Is a dirt scraper designed for use with farm tractors exempt from Kansas sales tax as farm machinery and equipment?

Plain-English summary

A seller asked whether a dirt scraper — an implement pulled behind a farm tractor to move and level soil — qualifies for the Kansas farm-machinery exemption.

The exemption. The Department quoted K.S.A. 79-3606(t), which exempts from sales tax "all sales of farm machinery and equipment or aquaculture machinery and equipment, repair and replacement parts therefor and services performed in the repair and maintenance of such equipment." The statute expressly extends to "machinery and equipment used in the operation of Christmas tree farming," but it "shall not include any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as such terms are defined by K.S.A. 8-126."

The holding. Because "the sale of the [ ] Dirt Scraper . . . is designed for use with farm tractors," the Department concluded it "would come within the scope of the sales tax exemption in K.S.A. 79-3606(t), and, therefore be exempt from sales tax in the state of Kansas."

Bottom line: an implement designed to be used with a farm tractor to perform farm work is exempt farm machinery and equipment, so its sale is not subject to Kansas sales tax. The exemption also covers repair and replacement parts and repair/maintenance services for such equipment — but it does not reach on-road vehicles (trucks, truck tractors, non-farm trailers, and the like).

What this means for you

Farmers and ranchers buying implements

Tractor-drawn implements used in farming — scrapers, plows, and similar equipment — are generally exempt farm machinery and equipment. To claim the exemption at purchase, give the dealer a completed Kansas agricultural exemption certificate; the exemption also covers repair parts and repair/maintenance labor on the equipment.

Farm-equipment dealers

When an item is designed for use with farm tractors in farming operations, treat its sale as exempt under K.S.A. 79-3606(t) once you have the buyer's exemption certificate on file. Keep the certificate to support the exempt sale on audit.

Where the exemption stops

The exemption does not cover on-road vehicles — passenger vehicles, trucks, truck tractors, trailers, semitrailers, or pole trailers — other than a farm trailer as defined by K.S.A. 8-126. An item that is really a highway vehicle is taxable even if used on a farm.

Common questions

Q: Is a dirt scraper for a farm tractor taxable in Kansas?
A: No. The Department ruled a dirt scraper "designed for use with farm tractors" comes within the K.S.A. 79-3606(t) farm-machinery exemption and is "exempt from sales tax in the state of Kansas."

Q: Does the exemption cover repairs and parts too?
A: Yes. K.S.A. 79-3606(t) exempts "repair and replacement parts therefor and services performed in the repair and maintenance of such equipment," in addition to the equipment itself.

Q: What isn't covered by the farm-machinery exemption?
A: On-road vehicles — "any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as such terms are defined by K.S.A. 8-126."

Citations and references

• K.S.A. 79-3606(t) — exempts all sales of farm machinery and equipment (and aquaculture machinery and equipment), repair and replacement parts, and repair/maintenance services; the basis for exempting the dirt scraper.
• K.S.A. 8-126 — supplies the vehicle definitions (passenger vehicle, truck, truck tractor, trailer, semitrailer, pole trailer, farm trailer) that mark the boundary of what the farm-machinery exemption excludes.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-205

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

September 9, 1999

TTTTTTTTTTTT
TTTTTTTTTTTT
TTTTTTTTTTTT

Dear Mr. TTTTTTTT:

We wish to acknowledge receipt of your letter dated August 31, 1999, regarding the application of Kansas Retailers’ Sales tax.

K.S.A. 79-3606(t) exempts from sales tax: “all sales of farm machinery and equipment or aquaculture machinery and equipment, repair and replacement parts therefor and services performed in the repair and maintenance of such equipment. For purposes of this subsection the term “farm machinery and equipment or aquaculture machinery and equipment” shall include machinery and equipment used in the operation of Christmas tree farming but shall not include any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as such terms are defined by K.S.A. 8-126 and amendments thereto. . .”

It is the opinion of this office that the sale of the TTTTTT Dirt Scraper, which is designed for use with farm tractors would come within the scope of the sales tax exemption in K.S.A. 79-3606(t), and, therefore be exempt from sales tax in the state of Kansas.

This is a private letter ruling pursuant to K.A.R. 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 ruling will be revoked in the future by the operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially effects this private letter ruling. 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: 09/22/1999 Date Modified: 10/11/2001

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