amended K.S.A. 79-3606d to provide for tax exempt sales of fencing materials and services purchased during
calendar year 2016 to construct, reconstruct, repair or replace any fence which was damaged or destroyed by fire
during 2016, and the purpose for which is to enclose land devoted to agricultural use. As amended, the language of
K.S.A. 79-3606d now reads:

 79-3606d. (a) The following shall be exempt from the tax imposed by the Kansas retailers' sales tax act: All

sales of tangible personal property and services purchased during calendar year 2016, necessary to construct,
reconstruct, repair or replace any fence which was damaged or destroyed by fire occurring during calendar year
2016, and the purpose for which is to enclose land devoted to agricultural use. Sales tax paid on and after January
1, 2016, but prior to the effective date of this act upon the gross receipts received from any such sale shall be
refunded. Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms
furnished by the director and shall be accompanied by any additional documentation required by the director. The
director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions
of this section. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts
and reports pursuant to vouchers approved by the director or the director's designee.
(b) The provisions of this section shall be deemed to be supplemental to the Kansas retailers' sales tax act.

 The exemption allowed by the statute can be claimed by submitting form ST-3, Kansas Application for Sales

Tax Refund of Fencing Materials and/or Services. Please be sure to submit all the information and documents
requested on the form at the time you file your claim for refund. Failing to do so will delay or may even prevent
issuance of a refund.

While the effective date of the legislation is July 1, 2016, the Department of Revenue will accept refund claims

submitted before that date. Refunds may be issued beginning July 1st. You should allow at least 45 days for
processing of any claim.

Please note refunds will only be made for sales tax paid to a Kansas retailer. Sales tax paid on purchases from

a non-Kansas retailer (for example, a retailer in Oklahoma) will not be refunded.

                                         TAXPAYER ASSISTANCE

Additional copies of this notice, forms or publications are available from our web site (ksrevenue.org). If you

have questions about this Notice, please contact:

                                       Audit Services, 10th floor
                                          915 SW Harrison St.
                                       Topeka, KS 66625-7719
                                    Email: [email protected]
                                          Phone: (785) 296-7108
                                           Fax: (785) 296-0531

                Kansas Application for Sales Tax Refund of Fencing Materials and/or Services

To qualify for a refund, fencing materials and/or services must be purchased in calendar year 2016 and used to repair
or replace fencing necessary to construct, reconstruct, repair or replace any fence which was damaged or destroyed
by fire occurring during calendar year 2016, and the purpose for which is to enclose land devoted to agricultural use.
Please complete one form for each location.
For additional information, refer to Notice 16-04, Exempt Sales of Fencing Materials and Services.

                                      Name:

Claimant Information

                                      Address:

                                      Telephone Number: (          )                           Contact Name:

                                      SSN or FEIN (required)                                   Phone Number:

                                      Email Address

                                      Location (including county) of fence replacement:

Please provide the following information:
 Copy of all retailer invoices and/or sales receipts included in refund request.
 Copy of reports from the fire and/or police department or insurance forms to support request.
 Copy of proof that sales tax was paid to the retailer, such as cancelled check (if not listed on receipt).
Invoice
Invoice Date Retailer's Name Invoice Amount Tax Paid
Number
Invoice Information

                                                                                                                           Total:

                                                                       Send this form and a copy of your paperwork to:
                                                                                Kansas Department of Revenue
                                                                               Audit Services – Fencing Refunds
                                                                                      915 SW Harrison St.
                                                                                   Topeka, KS 66625-7719
                                                                               Email: [email protected]
                                                                                    Phone: (785) 296-7108
                                                                                     Fax: (785) 296-0531

I declare under the penalties of perjury that to the best of my knowledge this is a true, correct and complete refund request for
materials purchased and used specifically for fencing destroyed by fire to enclose land devoted to agricultural use.

Signature of Claimant Date

ST-3 (Rev. 6/16)