Form Pub. Ks-1510 - Kansas Sales Tax And Compensating Use Tax Page 16
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42Sourcing Certification, the information showing the
A Council Grove resident rents a trailer
jurisdictions to which the direct mail is delivered, or a
from a rental business in Manhattan and
direct pay permit. In this situation, the printer must bill
takes possession of the trailer at the rental
the purchaser for state and local sales tax at the rate
business location in Manhattan. The
applicable to the location from which the flyers were
rental period is 45 days, for a lump sum rental payment
shipped, Hutchinson, Kansas.
of $250. The rental business should collect the 8.55%
rate of sales tax in effect for Manhattan (address of the
K
S
& U
T
R
L
business) on the rental proceeds of $250. If the rental
ANSAS
ALES
SE
AX
ATE
OCATOR
business delivered the trailer to the consumer’s Council
Sales and use tax rates and jurisdiction codes for
Grove address, the rental business would collect the
any location in Kansas are available from KDOR’s Sales
8.3% combined sales tax rate in effect at Council Grove,
Tax Rate Locator on our web site. You can obtain codes
instead of the local sales tax in effect in Manhattan.
and rates by entering an address or a zip code plus 4.
Retailers may also e-mail a customer address list to
UNIQUE SOURCING SITUATIONS
KDOR and we will provide the sales tax rates and
jurisdiction codes for each address. Visit our web site
Special sourcing rules and procedures apply to the
to see all our electronic business solutions.
sale of a direct mailing and to the sale of computer
software delivered electronically. This section explains
THE SALES TAX BASE
these rules and the sourcing certificates used for these
types of sales.
The sales amount to which sales tax is added is called
D
M
S
R
the sales tax base. The law uses the term gross receipts.
IRECT
AILING
OURCING
ULES
For a direct mailing to addresses in several locations,
G
— the total selling price or the
ROSS RECEIPTS
the purchaser of the mailing must provide the seller
amount received in money, credits, property or
with information showing the multiple jurisdictions to
other consideration valued in money.
which the mailing is to be delivered, or provide a “direct
S
— the total cost to the consumer,
ELLING PRICE
mail form,” available from our web site.
excluding discounts allowed and credited, but
including freight and transportation charges from
A business located in Hays, Kansas
retailer to consumer. Selling price includes the
purchases a direct mailing of advertising
cost of the property, materials, labor, or service
flyers from a printer located in Hutchinson,
used or expended, losses, overhead, and profit.
Kansas. The flyers are to be mailed from
Hutchinson to the business’s customers located at
Other aspects of a sale often affect the selling price
various addresses in Kansas and surrounding states.
or total cost to the consumer. The tax treatment of
common elements of a retail sale follows.
SITUATION #1: The purchaser provides mailing
addresses of its customers to the printer. The printer
will bill the purchaser for state and local sales taxes
SALES TAX TREATMENT OF SELECTED TYPES OF
applicable to the destination of the mailing, using the
SALES AND INCENTIVES
addresses to which the flyers were mailed. If 500 flyers
were mailed to Great Bend, the local sales tax would be
Using the definition of sales tax base above, this
due on the price of those 500 flyers at the rate in effect
section illustrates how to apply state and local sales tax
at Great Bend. If 200 more flyers were mailed to Larned,
to some of the more common types of sales and sales
the local sales tax would be due on the price of those
incentives.
200 flyers at the rate in effect at Larned.
C
S
SITUATION #2: Same situation as above, except the
ONSIGNMENT
ALES
purchasing business gives the printer a Direct Mail
If you receive property from another to sell on
Sourcing Certificate (ST-31) indicating that the purchaser
consignment, you are the retailer and are responsible
will assume the obligation to pay and remit the applicable
for the tax collection rather than the owner of the
tax on a direct pay basis. Having received a Direct Mail
consigned merchandise. This is true regardless of how
Sourcing Certification from the purchaser, the printer is
you receive your fee or commission.
then relieved of the obligation to collect and remit sales
tax on the direct mailing. The purchaser is then obligated
C
to remit directly the state and local sales tax applicable
OUPONS
to the mailing, based on the addresses to which the
There are two distinct types of coupons used by
mailing was delivered.
consumers — store coupons and manufacturer
coupons. The two types are treated differently for sales
SITUATION #3: Same situation as above, except the
tax purposes.
purchaser fails to provide to the printer a Direct Mail
16
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