Do individual 4-H programs qualify for a Kansas sales-tax exemption?

Plain-English summary

Someone asked the Department how Kansas retailers' sales tax applies to the purchases and retail sales of individual 4-H organizations. The Department ruled that individual 4-H programs qualify for the sales-tax exemption in K.S.A. 79-3606(ii).

The holding. "Pursuant to Revenue Ruling 19-1998-2, it is the opinion of the Kansas Department of Revenue that the exemption as articulated in Kansas law at K.S.A. 79-3606(ii) would apply to individual 4-H programs authorized by the 4-H Cooperative Extension Service to operate a 4-H organization in Kansas."

Who counts as an "individual 4-H program." The Department read the term broadly. It "would include but not limited to: Local 4-H clubs; regional or State 4-H councils; county, regional or state 4-H committees; 4-H leader associations; county, regional or state 4-H foundations; authorized 4-H camps and training centers."

The tie to authorization. The exemption follows from being a 4-H program "authorized by the 4-H Cooperative Extension Service" — the authorization is what brings the entity within the exemption.

What this means for you

4-H clubs, councils, committees, and foundations

If your 4-H program is authorized by the 4-H Cooperative Extension Service to operate in Kansas, it falls within the K.S.A. 79-3606(ii) exemption the Department applied here. The Department's list of qualifying bodies is broad and expressly non-exclusive.

Authorization is the key fact

The exemption is tied to being an authorized 4-H program. Keep documentation of your authorization by the 4-H Cooperative Extension Service, and follow the Department's procedures for claiming the exemption.

Confirm the statute's current terms

This ruling applied the exemption "as articulated" in K.S.A. 79-3606(ii) in 1999 and relied on Revenue Ruling 19-1998-2. Statutes and rulings can change, so confirm the current text and any procedural requirements before relying on it.

Common questions

Q: Are individual 4-H programs exempt from Kansas sales tax?
A: Yes. The Department ruled that the exemption in K.S.A. 79-3606(ii) applies to individual 4-H programs authorized by the 4-H Cooperative Extension Service to operate in Kansas.

Q: Which 4-H entities are covered?
A: The Department listed local 4-H clubs; regional or state councils; county, regional, or state committees; leader associations; county, regional, or state foundations; and authorized camps and training centers — expressly "but not limited to" those.

Q: What has to be true for the exemption to apply?
A: The 4-H program must be authorized by the 4-H Cooperative Extension Service to operate a 4-H organization in Kansas.

Citations and references

• K.S.A. 79-3606(ii) — the sales-tax exemption the Department applied to individual 4-H programs authorized by the 4-H Cooperative Extension Service.
• Revenue Ruling 19-1998-2 — the Department's revenue ruling under which it read K.S.A. 79-3606(ii) to reach individual 4-H programs; the private letter ruling follows it.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-03

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

January 20, 1999

XXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXX

Dear XXXXXXXXXXXX:

The purpose of this letter is to respond to your letter dated September 3, 1998. You requested the Kansas Department of Revenue advise you on the application of Kansas retailers’ sales tax on purchases and retail sales made by individual 4-H organizations.

Pursuant to Revenue Ruling 19-1998-2, it is the opinion of the Kansas Department of Revenue that the exemption as articulated in Kansas law at K.S.A. 79-3606(ii) would apply to individual 4-H programs authorized by the 4-H Cooperative Extension Service to operate a 4-H organization in Kansas. The term “Individual 4-H programs” would include but not limited to: Local 4-H clubs; regional or State 4-H councils; county, regional or state 4-H committees; 4-H leader associations; county, regional or state 4-H foundations; authorized 4-H camps and training centers.

This is a private letter ruling pursuant to Kansas Administrative Regulation 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by
operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this ruling.

Sincerely,

Mark D. Ciardullo
Tax Specialist

MDC

Date Composed: 01/21/1999 Date Modified: 10/11/2001

Table 1

Table 2