Form Pub. Ks-1526 - Kansas Business Taxes For Motor Vehicle Transactions Page 17
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44equipment. The dealer shall accept an Agricultural
• Sale to ICC carrier or a foreign government
Exemption Certificate (ST-28F) from the farmer.
• Sale to a bona fide nonresident of Kansas
registering the aircraft out of state within 10 days
• The isolated or occasional sale of an aircraft.
ALL TERRAIN VEHICLES (ATVs)
The major exception to the general rule is sales of
All-terrain vehicles do not qualify for the farm
aircraft, repair parts or labor services to a certified or
machinery and equipment sales tax exemption.
licensed carrier (or its agent) of persons and/or property
involved in interstate or foreign commerce, or to a foreign
All-terrain vehicle means any motorized nonhighway
government.
vehicle 48 inches or less in width, having a dry
weight of 1,000 pounds or less, traveling on three
Cessna sells an aircraft to U.S. Air, a
or more low-pressure tires, having a seat
licensed carrier in interstate commerce.
designed to be straddled by the operator. As
The sale is exempt from sales tax. To
used in this subsection, low-pressure tire means
document this exempt sale, Cessna will
any pneumatic tire six inches or more in width,
obtain a completed Aircraft Exemption Certificate
designed for use on wheels with rim diameter
(ST-28L) from the airline.
of 12 inches or less, and utilizing an operating
pressure of 10 pounds per square inch or less as
The second exception to the general rule is the sale
recommended by the vehicle manufacturer.
of an aircraft to a nonresident of Kansas when the
(Emphasis added.)
aircraft is not to be registered or based in Kansas, and
the aircraft will not remain in Kansas more than 10 days
Although often used on a farm or ranch, ATVs are
from the date of purchase. This exception is identical to
not farm machinery/equipment and are therefore subject
the motor vehicle exception for nonresidents.
to Kansas sales or use taxes. See NOTICE 06-02.
A Hollywood actor comes to Wichita and
A Kansas farmer purchases an ATV in
buys a LearJet. She removes the LearJet
Nebraska and has the dealer deliver it to
within 10 days, registering it in California.
him in Kansas. The farmer will use the ATV
No Kansas sales tax is due.
to work cattle. Kansas Compensating Use
Tax is due on the total purchase price of the vehicle,
A third exception is the isolated or occasional sale
including the delivery charge. If purchased within the
exemption. The sale of an aircraft between individuals
state of Kansas, Kansas retailers’ sales tax is due.
or entities may be exempt from sales tax if the
requirements of an isolated or occasional sale are met.
Like the vehicle itself, accessories for an ATV are
The definition of an isolated or occasional sale is that
also taxable because they generally do not directly
the SELLER cannot have more than two sales of that
contribute to a production process.
type in a 12 month period and the SELLER cannot have
purchased the aircraft with the intent to resell it. If these
WORKSITE UTILITY VEHICLES
two requirements are met, the isolated or occasional
sale of an aircraft is exempt from sales tax.
The sale of a work-site utility vehicle that is equipped
NOTE: This isolated/occasional sales tax exemption is not available
with a bed or cargo box for hauling materials may be
for “motor vehicles” or “trailers.” K.S.A. 79-3603(o).
purchased exempt from sales tax under the farm
machinery and equipment sales tax exemption if used
Mr. Carter, a Kansas resident, owns a
only in farming, ranching or aquaculture production.
plane that he uses for recreational
purposes. He decides to sell the plane to
Work-site utility vehicle means any motor vehicle
a fellow pilot. The sale is not subject to
which is not less than 48 inches in width, has an
sales tax, as Mr. Carter did not have more than one
overall length, including the bumper, of not more
sale within a twelve-month period, and he did not acquire
than 135 inches, has an unladen weight, including
the plane for the purpose of reselling it.
fuel and fluids, of more than 800 pounds and is
equipped with four or more low pressure tires,
Entities that are involved in the aircraft rental business
a steering wheel and bench or bucket-type
should follow the advice contained in NOTICE 92-04.
seating allowing at least two people to sit
This Notice addresses the sales and use tax issues
side-by-side, and may be equipped with a bed or
surrounding flight instruction, crop dusting, interstate
cargo box for hauling materials. (Emphasis added).
and/or foreign commerce, and is available from the
Policy Information Library on our web site.
AIRCRAFT
TRAILERS
As a general rule, the retail sale (or rental) of an
aircraft in the state of Kansas is subject to Kansas
As noted earlier in this publication, the sale of a trailer
Retailers’ Sales Tax. There are three general exceptions
is generally subject to sales tax.
to this rule:
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