Are sales of beverages for human consumption subject to Kansas sales tax?

Plain-English summary

A company selling beverages asked whether Kansas sales tax applies to sales of beverages for human consumption. The Department's answer was straightforward.

The imposition. K.S.A. 79-3603(a) taxes "[t]he gross receipts received from the sale of tangible personal property at retail within this state." Beverages sold at retail are tangible personal property.

No exemption. "[T]he Kansas sales and use tax law does not provide an exemption from sales tax on the sale of beverages for human consumption. Therefore, your company would be obligated to collect and remit the appropriate Kansas sales/use tax(es) on said sales."

Rate. The Department noted the Kansas state "sales/use tax rate . . . is 4.9%," adding that "[i]n some instances, local sales tax(es) may also apply." (That 4.9% was the state rate at the time of this 1999 ruling; verify the current combined state and local rate for your location, since rates change.)

Bottom line: beverages for human consumption are ordinary taxable retail sales in Kansas — there is no exemption — and the seller collects state tax plus any applicable local tax.

What this means for you

Beverage sellers and food-service businesses

Collect Kansas sales tax on your beverage sales; there is no exemption for beverages for human consumption. Treat them as standard taxable retail sales of tangible personal property.

Apply the correct combined rate

Charge the state rate plus any local sales tax in effect where the sale occurs. The 4.9% figure in this ruling was the 1999 state rate — confirm the current state rate and the local add-ons for your jurisdiction, because they change over time.

Don't assume "food" treatment makes a beverage exempt

This ruling addresses beverages as taxable tangible personal property with no exemption. If you are analyzing a specific reduced-rate or exemption program, check its current terms rather than assuming beverages are covered.

Common questions

Q: Are beverage sales taxable in Kansas?
A: Yes. The Department ruled there is no exemption for the sale of beverages for human consumption, so the seller must collect and remit the appropriate Kansas sales or use tax.

Q: What rate applies?
A: The Kansas state rate was 4.9% at the time of the ruling, and local sales taxes may also apply. Confirm the current combined rate for your location.

Q: Is there any exemption for beverages?
A: Not under this ruling. Kansas sales and use tax law provided no exemption for beverages for human consumption.

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; the basis for taxing beverages for human consumption, for which the Department found no exemption.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-246

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

October 26, 1999

TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT

Dear Ms. TTTTTTT:

We wish to acknowledge receipt of your letter dated September 20, 1999, 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 beverages for human consumption. 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.

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: 11/09/1999 Date Modified: 10/11/2001

Table 1

Table 2