Does a nonprofit support group qualify for an exemption from Kansas sales tax?

Plain-English summary

The Department was asked whether a nonprofit support group qualifies for a Kansas sales tax exemption. The short version: no — being a nonprofit is not enough; an exemption must come from a specific statute, and this support group has none. The Department noted the reply "is an informational letter only and not a private letter ruling pursuant to K.A.R. 92-19-59."

The Department's explanation:

• Recent exemptions came from Senate Bill 493. "Governor Bill Graves signed Senate Bill 493 into law, which became effective July 1, 1998. It contained several sales tax exemptions to deserving organizations, including non-profit zoos and parent-teacher organizations."
• Nonprofit status alone is not an exemption. "Many organizations, such as your support group, perform a great deal of services for their communities with the funds that they raise. However, not every non-profit organization enjoys an exemption from Kansas sales tax. Yours does not."
• Only the Legislature can add one. "An exemption for support groups, such as yours would require a change to Kansas statutes through legislative action." The Department suggested the taxpayer contact its elected Kansas representative and senator.

What this means for you

Nonprofit organizations

Do not assume your nonprofit is exempt from Kansas sales tax. The exemptions are granted organization-by-organization by statute; if your type of organization is not named, you pay tax like anyone else on your taxable purchases and must collect tax on your taxable sales.

Groups that got an exemption in 1998

Senate Bill 493 (effective July 1, 1998) specifically exempted certain organizations, including non-profit zoos and parent-teacher organizations. If you fall squarely within a named category, you can rely on that statutory exemption.

Seeking a new exemption

If your organization is not covered, the Department cannot grant an exemption administratively — it takes a change in the statutes. The practical route is legislative: contact your Kansas representative and senator.

Common questions

Q: Is my nonprofit automatically exempt from Kansas sales tax?
A: No. Not every nonprofit is exempt. An exemption has to be granted by a specific Kansas statute.

Q: Which organizations did Senate Bill 493 exempt?
A: It added several exemptions, including for non-profit zoos and parent-teacher organizations, effective July 1, 1998.

Q: How can my group get an exemption if it doesn't have one?
A: Only through legislative action changing the statutes. The Department suggested contacting your elected Kansas representative and senator.

Citations and references

• Senate Bill 493 (effective July 1, 1998) — signed by Governor Bill Graves; added several Kansas sales tax exemptions for specified organizations, including non-profit zoos and parent-teacher organizations.
• No general nonprofit exemption — nonprofit status alone does not exempt an organization from Kansas sales tax; an exemption must be granted by statute, and adding one requires legislative action. (The Department cited no K.S.A. section in this letter.)

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: O-1998-11

Original ruling text

Opinion Letter

Body:

Office of Policy & Research

September 18, 1998

TTTTTTTTTT
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Dear Ms. TTTTT:

We wish to acknowledge receipt of your letter dated August 25, 1998, regarding the application of Kansas Retailers’ Sales tax.

This is an informational letter only and not a private letter ruling pursuant to K.A.R. 92-19-59.

Governor Bill Graves signed Senate Bill 493 into law, which became effective July 1, 1998. It contained several sales tax exemptions to deserving organizations, including non-profit zoos and parent-teacher organizations.

Many organizations, such as your support group, perform a great deal of services for their communities with the funds that they raise. However, not every non-profit organization enjoys an exemption from Kansas sales tax. Yours does not.

An exemption for support groups, such as yours would require a change to Kansas statutes through legislative action. Therefore, you may also wish to contact your elected Kansas representative and senator.

If I may be of further assistance, please contact me at your earliest convenience at (785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

TPB

Date Composed: 09/25/1998 Date Modified: 10/10/2001

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