Ezel / Tax Rulings / KS
KS Notice 98-0101 Kansas Retailers' Sales Tax 1998-01-01

What interest rate did Kansas charge on tax liabilities for 1998, and how is it set?

Short answer: For 1998, Kansas interest on tax liabilities is 0.833% per month (10% per year). The notice gives the historical rates -- 1.5% per month (18% per year) before January 1, 1995, and 1% per month (12% per year) for 1995 through 1997 -- and states that beginning in 1998 the same rate applies to both underpayments and overpayments. From 1998 onward, the rate is computed by adding 1% to the federal underpayment rate in effect the prior July 1, with each year's rate available from the Department. This document carries no printed notice number; the Department indexes it as Notice 98-0101.

Apply this to your situation

This page answers the general question as of 1998. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 1998
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 is effective January 1, 1998 (composed February 4, 1998) and carries no printed notice number (the Department indexes it as Notice 98-0101); later law and rates may change the result, so verify the current statute before relying on it. 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

This short notice states the Kansas interest rate applied to tax liabilities and the method for setting it.

Rates:

  • Before January 1, 1995: 1.5% per month (18% per year)
  • 1995 through 1997: 1% per month (12% per year)
  • 1998: 0.833% per month (10% per year)

Beginning with 1998, the same rate applies to both underpayments and overpayments. From 1998 onward the rate is computed by adding 1% to the federal underpayment rate in effect the prior July 1; each subsequent year's rate is available from the Department's offices and web site.

The document carries no printed notice number; the Department indexes it as Notice 98-0101.

What this means for you

If you owed (or overpaid) Kansas tax for 1998, interest ran at 0.833% per month (10% per year). Because the rate is reset every year off the federal underpayment rate, check the Department's current interest-rate notice for the year you care about rather than assuming this 1998 figure.

Common questions

Q: What was the Kansas interest rate for 1998?
A: 0.833% per month, or 10% per year, applied to both underpayments and overpayments.

Q: How is the Kansas interest rate determined?
A: From 1998 onward, by adding 1% to the federal underpayment rate in effect the prior July 1.

Citations and references

  • Kansas tax interest rate set at the federal underpayment rate (prior July 1) plus 1%

Subject

1998 Interest Rate Notice

Source

Original ruling text

Notice
Notice Number:
Tax Type: Kansas Retailers' Sales Tax
Brief Description: 1998 Interest Rate Notice
Keywords:
Effective Date: 01/01/1998

Body:
1998 INTEREST RATE NOTICE

Interest is computed on the tax liability at the following rates:

  Prior to 1/1/95 - 1.5% per month (18% per year)
  1995 thru 1997 - 1% per month (12% per year)
  1998 - .833% per month (10% per year)

Beginning with 1998, the interest rate for underpayments and overpayments will be the same rate. The interest rate for 1998 and
thereafter is computed by adding 1% to the federal underpayment rate in effect the prior July 1. The interest rate for 1999 and
subsequent years will be available from the department's offices and web site.

OVERLAND PARK
Cloverleaf Office Park, Bldg. 3
6405 Metcalf Ave., Suite 120
Overland Park, KS 66203-3928
Phone: (913) 677-0158
Fax: (913) 677-6649

TOPEKA
Docking State Office Building
915 SW Harrison St.
Topeka, KS 66625-0001
Phone: (785) 296-0222
Fax: (785) 291-3614

WICHITA
State Office Building
230 E. William, Room 7150
Wichita, KS 67202-4002
Phone: (316) 337-6140
Fax: (316) 337-6162

Visit our web site: http://www.ink.org/public/kdor

Date Composed: 02/04/1998 Date Modified: 10/10/2001

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