Form Pub. Ks-1526 - Kansas Business Taxes For Motor Vehicle Transactions (Page 24 of 44) in pdf

Note that the examples shown in this section

EXAMPLES AND STEPS FOR FILING RETURNS

are for illustration purposes only and may not

contain current sales tax rates. You can, however,

This section contains examples and steps for

use these examples to assist you in filing your return

completing Kansas Retailers’ Sales Tax returns

electronically. See page 23 or go to our web site at

electronically. Two different return types are illustrated:

to determine the electronic filing option that

ST-16 – used by single jurisdiction filers whose filing

is best for you.

status is not pre-paid monthly (annual tax over $32,000);

and ST-36 – used by dealers reporting for more than

NOTE: Examples and steps for filing a Kansas Compensating Use

one location and/or jurisdiction, and/or whose filing

Tax Return (CT-10U) electronically can be found in Pub. KS-1510,

available on our web site.

status is pre-paid monthly.

David runs a small used car lot in Topeka with approximately $200,000 of gross sales per year. David is

registered with KDOR and because his annual sales tax collection are over $1,600, he is required to remit

and report Kansas retailers’ sales tax on a monthly basis. During the month of August David sold four

used cars to customers for a total $33,500 (not including the tax). David also sold one car to another

dealer for $6,000, and he took one vehicle out of inventory and gave it as a gift to his niece. David had purchased the

gift car for $2,400. Finally, he took one vehicle out of inventory to tag for his personal use. This vehicle cost David

$10,000. The sales tax calculations and the August return follows.

Figure the total receipts for the month, exclusive of

period, August, and tax year, then click the radio

tax: $33,500 + $6,000 + $2,400 = $41,900

button for the return type. In this example, select

Original. Click Continue to proceed to Part II.

Go to to begin the filing process. Click

Enter the nontaxable and exempt sales deductions

Use WebTax Now. If you are a first time user click

by category in Part II of the return – $6,000 in line A

and $2,400 in line N. Click Calculate to get your

total deductions, then click Continue to proceed to

After signing into WebTax, click Business Accounts.

Then click Add Account to this Login and follow

Part I. NOTE: The system will carry over to Part I the

the instructions to add your tax account. After

information you entered in Part II.

account appears, click on Manage Account and

your account screen will appear. Click Save. NOTE:

Enter your gross receipts on line 1 – $41,900. Enter

Once you have added your account, it will be retained

the cost of the inventory used personally on line 2.

in the system for future filing periods.

Note that motor vehicle dealers are required to pay

sales tax to the County Treasurer at the time of

Click File a Return. An informational page will

registration. Thus, the amount on line 2 is $0.

appear with messages regarding important

updates and/or tips for using the system. Please

Select your payment option: ACH Debit, ACH Credit,

take the time to read this information before clicking

or Check w/Voucher. For definitions of the ACH

Continue at the bottom of the page.

Credit and ACH Debit payment options, see page

19. Click Continue for the verification screen. Verify

Review the information for the account you added.

all entries and click Submit Return.

From the drop-down menu options, select your filing

However, the customers who do not live in Topeka

LOCAL COMPENSATING USE TAX

and therefore will register their vehicles in another city

or county may owe a local compensating use tax

(payable to the county treasurer for that county). This

In the example above, David sold three used cars.

local use tax is due when the state and local tax rate

The sales price, customer’s residence and sales tax

where the vehicle is registered is higher than the sales

rate for each are as follows:

tax rate at the dealer’s location.

$ 6,890

Silver Lake

6.45%

The De Soto customer will pay Local Compensating

$ 11,610

Topeka

7.95%

Use Tax to the Johnson County Treasurer in the amount

$10,000

De Soto (JO CO)

8.15%

of $70. (8.15% - 7.45% = .7% X $10,000 = $70)

When David sold these cars, he was required to

The Silver Lake and Topeka customers will not owe

collect the sales tax rate in effect at his place of business

any Local Compensating Use Tax when they register

within the city limits of Topeka - 7.95% when this guide

their autos. Although the sales tax is lower in Silver

was published. David has no local compensating use

Lake than at David’s place of business, no rebate of

tax obligations.

tax is due the Silver Lake customer.

Form Pub. Ks-1526 - Kansas Business Taxes For Motor Vehicle Transactions Page 24

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