Form Pub. Ks-1510 - Kansas Sales Tax And Compensating Use Tax Page 7
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42Exempt Entity Identification Numbers. To help
retailers identify the exempt buyers discussed in this
SALES TAX
section, KDOR will assign an Exempt Entity Identification
EXEMPTIONS
Number and issue a Tax-Exempt Entity Exemption
Certificate to qualified exempt buyers. On or after that
date, Kansas exempt entities claiming a sales or use
tax exemption must provide this completed exemption
Included with the taxable transactions in the previous
certificate (which includes their Tax Exempt Number) to
section were some of the exceptions, or exempt sales.
the retailer. See Pub. KS-1520 on our web site.
Other lawful sales tax exemptions fall into three general
categories. These are:
O
E
B
THER
XEMPT
UYERS
• buyers who are, and are not exempt,
Sales tax exemptions are also granted to the following
• specific items that are exempt, and
entities. Where applicable, the exemption certificate
• uses of an item which makes it exempt.
designed for that particular exemption is noted.
EXEMPT BUYERS
Certain Nonprofit Medical Educational Organizations —
The following 501(c)(3) organizations are exempt from
paying sales tax when buying items for the listed uses,
Direct purchases of goods or services by the
and also exempt from collecting sales tax when these
following entities are exempt from sales tax (for a
items are sold by or on behalf of the exempt organization
complete list see Pub. KS-1520, Kansas Exemption
for the stated purposes. This exemption is for goods
Certificates):
and merchandise only. These organizations must still
pay or collect sales tax on taxable services and
• The U.S. Government, its agencies and
admissions.
instrumentalities
• The state of Kansas and its political
• American Diabetes Association, Kansas Affiliate, Inc.
subdivisions, including school districts, counties,
• American Heart Association, Kansas Affiliate, Inc.
cities, port authorities, and groundwater
• American Lung Association of Kansas, Inc.
management districts
• Elementary and secondary schools
• Kansas Alliance for the Mentally Ill, Inc. and Kansas
• Noncommercial educational radio and TV
Mental Illness Awareness Council
stations
• Kansas Chapters of the Alzheimer’s Disease &
• Nonprofit blood, tissue, and organ banks
Related Disorders Association, Inc.
• Nonprofit educational institutions
• Kansas Chapters of the Parkinson’s Disease
• Nonprofit 501(c)(3)* historical societies
Association.
• Nonprofit hospitals
• National Kidney Foundation of Kansas and Western
• Nonprofit 501(c)(3)* museums
Missouri.
• Nonprofit 501(c)(3)* primary care clinics/health
• HeartStrings Community Foundation
centers
• Cystic Fibrosis Foundation, Heart of America
• Nonprofit 501(c)(3)* religious organizations
Chapter
• Nonprofit 501(c)(3)* zoos
• Spina Bifida Association of Kansas
• CHWC, Inc.
*
The 501(c)(3) designation refers to an Internal Revenue Code section
exempting certain organizations from income tax.
• Cross-Lines Cooperative Council
• Dreams Work, Inc.
Exception: When the state of Kansas or nonprofit
• KSDS, Inc.
hospital operates a taxable business (such as a public
• Lyme Association of Greater Kansas City, Inc.
cafeteria or gift shop), or when a political subdivision
• Dream Factory, Inc.
sells or furnishes the utilities of electricity, gas, heat or
• Ottawa Suzuki Strings, Inc.
water (except certain water retailers - see next column),
• International Association of Lions Clubs
non-inventory items purchased for use in these taxable
• Johnson County Young Matrons, Inc.
businesses are taxable to the otherwise exempt group.
• American Cancer Society, Inc.
• Community Services of Shawnee, Inc.
To claim its exemption, the exempt buyer must
• Angel Babies Association
complete and furnish the appropriate exemption
certificate to the seller (see page 13). The sale must
Certain Water Retailers — Public water suppliers who
also be a direct purchase — billed directly to the exempt
pay the Clean Drinking Water Fee are exempt on all
buyer and paid for by a check or voucher from the
purchases of property or services for that utility. See
exempt buyer. Purchases made by agents or employees
NOTICE 04-08.
of an exempt buyer with their personal funds are taxable.
Exception: Purchases of hotel rooms by U.S.
Diplomatic Tax Exemption — Certain foreign missions
government employees on official business are exempt,
and officials are entitled to a tax exemption based on
regardless of the method of payment.
reciprocal treaty agreements. Those entitled to tax
7
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