Form Pub. Ks-1560 - Kansas Business Taxes For Schools & Educational Institutions Page 14
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37the sales tax on them. Paying sales tax on resale
level and amount of student activity fees paid. The fees
inventory merely increases the cost of goods sold.
to obtain or replace this type of card are taxable.
When buying your resale inventory you should
ISOLATED OR OCCASIONAL SALES
provide the vendor with a Resale Exemption Certificate,
(ST-28A). By using this certificate you have documented
An instance where a school or educational institution
to the seller that: 1) you are a registered retailer; and
2) that the items being purchased will be resold, and
might not be required to collect sales tax on a retail
are not for personal or other non-exempt use.
sale of goods, admissions or taxable services is when
its sale qualifies as an isolated or occasional sale.
GOLF COURSES
Any sale by a Nonprofit Entity (such as a school)
that meets the following requirements qualifies
Several state universities operate golf courses.
for the isolated or occasional sales tax exemption:
These courses are used not only to train golf teams
and/or students in the management and design of golf
a. All proceeds derived from the fund-raising event shall
courses, but are also open to the public. Fees charged
be used by the nonprofit entity to further its exempt
to teach or instruct students in the game are not
purpose.
taxable as long as a taxable item (golf course
b. The fund-raising event shall not be in direct
admission, clubs or other tangible personal property)
competition with a for-profit business (in the same
is not included in the fee. The university must collect
area or at same event).
sales tax on all of its retail sales of admissions and
c. The fund-raising event shall not take place at a retail
goods, including but not limited to:
business’s premises during regular business hours.
d. Sales at the fund-raising event shall be made by
• Driving range fees
members or the nonprofit entity and not by a retailer,
• Golf cart or club rentals
• Greens fees and golf memberships*
or other for-profit business.
• Pro shop sales - equipment, sportswear, etc.
e. If a not-profit entity buys goods to resell at a de
• Restaurant/snack bar sales
minimus fund-raising event, the nonprofit entity
• Spectator fees
SHALL PAY SALES TAX on the purchases unless the
entity is a religious organization. A religious
*
Only the fees charged by a political subdivision (city, school
organization may purchase goods without sales tax
district, etc.) for participation in sports and other recreational
intended for resale at a de minimus fund-raising
activities are exempt from sales tax at K.S.A. 79-3603(m).
event. A non-profit entity shall not be required to
accrue sales tax on items that are donated for sale
ID CARDS
at its fund-raising event.
f. The gross receipts from sales at the nonprofit entity’s
Most secondary schools and educational institutions
de minimis fund-raising events during any prior
issue some type of student identification card to their
calendar year shall not exceed $25,000. If the gross
students. If there is no admission granted or tangible
receipts exceeds $25,000 in any calendar the
personal property transferred, the fee charged to issue
nonprofit entity shall register as a retailer and collect
an ID card or reissue a lost or stolen card is not subject
sales tax on all future sales.
to sales tax. In these instances, the card remains the
g. Each nonprofit entity shall be limited to not more than
property of the school or educational institution.
six fund-raising events of not more than a day’s
duration, during any 12-month period.
However, if the card has another use in addition to
identification (such as use of school gym facilities, food
purchases), the student ID card fee will be taxable. In
LABOR SERVICES
this situation, a fee to issue or replace a lost or stolen
card is also subject to sales tax.
Like the sale of admissions and tickets, the sale or
providing of taxable labor services for a fee by a school,
You require all students to carry a photo
educational institution, alumni group, PTA or PTO is
ID card issued by the school. You take the
subject to sales tax. Examples of taxable labor services
digital photo and print/laminate the card
often provided or offered by school and school
for a fee of $5, and also charge $5 to
organizations are car washes and vehicle repair.
replace the card. This card is for ID purposes only. The
$5 charge for the card is not subject to sales tax.
Nontaxable Fees and Services
You issue a student activity card to all
Some fees and services are not subject to sales tax
students. The card is a photo-ID, and also
because they do not involve the installation, application,
entitles the student to admission to games
repair, service or maintenance of tangible personal
and other school events based on the
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