Form Pub. Ks-1560 - Kansas Business Taxes For Schools & Educational Institutions Page 4
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37in contrast to the exemption for schools and educational
institutions which is also available to schools located
SALES TAX EXEMPTIONS
outside Kansas.
FOR SCHOOLS AND
Educational Institution
EDUCATIONAL INSTITUTIONS
K.S.A. 79-3602(l), defines an educational institution
as a nonprofit school, college, or university that offers
educational courses at a level above the twelfth grade
DEFINITIONS
and meets certain requirements fixed by the statute.
Included are:
For the purpose of qualifying for a Kansas sales or
use tax exemption, the following definitions apply.
• public community colleges,
• universities,
School
• vocational or area vocational-technical schools,
and
A school is a nonprofit, public or private, elementary
• state educational institutions.
or secondary instructional institution for pupils. School
means an institution offering education at grade levels
This term educational institution completes the
kindergarten through twelfth grade (commonly referred
continuum of exemption from elementary school through
to as K-12 education), including but not limited to:
colleges and universities. Both in-state and out-of-state
nonprofit institutions are covered by this exemption.
• public primary or elementary schools, junior high
or middle schools, and high schools;
N
E
A
& F
ONPROFIT
NDOWMENT
SSOCIATIONS
OUNDATIONS
• nonprofit schools educating a specific segment
of students (such as a school for the blind); and
Four distinct types of ancillary nonprofit entities
• nonprofit private schools affiliated with a
operating for the benefit of an educational institution or
particular religious organization or educational
for an educational purpose are included in the definition
philosophy.
of an educational institution. These are:
Schools from other states as well as Kansas schools
1) Nonprofit endowment associations and
are included in the definition and are therefore also
foundations
organized
and
operated
exempt on their Kansas purchases. Out-of-state schools
exclusively to receive, hold, invest and
and educational institutions that have not been issued
administer moneys and property as a
an exemption by KDOR may use the Designated or
permanent fund for the support and sole
Generic Exemption Certificate (ST-28) to claim
benefit of an educational institution;
exemption from Kansas sales tax.
2) Nonprofit trusts, foundations and other entities
School District
organized and operated principally to hold and
own receipts from intercollegiate sporting
The term school generally means an individual
events and to disburse such receipts, as well
learning center, while a school district is the administrative
as grants and gifts, in the interest of collegiate
body for one or more schools. While enjoying much the
and intercollegiate athletic programs for the
same treatment for sales tax purposes, a Kansas public
support and sole benefit of an educational
school district is exempt from paying sales tax on most
institution;
purchases because it is a political subdivision of
3) Nonprofit trusts, foundations and other entities
Kansas (able to levy ad valorem taxes). It will use the
organized and operated for the primary
Tax-Exempt Entity Exemption Certificate (PR-78KS) to
purpose of encouraging, fostering and
claim an exemption on district purchases, including those
conducting scholarly investigations and
for a day care or after school care program, preschool,
industrial and other types of research for the
Head Start, or other pre-kindergarten program operated
support and sole benefit of an educational
by a Kansas school district.
institution; and
Kansas public school districts should also obtain (from
4) A group of educational institutions that
our web site) Publication KS-1527, Kansas Sales and
operates exclusively for an educational
Use Tax for Political Subdivisions, and use it as a guide
purpose (such as the NCAA).
to understanding how Kansas taxes apply to them.
Endowment associations are chartered to own,
IMPORTANT: Only Kansas school districts
control, or otherwise administer funds that are
are exempt; school districts from other states
bequeathed, donated, or held in trust for the benefit of
must pay sales tax on their Kansas purchases. This is
a college or university. Nearly all nonprofit endowment
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