Form Pub. Ks-1510 - Kansas Sales Tax And Compensating Use Tax Page 21
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42part (page 9), for which you have a completed Ingredient
or Component Part Exemption Certificate (ST-28D) in
COMPLETING THE ST-16 FORM TYPE
your records.
LINE 1 — Gross Sales/Receipts. Enter on line 1
(e) Sales of items consumed in the production of
the total of all sales made during the period, both taxable
tangible personal property: Enter sales of items
and nontaxable. DO NOT include the sales tax collected
which meet the definition of “property that is consumed”
in this figure. If you bill your customers “all applicable
for which you have a completed Consumed in Production
taxes included,” or if the tax is included in your total
Exemption Certificate (ST-28C), in your records.
sales figure, divide the total sales, including tax, by “1”
plus the tax rate. The result will be your gross sales
(f) Sales to nonprofit hospitals, or nonprofit blood,
without the sales tax.
tissue or organ banks: Sales of goods or services to
public or nonprofit hospitals or to blood, organ or tissue
You own 20 vending machines in a city
banks for which you have a Tax-Exempt Entity Exemption
where the combined state and local sales
Certificate (PR-78KS). Non-inventory purchases by a
tax rate is 6.9%. Your total sales in June
taxable business operated by the hospital, blood, organ
are $4,600. Since the 6.9% sales tax is
or tissue bank – such as a public cafeteria or gift shop
automatically included in the price paid for vended
– are taxable.
products, you must calculate the amount of your sales
without the tax. To do this, divide $4,600 by 1.069 =
(g) Sales to nonprofit educational institutions:
$4,303.08. Your gross sales (without the tax) to report
Sales of goods or services to nonprofit educational
on line 1 of Form ST-16 is $4,303.08.
institutions for which you have a Tax-Exempt Entity
Exemption Certificate (PR-78ED). Purchases by agents
LINE 2 — Merchandise Consumed. When you
or employees with their personal funds, and purchases
remove merchandise from your inventory to use
of materials by a school to construct or repair a
personally or as a gift, you become the final consumer
dormitory are subject to sales tax.
of the item(s) and must pay the sales tax due. However,
the amount to enter on line 2 is your COST for the item,
(h) Sales to qualifying sales tax exempt religious
not its retail price. DO NOT report the cost of inventory
and nonprofit organizations: Sales of goods or
you have purchased for resale on line 2.
services to religious and other nonprofit organizations
who have been granted a sales tax exemption. These
Part II. If line 1 includes sales that are not taxable
sales must also be supported in your tax records by a
or exempt sales, report these deductions in Part II of
Tax-Exempt Entity Exemption Certificate (PR-78RO).
the ST-16. When taking a deduction, be sure it is
supported in your records by the required documents,
(i) Sales of farm machinery and equipment,
such as a completed exemption certificate or out-of
replacement parts and service: Sales of farm
state delivery slip. If you are unsure about an exemption,
machinery and equipment, repair and replacement
see Pub. KS-1520, Kansas Exemption Certificates, or
parts, and labor services performed to repair or maintain
contact KDOR. The allowable deductions are:
farm machinery and equipment. Farm machinery and
equipment does NOT include any passenger vehicle,
(a) Sales to other retailers for resale: Sales made
ATV, truck, truck tractor, trailer, semitrailer or pole trailer
to other retailers for which you obtained a properly
other than a farm trailer. To verify the exemption, the
completed Kansas Resale Exemption Certificate
buyer must either sign the invoice certifying the
(ST-28A).
purchase will be used only in farming and ranching, or
complete an Agricultural Exemption Certificate (ST-28F).
(b) Returned goods, discounts, allowances and
trade-ins: Sales of merchandise sold and subsequently
(j) Sales of integrated production machinery &
returned when the sale occurred in one reporting period
equipment: Sales of machinery and equipment used
and the return is in a subsequent reporting period.
in an integrated production operation at a Kansas plant
or facility that are an integral or essential part of its
(c) Sales to the U.S. Government, state of Kansas,
process to manufacture, process, fabricate, finish, or
and Kansas political subdivisions: Enter sales made
assemble items for wholesale or retail distribution.
to these exempt entities for which you have Tax-Exempt
Include also sales of repair and replacement parts and
Entity Exemption Certificate (PR-78KS). Only direct
the labor services to install, repair or service said
purchases qualify for exemption; sales to agents or
machinery and equipment. Exempt sales must be
employees using their personal funds are taxable,
documented with a completed Integrated Production
except for purchase of hotel/motel rooms for U.S.
Machinery & Equipment Exemption Certificate (ST-201).
Government purposes. Do not include sales of property
or services that are for a political subdivision’s utility
(k) Sales of alcoholic beverages: Restaurants and
department, since these sales are generally taxable.
private clubs selling alcoholic beverages will enter their
alcoholic drink sales (exclusive of the Liquor Drink Tax).
(d) Sales of ingredient or component parts of
This is the same amount that is entered on line 1 of the
tangible personal property produced: Sales of items
Liquor Drink Tax return for the same filing period.
that meet the definition of an ingredient or component
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