Does the Kansas exemption for a vehicle or aircraft sold to an out-of-state resident cover trailers, and what must the dealer keep on file?

Plain-English summary

The Department corrected a misunderstanding about K.S.A. 79-3606(k), which exempts from Kansas Retailers' Sales Tax:

"Any motor vehicle or aircraft sold and delivered in this state to a bona fide resident of another state, which motor vehicle or aircraft is not to be registered in this state and which vehicle or aircraft will not remain in this state more than ten (10) days."

The key point: the exemption reaches only motor vehicles and aircraft. Kansas law (K.S.A. 8-126(b)) defines a "motor vehicle" as "every vehicle, other than a motorized bicycle, which is self-propelled."

So motorized bicycles and all types of trailers are NOT exempt — including semi-trailers, house trailers, boat trailers, and camper trailers, or any other vehicle that is not self-propelled. Those sales are taxable when delivered to the buyer in Kansas, unless another statute exempts them.

When a retailer does make an exempt sale of a qualifying motor vehicle or aircraft to a nonresident, the retailer must secure an exemption certificate from the customer — the Department's Form STD 8 B, "Affidavit of Delivery of a Motor Vehicle or Aircraft to a Nonresident of Kansas and to be Titled or Based Outside the State of Kansas." A retailer who fails to obtain this affidavit is held liable for the tax on the sale.

What this means for you

If you sold vehicles in Kansas, you could not assume that "sold to an out-of-state buyer" meant "tax-free." The exemption was narrow: the item had to be self-propelled (or an aircraft), the buyer a genuine nonresident, the item not registered in Kansas and gone within ten days — and you had to keep the signed affidavit. Sell a trailer to a nonresident and it was taxable on delivery. Miss the affidavit on an otherwise-exempt sale and the tax became yours.

Common questions

Q: Are trailers covered by the nonresident exemption?
A: No. Because a trailer is not self-propelled, it falls outside the K.S.A. 8-126(b) definition of "motor vehicle," so semi-, house, boat, and camper trailers are not exempt.

Q: What are the conditions for the exemption?
A: The motor vehicle or aircraft must be sold and delivered in Kansas to a bona fide resident of another state, not be registered in Kansas, and not remain in Kansas more than ten days.

Q: What must the dealer keep?
A: A completed affidavit from the nonresident buyer — the Department's Form STD 8 B. Without it, the retailer is liable for the tax.

Citations and references

• K.S.A. 79-3606(k) — exemption for a motor vehicle or aircraft sold to a nonresident, not registered in Kansas, and removed within ten days.
• K.S.A. 8-126(b) — defines "motor vehicle" as a self-propelled vehicle other than a motorized bicycle.

Subject

Nonresident Motor Vehicle and Aircraft Exemption (K.S.A. 79-3606(k))

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 80-1201

Original ruling text

Notice
Notice Number: Motor Vehicle or Aircraft
Tax Type: Kansas Retailers' Sales Tax
Brief Description: Resident of another state
Keywords:
Effective Date: 12/01/1980

Body:
NOTICE

TO: Kansas Retailers

FROM: Sales and Excise Tax Bureau

SUBJECT: KSA 79-3606 (k)

It has come to the attention of this bureau that a misunderstanding exists in regard to KSA 79-3606 (k) which exempts from the
Retailers' Sales Tax:

               "Any motor vehicle or aircraft sold and delivered in this state to a bona fide resident of another state, which motor
               vehicle or aircraft is not to be registered in this state and which vehicle or aircraft will not remain in this state
               more than ten (10) days;"

  Please note the statute only exempts "motor vehicles" and aircraft. A "motor vehicle" is defined in KSA 8-126 (b) as:
                "Every vehicle, other than a motorized bicycle, which is self-propelled."
  Therefore, motorized bicycles and all types of trailers are not exempted under KSA 79-3606 (k). This would include semi-
  trailers, house trailers, boat trailers, camper trailers or any other vehicle that is not self-propelled. All such sales are subject to
  the tax when delivered to the buyer in this state, unless the sale is exempted elsewhere in the statutes.

  When a retailer makes a sale of a motor vehicle or aircraft to a bona fide resident of another state, and such motor vehicles or
  aircraft is not to be registered or based in this state, the retailer is required to secure an exemption certificate from the
  customer. The Department of Revenue requires that this certificate be our form STD 8 B, Affidavit of Delivery of a Motor
  Vehicle or Aircraft to a Nonresident of Kansas and to be Titled or Based Outside the State of Kansas.

  Retailers failing to secure this exemption certificate from their nonresident customers will be held liable for the tax on the sale
  of the motor or aircraft.

  Requests for a supply of STD 9 B affidavits or questions concerning the application of KSA 79-3606 (k) should be directed to
  Sales and Excise Tax Bureau, Kansas Department of Revenue, P.O. Box 12001, Topeka, Kansas 66612, or call Area Code 913-
  296-2461

Date Composed: 10/06/1997 Date Modified: 10/10/2001

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