Are dietary supplements such as protein drinks subject to Kansas sales tax?

Plain-English summary

A company that sells dietary supplements — specifically "Protein Drinks" — asked whether those sales are subject to Kansas sales tax. The Department's answer is yes.

Kansas imposes sales tax under K.S.A. 79-3603(a) on:

"The gross receipts received from the sale of tangible personal property at retail within this state. . ."

The Department advised that Kansas sales and use tax law does not provide an exemption for the sale of dietary supplements such as protein drinks. The company is therefore obligated to collect and remit the appropriate Kansas sales/use tax on those sales. The letter quoted the state rate of 4.9% (the rate in 2002) and cautioned that local sales taxes may also apply.

Bottom line: protein drinks and similar dietary supplements are ordinary taxable tangible personal property in Kansas — there is no food or supplement exemption that removes them from tax.

What this means for you

Sellers of supplements, protein drinks, and similar products

Collect Kansas sales tax on these sales. Kansas taxes food and food-type products generally, and there is no special exemption for dietary supplements — treat them like any other taxable retail merchandise.

Rate to charge

The letter cited a 4.9% state rate, which was correct in 2002. Kansas has changed its state rate since, and local sales taxes are added on top based on where the sale is sourced — always apply the current combined state-and-local rate rather than the historical figure quoted here.

Buyers

Expect to pay sales tax on protein drinks and dietary supplements bought at retail in Kansas; they are not exempt purchases.

Common questions

Q: Are dietary supplements and protein drinks taxable in Kansas?
A: Yes. The Department advised there is no exemption for dietary supplements such as protein drinks, so they are subject to Kansas sales/use tax under K.S.A. 79-3603(a).

Q: Is there a food exemption that covers them?
A: No. The letter states Kansas law provides no exemption for these products; Kansas taxes food and food-type products generally.

Q: What rate applies?
A: The letter quoted a 4.9% state rate (2002). That state rate has since changed, and local sales taxes may also apply — use the current combined rate for the sale's location.

Citations and references

• K.S.A. 79-3603(a) — imposes Kansas sales tax on the gross receipts from retail sales of tangible personal property.
• K.A.R. 92-19-59 — the regulation authorizing Kansas private letter rulings.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2002-044

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

May 7, 2002

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Dear Ms. TTTTTT:

We wish to acknowledge receipt of your letter dated April 24, 2002, 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 dietary supplements, such as “Protein Drinks”. 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, 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: 05/29/2002 Date Modified: 05/29/2002

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