Form Pub. Ks-1526 - Kansas Business Taxes For Motor Vehicle Transactions Page 18
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44In-State Sales By Dealers
trailer is not tagged and registered, the tax is to be paid
to KDOR. See NOTICE 96-05 on our web site.
Kansas trailer dealers are required to collect Kansas
Retailers’ Sales Tax (state plus any applicable local sales
BOATS/WATERCRAFT
taxes) when the purchaser takes possession of a trailer
in Kansas. The dealer will provide the purchaser with
The retail sale, rental or lease of boats and watercraft
the same sales tax receipt form (ST-8) as a motor vehicle
(i.e., jet skis, etc.) is subject to Kansas sales and
dealer. This rule applies even when the purchaser
compensating use tax. The sale of a boat or watercraft
is a bona fide resident of another state and the
by a Kansas dealer to a nonresident of Kansas is subject
trailer will be removed from Kansas and registered
to Kansas sales tax when the buyer takes possession
in another state. (Only motor vehicles, semi-trailers,
of the boat in Kansas (see examples in previous
pole trailers and aircraft can be purchased by
column). There is no 10-day drive-out permit for boats.
nonresidents exempt from Kansas sales tax.)
The purchase of a boat from a dealer located outside
A resident of Missouri buys a motorcycle
of Kansas is subject to both state and local Kansas
trailer from a Kansas dealer. Even though
Compensating Use Tax – K.S.A. 12-198. The tax situs
the trailer will be removed from Kansas
is the owner’s residence. The purchase of a boat from
within 10 days of the purchase date and
an individual located outside of Kansas may qualify for
be registered and tagged in Missouri, Kansas Retailers’
the isolated or occasional sales tax exemption. However,
Sales Tax must be collected on the trailer by the Kansas
with the purchase of a boat and trailer sales tax is due
dealer. (NOTE: Had the Missouri resident also
the County Treasurer on the selling price or fair market
purchased a motorcycle from the same dealer, there
value of the trailer, unless the trailer has a gross weight
would be no Kansas Sales Tax on the motorcycle
of less than 2,000 (see details above).
because a it qualifies for a 10-day drive-out permit.)
No Kansas sales tax is due on boat slip fees or
A Missouri resident buys a motorcycle
rentals, or boat and/or trailer storage.
trailer from a Kansas dealer. The Kansas
dealer is obligated, as part of the sale, to
deliver the trailer to a Missouri location.
NATIVE AMERICAN RESERVATION SALES
No Kansas sales tax is due; see K.A.R. 92-19-29.
(NOTE: By making the delivery to Missouri in their own
The sale of a vehicle to a member of a Native
vehicle, the Kansas dealer may have established nexus
American tribe which is negotiated, consummated and
or a physical presence in Missouri, and be obligated to
delivered within the boundaries of the federally
register with Missouri to collect Missouri use tax on its
recognized Native American Reservation in the state of
trailer sales to Missouri customers.)
Kansas occupied by his/her tribe is exempt from Kansas
Retailers’ Sales and Compensating Use Tax. To be
Out-of-State Trailer Purchases
exempt, the sale negotiations, signing of the purchase
contract, exchange of consideration, and delivery all
Anyone who purchases a new or used trailer from
must be made within the boundaries of a federally
an out-of-state dealer must pay the state and local
recognized Native American Reservation, AND the
Kansas Compensating Use Tax at the County
Native American buyer must be a member of the tribe
Treasurer’s office. Like Kansas Sales Tax, Kansas
that occupies the federally recognized Native American
Compensating Use Tax is imposed on the dealer’s gross
Reservation on which the sale took place.
selling price, less any trade-in or other allowable
discount (such as a dealer’s discount). Gross selling
Before granting a tax exemption on a vehicle sale
price includes every item of the sale: the trailer,
County Treasurers should obtain a notarized statement
accessories, manufacturer ’s rebate, extended
from the vehicle dealer stating that all negotiations,
warranties, optional warranties, freight and delivery
signing of contracts, exchange of consideration and
charges. Credit against the compensating use tax is
delivery of the vehicle were made within the geographical
given for any state and local sales tax paid in the other
boundaries of a federally recognized Native American
state. K.A.R. 92-19-30(l)(2).
Reservation, to a Native American who is a member of
the tribe that occupies the Reservation upon which the
Isolated or Occasional Trailer Sales
sale of the vehicle took place.
The isolated or occasional sale of any trailer
Vehicles sold or leased to Native Americans are
(including those with a gross weight of 2,000 pounds or
subject to sales tax when the sale is made in Kansas
less) is subject to Kansas sales or use tax, K.S.A.
unless the dealer is located on the reservation. Kansas
79-3603(o). However, trailers with a gross weight of
motor vehicle dealers are prohibited from conducting
2,000 pounds or less are not required to be tagged or
sales away from their established place of business.
registered, K.S.A. 8-143. Gross weight means the empty
Kansas dealers, therefore, cannot lawfully deliver
weight of the trailer plus the maximum cargo weight of
vehicles to the reservation without specific written
the trailer. If the owner elects to tag and register the
permission from the Director of Motor Vehicles.
trailer, the tax is paid to the County Treasurer. If the
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