Form Pub Ks-1520 - Kansas Exemption Certificates Page 9
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49Nonprofit corporations who provide nursing or foster
Noncommercial Residential. State Exempt: Gas and
care for children, the elderly, or disabled may also
electricity used in your home for nonbusiness
purposes. (Local sales tax applies). State & Local
be exempt from paying sales tax on their utilities.
Exempt: Water used in your home for nonbusiness
To qualify, the Court of Tax Appeals (COTA) must
purposes.
first have granted the nonprofit corporation an
exemption from real estate property tax.
CONDOMINIUMS AND APARTMENT
COMPLEXES. State Exempt: Gas and
Exempt Utility Uses
electricity used in the apartment or
condominium for nonbusiness residential
Electricity, gas, water and heat used in these
purposes (local sales tax applies). State & Local Exempt:
industries and ways are exempt from sales tax:
Water used in the apartment or condominium for
nonbusiness residential purposes.
• Consumed in production
• Ingredient or component part
Providing Taxable Services. To qualify, the service
• Irrigation of crops
must be subject to sales tax. Utilities used by those
• Movement in interstate commerce
who provide nontaxable services, such as a doctor,
• Providing taxable services
lawyer, accountant, or childcare center are
• Severing of oil
TAXABLE.
NOTE: Agricultural and noncommercial residential use of electricity,
HOTELS. Exempt: Utilities actually used
gas or heat are exempt from the state sales tax, but are subject to
any applicable local (city and/or county) sales tax in effect at the
in the rooms occupied by hotel guests.
customer’s location. Agricultural and noncommercial residential use
Taxable: Utilities for lobbies, conference
of water is exempt from both sale and local sales tax.
rooms, hallways, administrative offices,
swimming pools, and parking lots.
Use these general guidelines and illustrations to
determine if a portion of the utilities used by your
Severing of Oil. Exempt: Electricity or gas to power
business is exempt. Unless part of an integrated
pumps that remove oil or gas from the ground.
production operation, utilities used to light, heat, cool,
Taxable: Electricity or gas for lighting and other
clean, or maintain equipment, buildings, or business
nonextraction purposes at the pump station.
facilities are TAXABLE.
Obtaining a Utility Exemption
Agricultural. State Exemption: Gas and electricity use
related to farming or ranching, such as the electricity
To request an exemption for electricity, gas or water
needed to operate milking machines or to run a
used in your business you must complete Statement
grain auger. (Local sales tax applies). Water use
for Sales Tax Exemption on Electricity, Gas or Water
related to farming and ranching is exempt from both
Furnished Through One Meter (ST-28B).
state and local sales tax.
You will need to complete a form for each utility meter
Consumed in Production. The utility use must meet
on which you are requesting an exemption. Follow these
the consumed in production criteria on page 8.
steps to obtain an exemption on your utility.
Exempt: Utilities used to operate tools and
manufacturing machinery. Taxable: Utilities to light,
1) Using the instructions and examples that
heat or cool a nonproduction area.
accompany the form, determine your exempt
percentage. You may need the assistance of a
Ingredient or Component Part. The utility use must
plumber or electrician to complete the formula.
meet the definition of an ingredient or component
2) Give the original completed form to your utility
part on page 8. Exempt: Water to make soft drinks
company along with all the workpapers and
or other beverages. Taxable: Water used to clean
documents used to compute your “Exempt
vats and brewing equipment.
Percent.” Be sure to keep a copy of the form and
Irrigation of Crops. Exempt: Electricity or other power
your work papers for your records.
sources to run an irrigation pump or water applied
3) The utility company may forward your exemption
to growing crops.
request to KDOR for review before granting the
exemption.
Movement in Interstate Commerce by Railroad or
Public Utility. Exempt: Electricity or gas used to
4) Once approved, the utility will grant the exemption.
pump or push oil or gas through an interstate
IMPORTANT: When there is a change in your
pipeline, provided the pipeline is registered with the
“Exempt Percent,” it is your responsibility to
Federal Energy Regulatory Commission. Taxable:
immediately file a revised utility exemption form with your
Utilities used by non-interstate pipelines. Utilities
utility provider.
used to operate railroad signal lights and switches;
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