Form Pub. Ks-1510 - Kansas Sales Tax And Compensating Use Tax Page 4
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42If you are engaged in any of these activities, you
Coins,
Bullion,
Stamps,
Antiques
and
must collect sales tax from your customers. What follows
Collectibles. These and similar items sold at retail are
is a detailed discussion of each of these general
subject to sales tax. Any retailer, including banks, pawn
categories with examples. The law (K.S.A.) or regulation
shops, collectors, dealers, etc. must collect sales tax
(K.A.R.) on which it is based is also included.
on the total gross receipts received (K.A.R. 92-19-56).
The exchange of currency or coins at face value or at
the current exchange rate is not taxable.
RETAIL SALE, RENTAL or LEASE of TANGIBLE
PERSONAL PROPERTY
Computer Software. Sales of computer software
and the services of modifying, altering, updating, or
To be taxable, the sale must first be a retail sale as
maintaining computer software are subject to sales tax.
defined below.
Computer equipment and hardware are also taxable.
Since January 1, 2005 sales and/or services relating to
R
— an exchange of tangible personal
ETAIL SALE
“customized” software has been exempt. See
property (goods, wares, merchandise, products
Information Guide EDU-71R on our web site.
and
commodities)
for
money
or
other
consideration to the final user or consumer
Meals and Drinks. Meals or drinks sold
occurring within the legal boundaries of the state
to the public at any restaurant, private
of Kansas.
club, drinking establishment, catered
event, café, diner, dining car, hotel, etc.
Sales for resale (purchase of inventory), and sales
are taxable. Drinks containing alcoholic
to wholesalers and others who are not the final
liquor are subject to the Liquor Drink Tax
consumer are not taxed. However, these sales must be
(see page 36) rather than sales tax. Cereal Malt
accompanied by an exemption certificate — see
Beverage license holders (3.2% beer) do not collect
Exemption Certificates herein. Kansas sales tax also
the Liquor Drink Tax. Instead, they collect Kansas
does not apply to goods shipped to another state. See
Retailers’ Sales Tax on their drink sales. For more
Out-of-State Sales, herein.
information on the sale of meals and drinks consult Pub.
KS-1540, Kansas Business Taxes For Hotels, Motels
T
— any item to which
ANGIBLE PERSONAL PROPERTY
and Restaurants. Exception: Free meals furnished to
you can readily attach a monetary value (food,
employees of public eating places are not taxed if the
clothing,
furniture,
vehicles,
computers,
employee’s work is related to the furnishing or sale of
equipment, books, tapes, etc.).
such meals. Reduced cost employee meals are subject
to tax based on the reduced price.
Tangible personal property has a physical presence,
it can be owned or leased and can be moved. Tangible
Prepaid Telephone Cards. Sales of prepaid
personal property is different from intangible personal
telephone calling cards or authorization numbers and
property (stocks and bonds) or real property (land or
the recharge of the card or number are taxable.
buildings).
Exception: There is no sales tax on the 911 service
fee imposed on prepaid telephone cards.
Other types of taxable sales of tangible personal
property listed in Kansas sales tax law follow. Exceptions
Motor Vehicles and Trailers. The sale or exchange
are also noted.
of motor vehicles is a taxable transaction. When you
buy a car, truck, or other vehicle from a registered
Construction Materials. Materials
dealer, you must pay the sales tax to the dealer. When
and supplies sold to contractors, sub
you buy a motor vehicle or trailer from an individual,
contractors, or repairmen for use by them
you must pay the sales tax to the county treasurer upon
in construction projects are subject to
registration. The rate of tax is determined using the
sales tax. Exception: Materials purchased
sourcing rules for motor vehicles outlined herein. For
by a contractor using a special project exemption
more information on the sale of motor vehicles see Pub.
number issued by KDOR or its authorized agent are
KS-1526, Sales and Use Tax for Motor Vehicle
exempt.
Transactions, and EDU-31A, How Kansas Motor Vehicle
Dealers Should Charge Sales Tax on Vehicle Sales.
Coin-Operated Devices. Sales made
Exceptions: The following transactions are not taxed.
from
any
coin-operated
device,
– Motor Vehicles, semi trailers, pole trailers or aircraft
dispensing
or
providing
goods,
sold to a bona fide resident of another state, provided
amusement, or services are taxable.
the vehicle is not registered in Kansas and is removed
Examples include any type of vending
from Kansas within 10 days of the purchase;
machine, coin-operated telephones and car washes,
and video or arcade game machines. Exception: Coin-
– Motor vehicles or trailers transferred by a person to
operated laundry services (washers or dryers) are
a corporation solely in exchange for stock or
exempt from sales tax. Laundry detergent, bleach, etc.
securities in that corporation (the original sale is
purchased from a vending machine are taxable.
taxable — the transfer to the corporation is not);
4
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial