Form Pub. Ks-1510 - Kansas Sales Tax And Compensating Use Tax Page 33
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42necessary to validate your request for refund, such as
past years. Interest rates for years not shown here can
a completed exemption certificate. The seller is allowed
be found on KDOR’s web site.
60 days to respond. [K.S.A. 79-3650(b)]
Year
Monthly Rate
APR
However, when a vendor refuses to refund the tax,
2013
0.333%
4%
or is no longer in business, you may apply directly to
2012
0.417%
5%
KDOR for your refund. Use Form ST-21, available from
2011
0.417%
5%
our web site. You must include proof that you paid both
2010
0.417%
5%
the invoice and the sales tax, the completed exemption
2009
0.500%
6%
certificate, and evidence that a refund was NOT
2008
0.750%
9%
received from the vendor. Please allow four to six weeks
2007
0.750%
9%
for a reply and/or refund.
The interest on the January 2010 sales
tax return of $400 not paid until July 28,
WHEN RETURNS ARE LATE
2010 is calculated as follows. Six months
X 2010 interest rate of .417% X $400 tax
Sales and Retailers’ Compensating Use Tax are often
due = the interest due of $10.00.
referred to as “trust fund” taxes. As a registered retailer
you collect the tax from your customers and then hold it
Returned Check Fee
in “trust” until it is remitted to KDOR. These consumer-
A fee of $30 (plus postage costs for a registered
paid taxes are not an expense of your business. It is
letter) is charged on all returned checks. This fee is in
your responsibility to file returns and pay the tax timely.
addition to any other penalty or interest.
When the returns are late, the penalty and interest (late
charges) are a business debt that decreases your profit
Waiver of Penalty
margin. Penalty and interest are figured as a percentage
of the tax due. Returns filed on time without payment of
If your return is late due to an event beyond your
ax have the same penalties as returns filed late.
control, you may request a waiver of the penalty. Simply
write a letter giving the specific circumstance(s) that
If you are filing a return after the due date, penalty
caused the delinquency and request that the penalty
and interest will be applied using the rates that follow.
be abated. Be sure to include in your letter your tax
The TeleFile and WebFile filing systems automatically
account number, the filing period, and a telephone
calculate any late charges due.
number where you may be reached during normal
business hours. Send your request with the billing that
Penalty
you received for the late charges.
The penalty on a late sales or use tax payment is
1% for each month or portion thereof that the payment
IMPORTANT: The interest due must be paid
is late, up to a maximum of 24%.
before a request for waiver of penalty may be
considered or approved. Interest is not subject to waiver.
A January 2010 sales tax return (due
February 25, 2010) upon which $400 tax
PERSONAL LIABILITY FOR UNPAID TAXES
is due, is not paid until July 28, 2010. The
penalty is six percent (6%) of the unpaid
tax or $24 (6 months X 1% X $400 = $24). The interest
Every retailer is liable to the state of Kansas for
calculation for this example is shown in the next column.
payment of the sales and/or compensating use tax
collected from its customers. You are personally liable
A penalty of 50% may be assessed when, with
for any unpaid sales and/or compensating use tax
fraudulent intent, a taxpayer fails to pay any tax,
balance regardless of your business structure (sole
or make, render or sign any return, or to supply
proprietorship, partnership, corporation, or limited
any information within the time required by law.
liability company). Corporate officers and directors of a
corporation, like sole proprietors and partners, are
Interest
personally liable for the sales and use tax due during
the period they hold office.
In addition to the late penalty, interest is charged for
each month, or fraction thereof, that the return is not
Should a business fail to pay its taxes, any individual
who is responsible for collection or payment of sales or
filed or the tax not paid. Since 1998 the annual
percentage rate (APR) for interest has been has been
compensating tax, or who is responsible for control,
tied to a federal underpayment rate, and is therefore
receipt, custody, or disposal of sales and use tax funds
subject to change each calendar year. The following
due the state of Kansas may be held personally liable
for any unpaid tax, penalty, and/or interest.
list provides the rates for the current year and some
33
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