Form Pub. Ks-1527 - Kansas Business Tax For Political Subdivisons (Page 19 of 42) in pdf

2) Utility provider sends to KDOR the customer’s

periods, please request that a check be issued.

completed ST-28B along with a completed

NOTE: Do not claim more in deductions than

Schedule for Refund of Sales Tax on Electricity,

the amount of tax due in any one filing period.

Gas or Water (ST-33). While most utilities send

exemption and refund requests to KDOR for

CLAIMING A UTILITY REFUND ON YOUR RETURN

approval, this is not required. A utility may approve

exemptions and refunds without KDOR review.

The following two examples illustrate how an

3) KDOR reviews the refund request and advises

approved utility refund should be claimed when you file

the utility provider in writing of the amount of

form type ST-36. The first example illustrates a refund

approved refund and how to claim the refund

involving both state and local (city and county) sales

deduction on their sales tax filing (see sample

letter below).

taxes. The second example illustrates a refund involving

only state sales taxes.

4) Utility provider advises customer of approval and

refunds the sales tax to its customer.

Note that the examples shown here are for

5) The utility provider claims the deduction when

illustration purposes only and may not contain

filing their sales tax. If KDOR has approved more

current sales tax rates. You can, however, use these

deductions than the amount of tax due for the

examples to assist you in filing your return electronically.

current filing period, then spread the deductions

See page 21 or go to our web site at to

out over two or three filing periods. If using the

determine the electronic filing option that is best for you.

deductions will require more than three filing

TATE AND

OCAL

TILITY

EFUND

ABC Utility of Topeka, KS submitted a refund request to KDOR for its customer XYZ, Inc. ABC Utility is

advised that KDOR approved a 45% exemption and a refund in the amount of $1,525.79 for XYZ, Inc.

Phone: 785-368-8222

Division of Taxation

915 SW Harrison St

Fax: 785-296-8974

Topeka KS 66625-2007

Web:

Department of Revenue

December 10, 2011

MR. JOE DOE

ABC UTILITY

101 MAIN

TOPEKA, KS 66612

RE: XYZ, Inc.

45% Exemp

Dear Mr. Joe Doe:

ABC Utility is authorized to make a refund of sales tax in the amount of $1,525.79 to XYZ, Inc. This refund is based on tax

previously remitted to this department on sales to electricity subject to exemption under the provisions of K.S.A. 79-3606.

This is not to be used as a credit memo on your Sales Tax Return.

You may take it as a deduction by dividing the allowable refund amount by the appropriate tax rate.

If the amount that has been identified as exempt is (State Tax Only) you will need to report the deduction on PART IV of Form

ST-36 when using this credit. Please write “Utility Exemption” on PART II, Line N when bringing over the exempted amount.

If the amount that has been identified as exempt is (State, County City or (State, County) or State, City) then you will need to

report the deduction amount allowed on PART II, Line N and write Utility Exemption) on Form ST-36 when using this credit.

Note: Each county and city must be given credit for the nontaxable sales.

ACCOUNT #

STATE

COUNTY

CITY

METER

1234567899

$1123.15

$190.72

$211.92

12345678

You must maintain an accurate and detailed record of the above for audit purposes.

Since the refund amount is for “state, county and city” taxes, ABC Utility will divide the refund amount by the

applicable tax rate for Topeka, 8.95% ($1,525.79 ÷ .0895 = $17,047.93). The $17,047.93 represents the amount of

sales that ABC Utility made to XYZ, Inc. upon which the $1,525.79 refund is based. Enter the $17,047.93 on line N,

Other allowable deductions, in Part II of form type ST-36. This amount is also entered in Part III under (Non-Utility)

Deductions, along with any other deductions, in Part III.

Form Pub. Ks-1527 - Kansas Business Tax For Political Subdivisons Page 19

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