Agency 92, Article 19 — KANSAS

Propane gas, LP-gas, coal, wood, and other fuel sources; sales to res- idential premises. (a) Sales of propane gas, LP-gas, coal and wood for the production of heat or lighting for the noncommercial use of an oc- cupant of residential premises are exempt from sales tax. Sales of …

(Authorized by K.S.A. 79-3618, K.S.A. 1979 Supp. 79-3606; effective, E-80-26, Dec. 12, 1979; effective May 1, 1980; revoked June 26, 1998.)

Credit sales, conditional sales, and other sales and service transactions that allow deferred payment. (a) For purposes of this regulation, K.A.R. 92-19-3b, K.A.R. 92-19-3c, and K.A.R. 92-19-55b, the following definitions shall apply: (1) “Conditional sale” means a sales transac-…

Allowances for bad debts. (a) General. (1) For purposes of this regulation, “bad debt” shall mean any debt owed to or account receivable held by a retailer that can be claimed as a “whol- ly or partially worthless debt” deduction under 26 U.S.C. Section 166 that arose from the sa…

Repossessed goods. (a) Each re- tailer that repossesses goods that were the basis of a bad debt allowance under K.A.R. 92-19-3b, and each financial institution that repossesses goods, shall account for the repossessed goods in accor- dance with this regulation. (b) The recovery o…

(Authorized by K.S.A. 79-3609, 79- 3618; effective, E-70-33, July 1, 1970; effective, E-71-8, Jan. 1, 1971; effective Jan. 1, 1972; re- voked May 1, 1987.)

(Authorized by K.S.A. 79-3618, implementing K.S.A. 1986 Supp. 79-3606 as amended by L. 1987, Ch. 292, Sec. 32, as further amended by L. 1987, Ch. 64, Sec. 1; effective, E-80-26, Dec. 12, 1979; effective May 1, 1980; amended May 1, 1988; revoked April 1, 2011.)

(Authorized by K.S.A. 79-3618; implementing K.S.A. 79-3603 as amended by L. 1986, Ch. 386, Sec. 1; effective, E-81-1, Jan. 10, 1980; effective May 1, 1980; amended May 1, 1987; revoked May 1, 1988.) 712 DEPARTMENT OF REVENUE 92-19-42

(Authorized by K.S.A. 79-3618; implementing K.S.A. 1980 Supp. 79-3602, 79- 3603, 79-3606; effective May 1, 1981; revoked April 1, 2011.)

Tax due upon registration of vehicle by dealer; exception; credit upon subsequent transfer.(a)Theregistrationofave- hicle by a licensed vehicle dealer pursuant to the provisions of article 1 of chapter 8 of Kansas Stat- utes Annotated shall constitute the taking of tangi- ble per…

Sampling methods. At the dis- cretion of the director of taxation, sampling prin- ciples or methods may be used in lieu of a 100% examination of records in conducting a sales or use tax audit. (Authorized by K.S.A. 79-3618, 79- 3707; implementing K.S.A. 79-3609, 79-3707; ef- fect…

Audit facilities. Each taxpayer shall furnish reasonably sufficient work space, lighting, and working conditions for department of revenue agents for the conducting of sales or use tax audits. (Authorized by K.S.A. 79-3618, 79- 3707; implementing K.S.A. 79-3609, 79-3707; ef- fect…

Selling price. (a) Selling price is the total consideration given in each transaction, whether in the form of money, rights, property, promise or anything of value, or by exchange or barter. The key element in imposing sales tax on a transaction is not based on what a transaction…

(Authorized by K.S.A. 79-3618; implementing K.S.A. 1986 Supp. 79-3602; effec- tive May 1, 1988; revoked March 19, 2021.)

(AuthorizedbyK.S.A.79-3618;im- plementing K.S.A. 1986 Supp. 79-3603 as amend- ed by L. 1987, Ch. 182, Sec. 108, K.S.A. 79-3609, K.S.A. 1986 Supp. 79-3607, K.S.A. 1986 Supp. 79- 3610asamendedbyL.1987,Ch.391,Sec.1;effec- tive May 1, 1988; revoked June 26, 1998.) 713 Kansas Retailer…

(Authorized by K.S.A. 79-3618; implementing K.S.A. 79-3609, K.S.A. 79-3650; effective June 26, 1998; revoked May 27, 2005.)

Goods returned when a sale is rescinded. (a)(1) When a retailer and consum- er rescind a taxable sale of goods that the retailer reported on an earlier return, the retailer shall be entitled to deduct the original selling price of the returned goods from its current report of gro…

Refund applications; refund claims; required forms. (a) Definition. (1) “Refund claim” shall mean an application for the refund of sales or compensating use tax, penalty, or interest submitted in writing on a form prescribed by the department that has been com- pleted and is acco…

Review of refund applica- tions; processing of refund claims. (a) Statute of limitations. (1) Whenever a retailer or consumer that has filed a sales or compensating use tax return seeks a refund for the erroneous payment of the tax, penalty, or interest, the refund claim shall be…

(Authorized by K.S.A. 79-3618, 79-3707; implementing K.S.A. 79-3609, K.S.A. 79- 3706;effectiveMay1,1987;revokedJuly27,2001.)

Recordkeeping requirements. (a) Purpose. Each taxpayer shall maintain the books, records, and other information required to be maintained by the Kansas retailers’ sales tax act in accordance with this regulation. (b) Definitions. For purposes of this regulation, these terms shall…

(Authorized by K.S.A. 79-3618; im- plementing K.S.A. 1986 Supp. 79-3607, 79-3615; effective, E-70-33, July 1, 1970; effective, E-71-8, Jan. 1, 1971; effective Jan. 1, 1972; amended May 1, 1988; revoked Dec. 13, 2002.)

(Authorized by K.S.A. 79-3618; implementing K.S.A. 1986 Supp. 79-3602; effec- tive May 1, 1988; revoked Dec. 13, 2002.)

Gratuities, service charges and minimum charges. (a) Each cover charge or minimum charge entitling the customer to receive entertainment, recreation, amusement, or food, meals or drinks furnished by any place where food, meals or drinks are regularly sold to the public, whether l…

Agency relationships; direct purchases. (a) Unless specifically authorized by the sales tax act, an agency relationship between a purchaser and its principal shall not be recognized by the department of revenue for sales tax exemp- tion purposes. (b) To qualify as a direct purcha…

Consumed in production. (a) In order for purchases of tangible personal property to qualify for exemption under K.S.A. 1986 Supp. 79-3606(n) as amended by L. 1987, Ch. 292, Sec. 32, as further amended by L. 1987, Ch. 64, Sec. 1 and amendments, the following requirements must be m…

Ingredient or component part. (a) For purchases of tangible personal property to qualify for exemption under K.S.A. 1986 Supp. 79-3606(m) as amended by L. 1987, Ch. 292, Sec. 32, as further amended by L. 1987, Ch. 64, Sec. 1 and amendments, the following requirements must be met:…

(Authorized by K.S.A. 79-3618; implementing K.S.A. 1986 Supp. 79-3602, K.S.A. 1986 Supp. 79-3603 as amended by L. 1987, Ch. 182, Sec. 108, K.S.A. 1986 Supp. 79-3606 as amended by L. 1987, Ch. 292, Sec. 32, as further amended by L. 1987, Ch. 64, Sec. 1, effective May 1, 1988; revo…

(Authorized by K.S.A. 2001 Supp. 79-3618; implementing K.S.A. 2001 Supp. 79-3602, K.S.A. 2001 Supp. 79-3603 as amended by L. 2002, ch. 89, sec. 1 and by L. 2002, ch. 185, sec. 6, K.S.A. 79-3604, K.S.A. 2001 Supp. 79-3606; effective Aug. 23, 2002; revoked April 13, 2007.)

Operating leases. (a) Defini- tions. (1) “Financing lease” shall have the meaning specified in K.A.R. 92-19-3a. (2) “Goods” shall have the meaning as specified in K.A.R. 92-19-3a. For purposes of this regula- tion,“equipment”maybesubstitutedfortheword “goods” whenever equipment r…

(Authorized by K.S.A. 79-3618; implementing K.S.A. 1986 Supp. 79-3603 as amended by L. 1987, Ch. 182, Sec. 108; effective May 1, 1988; revoked Jan. 3, 2020.)

Sales tax on motor fuels, spe- cial fuels, liquefied petroleum, and other fu- els. (a) Each sale of motor fuel, special fuel, lique- fied petroleum, and any other similar fuel that is subject to a Kansas fuel excise tax shall be exempt from sales tax if a Kansas fuel excise tax h…

Revenue rulings. (a) A revenue ruling is a statement of the department of revenue issued to the general public, and is of general ap- plication. A revenue ruling interprets the statute and regulation to which the ruling relates and is ordinarily issued in response to newly enacte…

Private letter rulings. (a) A “pri- vate letter ruling” shall mean a statement of the secretary of revenue or the secretary’s authorized agent issued to an individual retailer and shall be of limited application. A private letter ruling inter- prets the statute or regulation to w…

Extension of time for filing a return. (a) Each request for an extension of time in which to file a return shall be submitted in writing and shall contain the taxpayer’s business name and account number. The request shall be received by the department on or before the due date of…

(Authorized by K.S.A. 79-3618; implementing K.S.A. 79-3612, 79-3609; effec- tive, E-70-33, July 1, 1970; effective, E-71-8, Jan. 1, 1971; effective Jan. 1, 1972; amended May 1, 1988; revoked Aug. 23, 2002.)

(Authorized by K.S.A. 79-3618; implementing K.S.A. 1986 Supp. 79-3603 as amended by L. 1987, Ch. 182, Sec. 108, K.S.A. 79-3604; effective May 1, 1988; revoked Aug. 23, 2002.)

Retailers’ responsibility to collect sales tax; presumption of taxability. (a) Each retailer shall collect the tax imposed by the act from the retailer’s customers. Each re- tailer who fails or refuses to collect tax that is lawfully due shall be liable for payment of the uncolle…

Warranties, service and main- tenance contracts. (a) Each warranty included in the selling price of tangible personal property which is not charged to the consumer separately from the tangible personal property is subject to sales tax. (b) Each charge made by a retailer separate …

Limitations. The tax imposed under the sales tax act shall be assessed within three years from the date the return is filed. How- ever, if any person obligated to file a return for taxes imposed under the sales tax act fails to file a return for any reason, the tax may be assesse…

(Authorized by 79-3618; imple- menting K.S.A. 79-3643; effective May 1, 1988; revoked July 27, 2001.)

Responsible individuals. (a) Under K.S.A. 79-3643, and amendments thereto, a person may be held liable for sales taxes not paid to the state of Kansas if that person is a responsi- ble individual, and has willfully failed to collect, account for, or pay over to the state the taxe…

Medical equipment and sup- plies. (a) “Medical supplies” means tangible per- sonal property specifically designed for and ex- clusively used in the cure, treatment or diagnosis of an injury, illness or other malady of the human body, and consumed in a single usage. Medical suppli…

Contractors, subcontractors and repairmen; purchases of material. (a) Sales of building material or other property to contractors, subcontractors or repairmen for use bytheminbuilding,constructing,erecting,equip- ping, furnishing, repairing, servicing, altering, maintaining, enla…

(Authorized by 79-3618; imple- menting K.S.A. 1986 Supp. 79-3606 as amended by L. 1987, Ch. 292, Sec. 32, as further amended by L. 1987, Ch. 64, Sec. 1; effective May 1, 1988; revoked June 26, 1998.)

Labor services. (a) Each con- tractor, subcontractor, and repairman shall be re- sponsible for collecting and remitting sales tax on taxable services performed for others, including taxable services performed for other contractors. A contractor, subcontractor, or repairman shall …

Purchase and lease of tools and equipment. (a) Each contractor, subcon- tractor and repairman shall be considered the fi- nal user or consumer of all tools, equipment and machinery purchased to perform construction services. Sales of tools, equipment and machinery to contractors,…

(Authorized by K.S.A. 79-3618; implementing K.S.A. 1986 Supp. 79-3603 as 730 DEPARTMENT OF REVENUE 92-19-66e amended by L. 1987, Ch. 182, Sec. 108; effective May 1, 1988; revoked June 26, 1998.)

Project exemptions. (a) “Proj- ect exemption” means a type of sales tax exemp- tion that allows a qualifying entity to pass its ex- empt status through a contractor to suppliers when the contractor purchases materials for use in improving the entity’s real property. K.S.A. 79-360…

(Authorized by K.S.A. 79-3618; implementing K.S.A. 1986 Supp. 79-3602; effec- tive May 1, 1988; revoked March 19, 2021.)