Form Pub. Ks-1560 - Kansas Business Taxes For Schools & Educational Institutions Page 3
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37imposed by a city and/or county. Sales tax rates vary
from locality to locality and currently range from 6.3%
INTRODUCTION TO
to 9.3%. Local (city and/or county) sales tax rates may
KANSAS SALES TAX
change quarterly. Kansas is one of many states plus
the District of Columbia participating in the Streamlined
Sales Tax Project and has enacted legislation
This publication was written to assist those engaged
incorporating the definitions and tax structure into
in educating students of all ages in understanding how
Kansas sales tax law.
Kansas sales and use taxes apply to their dual roles as
an exempt entity and as a retailer. Throughout this
The rate of tax charged on a retail sale of goods or
publication we will cite or refer to the statute (K.S.A.) or
taxable services is generally determined by where the
regulation (K.A.R.) applicable to that section. These laws
customer takes delivery of the product or service.
and regulations are listed on page 28.
Retailers selling at various Kansas locations must
charge the combined state and local rate in effect at
each location. Retailers shipping goods to a Kansas
WHAT SALES ARE TAXABLE?
customer in another jurisdiction will charge the tax rate
in effect at the customer’s location. Contractors will
Kansas sales tax applies to three general types of
charge the tax rate in effect at the job site on the taxable
transactions.
labor services portion of the contract (regardless of its
• The retail sale, rental or lease of tangible
size).
personal property;
• The fees for labor services to install, apply,
To assist retailers in collecting the correct sales tax
repair, service, alter or maintain tangible
rate for the destination or source of the sale, KDOR
personal property; and
publishes a complete list of state and local tax
jurisdictions and rates. Pub. KS-1700, Sales and Use
• The sale of admissions to places providing
Tax Jurisdiction Code Booklet, and its quarterly updates
amusement, entertainment or recreation.
are available on our web site.
A retail sale is a sale to the final consumer or user.
Tangible personal property is any item to which you
RETAILER AND CONSUMER RESPONSIBILITIES
can attach a monetary value, has a physical presence
and can be moved. Tangible personal property is
different from intangible property (stocks and bonds)
Kansas retailers are required by law to collect the
or real property (land and buildings). Examples of
full amount of sales tax due on each sale to the final
tangible personal property purchased or sold by schools
user or consumer and remit it on a regular basis to
are books, candy, pictures, storage sheds, T-shirts, and
KDOR. When added to the purchase price of taxable
yearbooks. The labor services that are taxable in
goods or services, the sales tax is a debt from the
Kansas are only those services enumerated in the law
consumer to the retailer. As such, the sales tax is
and listed above. Examples include appliance or car
recoverable by the retailer from the customer in the
repair, car washes, parking lot painting, and the repair
same manner as any other debt.
or remodel work of a commercial building. Taxable
admissions include tickets to a concert, dance, fun
Kansas consumers are likewise obligated to pay the
night, play or sporting event.
full amount of sales or use tax due on all taxable
purchases. If the purchase is from a Kansas retailer,
As a general rule, schools and educational
the Kansas Retailers’ Sales tax must be paid to the
institutions are exempt on their direct purchases of
retailer. When tangible personal property is purchased
tangible personal property or taxable labor services for
from a retailer in another state, a Kansas Compensating
school purposes. However, schools, educational
Use tax may be due. See Compensating Use Taxes,
institutions and organizations that support them also
herein.
make retail sales of products, taxable services or
admissions. In this capacity, the school or organization
For every sale of merchandise or taxable services,
is a retailer and must register with KDOR (Kansas
a Kansas retailer must either collect the total amount of
Department of Revenue) to collect sales tax from
sales tax due or obtain documentation as to why a
customers. See Reporting and Paying Sales Tax.
particular sale is exempt. A consumer who is entitled to
an exemption from sales or use tax is, therefore,
SALES TAX STRUCTURE
obligated to provide this documentation, and should not
demand that a retailer exempt a sale without it.
Information on how to properly claim the sales and use
The Kansas sales tax rate is a combination of the
tax exemptions are discussed on the next page.
state rate (currently 6.3%) plus any local sales tax
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