Form Pub. Ks-1560 - Kansas Business Taxes For Schools & Educational Institutions Page 16
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37CAUTION: Booster clubs and similar
transactions discussed herein. The sale of tickets or
organizations comprised of students, parents
chances for a raffle is not subject to sales tax.
and teachers do not qualify to claim exemption
as a PTA or PTO. See Booster Clubs, and School Clubs
RESTAURANTS, MEALS
and Organizations.
As has been discussed, the exemption for schools
PHOTOCOPYING, PRINTING & DUPLICATING
and educational institutions does not extend to their
individual employees. Purchases of restaurant meals
Photocopying, printing and duplicating services are
made by employees with their personal funds are not
subject to sales tax. Print shops operated by schools
exempt. This is true even when the employee is on
and educational institutions must charge sales tax on
official business for the school, such as a luncheon for
all print jobs billed to student groups, outside entities
school administrators, or when the meal or banquet is
and the general public. Sales to an educational
a school activity, such as an awards dinner.
institution or to another exempt entity are not taxable.
Like hotel and motel charges, rental car fees, etc.
The university print shop charges $50 to
the purchase of restaurant meals for school employees
print a program for an alumni group. This
are exempt only when purchased on their behalf directly
charge is subject to sales tax. Playbills and
by the school or educational institution, using the
definition of a direct purchase. If the employee is in
programs ordered by the university’s
possession of a credit card for the school, the card
drama department are exempt as a direct purchase.
should not be used for restaurant meals except as
authorized by the issuing school authority.
The library has several copying machines
available to students. The copier vends
copies at 10 cents each. These copies
SCHOOL BUSES/FUELS
are taxable - included in the 10 cents per
copy is the applicable sales tax due. If the copier is
owned by the library or university, it must report and
General Rules
pay the sales tax; if owned by another entity, that
business will report and pay the tax on the copy sales.
The direct purchase, lease or rental of a school bus
See also Vending Machine Sales.
is exempt when purchased, leased or rented by tax-
exempt entity like a school or school district. A nonprofit
school or a school district is also exempt from paying
Exception: The fee charged for the first copy of a
sales tax on its direct purchases of parts and repair or
student’s transcript or other document is not subject to
maintenance services for a school bus.
sales tax. This is considered to be the purchase of
information, which is not taxable. However, subsequent
Fuels used in school buses (whether the bus is owned
copies of a transcript or other document are considered
by a school, school district or is privately owned) are
to be the sale of copying services and are therefore
not subject to the motor fuel tax, having been granted
subject to sales tax.
an exemption under K.S.A. 79-3453. See Motor Fuel
Tax. Unless eligible to purchase dyed diesel fuel, the
A former student requests six copies of
motor fuel tax is included in the price paid for gasoline,
his official transcript mailed to him. You
diesel and other special fuels at the pump by all
charge $3.00 for each copy, postage
consumers. School bus operators (school districts and
included. The tax rate at the former
others leasing buses to schools) may apply to
student’s Kansas address is 7.3%. Your bill for the
KDOR for a refund of the motor fuel tax paid on fuels
transcripts will be (5 X $3.00 X .073) + $3.00 (first copy
for use in school buses.
not taxed) = $15.00 + 1.10 tax + $3.00 = $19.10. If the
former student resides in another state, no Kansas tax
School Bus Defined
is due. See also Out-of-State Sales.
A school bus is defined as any motor vehicle designed
RAFFLES
for carrying more than ten passengers and used for
the transportation of persons, and which is:
A raffle is a fund-raising event in which a number of
1) Privately owned and contracted for, leased or
people buy tickets or chances to win a prize. The winner
hired by a school district or nonpublic school for
is usually selected by a drawing. Sales tax is due on the
the transportation of pupils, students or school
purchase of goods or merchandise to be raffled; sales
personnel to or from school or to or from school-
tax is not due on any prize that is not taxable, such as a
related functions or activities; or
cruise or cleaning service. The subsequent transfer of
2) owned and operated by a school district or
the item to the winner is considered to be a gift from the
nonpublic school which is registered under the
organization to the winner, and therefore is also not
provisions of K.S.A. 8-126 et seq., and
subject to sales tax, except certain motor vehicle
16
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