Form Pub. Ks-1526 - Kansas Business Taxes For Motor Vehicle Transactions Page 16
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44Farm Trucks
RELATED
Kansas law does allow an exemption from sales tax
TRANSACTIONS
for vehicles defined as an implement of husbandry.
However, implements of husbandry are subject to sales
tax when tagged for operation on streets and highways
including farm tags:
SALES TO FARMERS AND RANCHERS
... “Implement of husbandry” means every vehicle
designed or adapted and used exclusively for agricultural
Motor vehicles are a necessary and integral part of
operations, including feedlots, and only incidentally
agribusiness. Trucks and trailers are needed to transport
moved or operated upon the highways. Such term shall
animals, grain, milk or other agricultural commodities.
include, but not be limited to:
However, the statutory definition of exempt farm
machinery and equipment (K.S.A. 79-3606(t)) specifically
(1) A farm tractor;
EXCLUDES passenger vehicles, trucks, truck tractors,
(2) a self-propelled farm implement;
trailers, semitrailers, or pole trailers. Only farm trailers
(3) a fertilizer spreader, nurse tank or truck permanently
and an implement of husbandry, as defined below, may
mounted with a spreader used exclusively for dispensing
be purchased as farm machinery and equipment.
or spreading water, dust or liquid fertilizers or
agricultural chemicals, as defined in K.S.A. 2-2202, and
Farm Trailers
amendments thereto, regardless of ownership;
(4) a truck mounted with a fertilizer spreader used or
A trailer may be exempt from sales or use tax as farm
manufactured principally to spread animal dung;
machinery and equipment. K.S.A. 8-126(z) defines a
(5) a mixer-feed truck owned and used by a feedlot, as
farm trailer as any trailer or semitrailer designed and
defined in K.S.A. 47-1501, and amendments thereto,
used primarily as a farm vehicle. As outlined in Revenue
Ruling 19-1997-3, there are two tests that must be met
and specially designed and used exclusively for
dispensing food to livestock in such feedlot.
for exemption of a trailer as a farm trailer. It must be: 1)
used only in farming and ranching, and 2) designed to
allow for farm or ranch use.
IMPORTANT: The purchase of a truck that does
not contain a fertilizer spreader, nurse tank,
Used Only In Farming and Ranching
mixer-feed, etc. is not exempt from sales tax. For
example, the purchase of a truck and a subsequent
The buyer’s certification on the Agricultural Exemption
purchase (two separate transactions) and mounting of
Certificate (ST-28F) is sufficient to satisfy the first test.
the spreader, tank, etc. does not exempt the original
The trailer must be for the farmer’s or rancher’s own
purchase of the truck.
use in their farming or ranching operation. A trailer used
to haul commodities, livestock or other goods for others,
Property Installed or Mounted
or used for a commercial purpose other than farming
and ranching are uses that are incompatible with the
Kansas state and local sales tax is imposed on the
exempt use.
total selling price of each motor vehicle or trailer and
includes all tangible personal property mounted,
Buyers who will use a trailer for an incompatible use
installed, applied or otherwise attached or affixed to the
are required to pay sales or use tax on it, and are not
motor vehicle/trailer. K.A.R. 92-19-30a provides that,
allowed to claim an exemption based on the exemption
“the retailer shall not exclude or deduct for the tangible
for farm and ranch machinery or equipment. Should an
personal property, regardless of how any contract,
exemption later be disqualified, the buyer will owe the
invoice or other evidence of the transaction is stated or
retailers’ sales or use tax on the original purchase price,
computed, and whether separately charged or
plus penalty and interest.
segregated on the same contract or invoice.”
A cattle rancher is buying a livestock trailer
A farmer is buying a new truck with a
to haul cattle. This trailer will be exempt
dealer-installed grain box. The truck and
as a farm trailer provided the trailer will
the grain box are both subject to the
not be used for any other purpose. The
applicable state and local sales tax,
farmer’s use of this trailer to haul commodities for
despite the fact that the grain box may qualify for
another would make the purchase taxable.
exemption as farm machinery and equipment.
Designed For Farm and Ranch Use
However, the sale of farm machinery and equipment
is exempt from sales tax when the sale is not in
Trailers such as grain, flatbed, dump, tank, and van
connection with the sale of a motor vehicle.
are designed to allow for farm and ranch work. When
only used in farming and ranching, the purchase is
A dealer sells and installs a grain box on
exempt from sales and use taxes. Converter gears that
a truck owned by a farmer. The sale and
are utilized to facilitate the transport of farm trailers would
installation of the grain box are exempt
also be exempt as farm machinery.
from sales tax as farm machinery and
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