Does use by youth organizations qualify a camp for the K.S.A. 79-3606(ii) exemption, and must the camp charge tax on facility use?

Plain-English summary

A camp operator detailed the organizations that used "Camp ABC" during 1999 and asked whether that use qualifies the camp for the exemption in K.S.A. 79-3606(ii). The Department ruled the camp does not qualify and, moreover, must charge sales tax on its facility fees to non-exempt users.

Why the camp is not exempt. The exemption covers "all sales of tangible personal property purchased directly by a nonprofit organization for nonsectarian comprehensive multidiscipline youth development programs and activities provided or sponsored by such organization." Many camp users "appear to qualify as nonprofit organizations that sponsor 'nonsectarian comprehensive multidiscipline youth development programs.' However, this use does not make Camp ABC the sponsor or provider of the programs. The sponsor or provider is the organization itself, such as the Boy Scouts and Cub Scouts. Accordingly, Camp ABC does not qualify for exemption under K.S.A. 79-3606(ii) and should continue to pay sales tax on all of its purchases."

Tax on facility use. "Kansas imposes sales tax on charges for use of recreational facilities, which include camps. This imposition is found at K.S.A. 79-3603(n) and means that Camp ABC should charge tax on its fees to individuals and organizations that are not otherwise exempt." The Department added that the camp "should not charge the non-profit groups that qualify as nonsectarian comprehensive multidiscipline youth development" tax for using its facilities.

What this means for you

Camps and other recreational facilities

Letting exempt youth organizations use your facility does not make you the program's sponsor, so you cannot claim the youth-development exemption on your own purchases. You keep paying sales tax on what you buy.

You must tax facility-use fees

Charges for using recreational facilities, including camps, are taxable under K.S.A. 79-3603(n). Collect sales tax on fees charged to users who are not otherwise exempt.

Don't tax the qualifying youth groups

A nonprofit that itself qualifies as a nonsectarian comprehensive multidiscipline youth development organization should not be charged sales tax for using the camp's facilities. Distinguish those groups from other, taxable users.

Common questions

Q: Does hosting Boy Scouts and similar groups make a camp tax-exempt?
A: No. The exempt sponsor is the youth organization, not the camp. The camp does not qualify for the K.S.A. 79-3606(ii) exemption and must pay tax on its purchases.

Q: Does the camp charge sales tax on facility-use fees?
A: Yes, to users who are not otherwise exempt — Kansas taxes charges for the use of recreational facilities, including camps, under K.S.A. 79-3603(n).

Q: Are the qualifying youth groups charged tax to use the camp?
A: No. The camp should not charge sales tax to nonprofit groups that qualify as nonsectarian comprehensive multidiscipline youth development organizations.

Citations and references

• K.S.A. 79-3606(ii) — exempts tangible personal property purchased directly by a nonprofit organization for nonsectarian comprehensive multidiscipline youth development programs it provides or sponsors. The camp did not qualify because it is not the sponsor or provider of the programs.
• K.S.A. 79-3603(n) — imposes Kansas sales tax on charges for the use of recreational facilities, which include camps; the camp must collect tax on facility-use fees from users who are not otherwise exempt.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: O-2000-01

Original ruling text

Opinion Letter

Body:

Office of Policy & Research

January 24, 2000

XXXX
XXXX

RE: Your letter of January 7, 2000

Dear XXXX:

Thank you for your letter that we received last week. In it you detail the organizations that used Camp ABC during 1999 and ask if this use qualifies the camp for exemption under K.S.A. 79-3606(ii). This provision exempts:

(ii) all sales of tangible personal property purchased directly by a nonprofit organization for nonsectarian comprehensive multidiscipline youth development programs and activities provided or sponsored by such organization, and all sales of tangible personal property by or on behalf of any such organization. This exemption shall not apply to tangible personal property customarily used for human habitation purposes;

Many of the organizations that use the camp appear to qualify as nonprofit organizations that sponsor “nonsectarian comprehensive multidiscipline youth development programs.” However, this use does not make Camp ABC the sponsor or provider of the programs. The sponsor or provider is the organization itself, such as the Boy Scouts and Cub Scouts. Accordingly, Camp ABC does not qualify for exemption under K.S.A. 79-3606(ii) and should continue to pay sales tax on all of its purchases.

Please note that Kansas imposes sales tax on charges for use of recreational facilities, which include camps. This imposition is found at K.S.A. 79-3603(n) and means that Camp ABC should charge tax on its fees to individuals and organizations that are not otherwise exempt. Of course, Camp ABC should not charge the non-profit groups that qualify as nonsectarian comprehensive multidiscipline youth development sales tax for the use of its camp facilities. I hope I have answered all of your questions. If not, please call me and we can discuss this matter further.

Sincerely,

Thomas E. Hatten
Attorney/Policy & Research

Date Composed: 02/15/2000 Date Modified: 10/10/2001

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