Are sales of multi-nutrient health foods and vitamins subject to Kansas sales tax?

Plain-English summary

A company selling health foods and vitamins asked whether those sales are taxable in Kansas. The Department cited K.S.A. 79-3603(a), which imposes sales tax on the gross receipts from the sale of tangible personal property at retail in Kansas.

It ruled that Kansas sales and use tax law provides no exemption for the sale of multi-nutrient health foods and vitamins. Therefore, the company must collect and remit the appropriate Kansas sales/use tax on those sales. The Department noted the Kansas sales/use tax rate is 4.9%, and that local sales taxes may also apply in some instances.

What this means for you

If you sell health foods, dietary supplements, or vitamins at retail in Kansas, those sales are taxable.

• No supplement/health-food exemption. Multi-nutrient health foods and vitamins are taxed like other retail tangible personal property; there is no special exemption.
• Collect and remit. As the retailer, you must collect Kansas sales/use tax and remit it to the Department.
• Rate: the ruling states a 4.9% state rate, with local sales taxes possibly applying. Rates change over time — verify the current combined rate for your location.

Note that Kansas taxes groceries and many foods differently over time; this ruling specifically addresses multi-nutrient health foods and vitamins, which it found taxable with no exemption.

Common questions

Are vitamins and health foods taxable in Kansas?
Yes. The Department ruled there is no exemption for multi-nutrient health foods and vitamins, so retail sales are subject to Kansas sales/use tax.

What rate applies?
The ruling states the state rate is 4.9%, with local sales taxes possibly applying. Check the current combined rate for the sale's location.

Who has to collect the tax?
The retailer selling the products must collect and remit the appropriate Kansas sales/use tax.

Does calling a product a "health food" make it exempt?
No. The Department found no exemption for the multi-nutrient health foods and vitamins described.

Citations and references

• K.S.A. 79-3603(a) — imposes Kansas sales tax on the gross receipts from the retail sale of tangible personal property.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1998-06.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy and Research

February 2, 1998

XXXXXXXXXXXXXXX
XXXXXXXXXXXXXXX
XXXXXXXXXXXXXXX
XXXXXXXXXXXXXXX

Dear Ms. XXXXXXXXX

We wish to acknowledge receipt of your letter dated December 24, 1997, regarding the application of Kansas Retailers’ Sales tax.

K.S.A. 79-3603(a) imposes a sales tax upon: “The gross receipts received from the sale of tangible personal property at retail within this state. . .”

Please be advised that the Kansas sales and use tax law does not provide an exemption from sales tax on the sale of multi-nutrient health foods and vitamins. Therefore, your company would be obligated to collect and remit the appropriate Kansas sales/use tax(es) on said sales. The sales/use tax rate in the state of Kansas is 4.9%. In some instances, local sales tax(es) may also apply.

If I may be of further assistance, please contact me at your earliest convenience at (913) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

TPB

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

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