Kansas Administrative Code

(Authorized by K.S.A. 74-2437, 79- 1512, 79-1517, 79-1519, K.S.A. 1973 Supp. 59- 1405, 79-1511; effective Jan. 1, 1966; amended Jan. 1, 1974; revoked, E-80-26, Dec. 12, 1979; revoked May 1, 1980.)

Charitable distributees. (a) Any property interest passing from the decedent to a charitable organization shall be exempt from Kan- sas inheritance tax, regardless of the manner in which the interest is held or passed. (b) If the tax due for an estate is determined under the prov…

Qualified terminable interest property election. (a) A qualified terminable in- terest property election shall be made on form IH 80, Kansas inheritance tax return for estates filing federal estate tax returns, or form IH 90, Kansas inheritance tax return for estates not filing f…

Tax to residue. When a will or oth- er written instrument specifically provides for the payment of inheritance tax from the residue of the decedent’s estate, the tax due on property which is not a part of the residue of the estate, shall be deducted from the residue before it is …

Additional tax; credit for state death taxes. If the Kansas inheritance tax, com- puted in accordance with K.S.A. 79-1537, and its amendments, is less than an amount equal to the 632 DEPARTMENT OF REVENUE 92-2-64 federal credit for state death taxes, the difference between the in…

Minimum tax; credit for state death taxes. If no Kansas inheritance tax is due upon the distributive shares of an estate under K.S.A. 79-1537, and its amendments, an amount equal to the federal credit for state death taxes shall be due as a minimum tax. (Authorized by K.S.A. 79-1…

Proration of credit for state death taxes; tax chargeable against distribu- tee’s interests. (a) When an estate is comprised ofpropertybothwithinandwithouttheKansasju- risdiction, the amount of the credit for state death taxes shall be prorated between the jurisdictions, based up…

Valuation of property included in the gross estate. (a) The property included in a decedent’s gross estate pursuant to K.S.A. 79- 1547 through 79-1557, and their amendments, shall be valued as follows: (1) Stocks and Bonds. The value of stocks and bonds shall be the fair market v…

Special valuation of certain farm and closely held business properties. (a) An election under K.S.A. 79-1545, and its amend- ments, shall be made on a timely filed form IH 80, Kansas inheritance tax return for estates fil- ing federal estate tax returns, and by attaching to it a …

Exclusion of certain farm and closely held business properties from gross estate. (a) An election under K.S.A. 79-1545b, and its amendments, shall be made on a timely filed form IH 80, Kansas inheritance tax return for estates filing federal estate tax returns, or form IH 90, Kan…

Transfers in contemplation of death. (a) Estates of decedents dying prior to January 1, 1983, shall include all property which the decedent transferred within one year prior to death, except property transferred pursuant to a bona fide sale for an adequate and full consider- atio…

(Authorized by K.S.A. 74-2437, 79- 1501a, 79-1501d, 79-1502, 79-1511, 79-1512, 79- 1517; effective Jan. 1, 1966; revoked, E-80-26, Dec. 12, 1979; revoked May 1, 1980.)

Transfers with retained life es- tate. The determination of what property is to be included in a decedent’s gross estate, as a transfer with a retained life estate, and its value, shall be made in accordance with the general principles set forth in Treasury Reg. Sec. 20.2036-1 (1…

Transfers taking effect at death. The determination of what property is to be in- cluded in a decedent’s gross estate, as a transfer taking effect at death, and its value, shall be made in accordance with Treasury Reg. Sec. 20.2037- 1 (1958), which is hereby adopted by reference.…

Revocable transfers. The deter- mination of what is to be included in a decedent’s gross estate as a revocable transfer, and its value, shall be made in accordance with Treasury Reg. Sec. 20.2038-1 (1962), which is hereby adopted by reference. (Authorized by K.S.A. 79-1583; imple…

Annuities or other payments receivable by reason of surviving decedent. The determination of what is to be included in a decedent’s gross estate as an annuity, and its val- ue, shall be made in accordance with the general principles set forth in Treasury Reg. Sec. 20.2039- 1 (197…

Joint tenancy. (a) For the estates of decedents dying after December 31, 1981, any interest in property held by the decedent and the decedent’s spouse as joint tenants with right of survivorship shall be included in the gross estate only to the extent of one-half of the value of …

Powers of appointment. The de- termination of what is to be included in a dece- dent’s gross estate as a power of appointment, and its value, shall be made in accordance with Trea- sury Reg. Sec. 20.2041-1 (1961), Treasury Reg. 635 Inheritance Taxes 92-2-80 Sec. 20.2041-2 (1958),…

Life insurance proceeds. (a) The determination of what life insurance proceeds are to be included in a decedent’s gross estate shall be made in accordance with Treasury Reg. Sec. 20.2042-1 (1974), which is hereby adopted by reference. (b) Credit life insurance shall be considered…

Transfers for insufficient con- sideration. The determination of what is to be included in a decedent’s estate as a transfer for insufficient consideration, and its value, shall be made in accordance with the general principles set forth in Treasury Reg. Sec. 20.2043-1 (1958), wh…

Proration of deductions. (a) When the assets of an estate are both within and without the jurisdiction of Kansas, the deduction for expenses and debts shall be prorated in the ratio that Kansas assets subject to debts bear to the entire estate subject to debts. For purposes of co…

Deduction of expenses and debts. (a) The determination of the deductibility of funeral expenses and administration expens- es against the estate under K.S.A. 79-1561 shall be made in accordance with Treasury Reg. Sec. 20.2053-1 (1972), Treasury Reg. Sec. 20.2053-2 (1958) and Trea…

(Authorized by K.S.A. 74-2437, 74- 2443, 79-1501; effective Jan. 1, 1966; amended Jan. 1, 1969; revoked May 1, 1978.)

Expense deductions not allow- able as deductions for income tax purposes. (a) Expenses which have been, or will be, de- ducted for inheritance tax purposes shall not be deducted for income tax purposes. To deduct an item for income tax purposes, there shall be at- tached to a tim…

Deductions for federal estate tax. The amount of federal estate tax which will be allowed as a deduction for inheritance tax pur- poses shall be limited to the extent that the tax is imposed upon assets deemed to be included in the decedent’s estate as of the date of death as def…

Filing of return; payment of tax; liens; interest; computations by director. (a) A complete return shall be filed within nine months after the date of the decedent’s death to avoid the accrual of interest. When the filing of the return is delayed beyond nine months after the deat…

Reporting adjustments of inter- nal revenue service. The representative of an estate shall notify the department of adjustments made by the internal revenue service pursuant to K.S.A. 79-1574, and its amendments, by sub- mitting true copies of the line adjustments and of the adju…

Overpayment of fees. A fee which is overpaid shall not be refunded unless a written request for the refund is made by the party mak- ing the original payment. (Authorized by K.S.A. 79-1583; implementing K.S.A. 79-1580; effective May 1, 1986.) TRANSPORTATION OF LIQUID FUEL 92-3-1 …

(Authorized by K.S.A. 74-2437, 79- 1501; effective Jan. 1, 1966; amended Jan. 1, 1969; amended May 1, 1978; revoked, E-80-26, Dec. 12, 1979; revoked May 1, 1980.)

Purposes. The Kansas compensat- ing (use) tax act, as amended, supplements the Kansas retailers’ sales tax act by imposing a like tax for the privilege of using, storing, or consum- ing within this state tangible personal property purchased at retail or for the privilege of utili…

(Authorized by K.S.A. 79-3702, K.S.A. 1973 Supp. 79-3707; effective, E-70-33, July 1, 1970; effective, E-71-8, Jan. 1, 1971; effec- tive Jan. 1, 1972; amended Jan. 1, 1974; revoked May 1, 1987.)

(Authorized by K.S.A. 79-3707; implementing K.S.A. 79-3702, 79-3704, K.S.A. 1986 Supp. 79-3703; effective, E-70-33, July 2, 1970; effective, E-71-8, Jan. 1, 1971; effective Jan. 1, 1972; amended May 1, 1988; revoked Aug. 23, 2002.)

Sales tax exemptions also apply to compensating tax. The compensating tax does notapplyinrespecttotheuse,storage,orconsump- tion of any article of tangible personal property or the furnishing of taxable services brought into or usedwithinthestateofKansasifsucharticleoftan- giblep…

Property formerly used in an- other state.Whenpropertypurchasedinanother state and used outside the state of Kansas is later brought into the state of Kansas for use, storage, or consumption, it will be presumed that compen- sating or use tax shall apply unless the purchaser conc…

Purchases other than at retail; property used in processing. The test of a retail purchase is the purpose for which the purchase is made. Purchases for final use, storage, or con- sumption are retail purchases as distinguished from purchases for resale. The status of the seller i…

Property already subjected to sales or use tax. The sale or use of property on which the state of Kansas or any other state of the United States has imposed sales or use tax equal to or greater than four percent (4%) is exempt from the tax. However, this exemption shall be denied…

Railroads—interstate com- merce. All tangible personal property purchased out of the state and brought into the state of Kan- sas for use, storage, or consumption by railroads is subject to the tax in the same manner as is tan- gible personal property brought into the state by ot…

Airlines—interstate commerce. Any airline engaged in the transportation by air- craft of persons or property in interstate common carrier transportation shall be deemed to be a “public utility” as used in section 79-3704(a) of the act. All tangible personal property purchased out…

Motorcarriers—interstatecom- merce. Motor carriers authorized by the interstate commerce commission as common carriers and engaged in the transportation of persons or proper- ty shall be deemed to be a public utility within the meaning of the term “public utility” as used in sec-…

Pipe lines—interstate com- merce. All pipe lines engaged in the transporta- tion of property shall be deemed to be a public utility within the meaning of the term “public util- ity” as used in section 79-3704(a) of the act. All tangible personal property purchased out of the stat…

(Authorized by K.S.A. 79-3703, 79- 3707; effective, E-70-33, July 1, 1970; effective, E-71-8, Jan. 1, 1971; effective Jan. 1, 1972; re- voked May 1, 1987.)

Radio broadcasting and televi- sion stations—interstate commerce. All tangi- ble personal property purchased out of the state and brought into the state of Kansas for use, stor- age, or consumption by radio broadcasting and television stations is subject to the tax in the same ma…

Telephone and telegraph com- panies—interstate commerce. All telephone and telegraph companies engaged in the trans- mission of messages shall be deemed to be a pub- lic utility within the meaning of the term “public utility” as used in section 79-3704(a) of the act. All tangible…

Transactions on which tax ap- plies. Each person storing, using, or otherwise consuming personal property in this state is lia- ble for the compensating tax regardless of wheth- er the property was purchased or leased within or without this state. Unless the storage, use, or cons…

Sales tax rules and regulations also apply to compensating tax. Each Kansas retailers’ sales tax rule and regulation relating to enforcement, collection, and administration, which are compatible to compensating tax rules and regulations, shall also apply to the enforce- ment, col…

Purchase price, consideration, trade-ins. The actual cost of transportation from the place where the article was purchased to the 740 DEPARTMENT OF REVENUE 92-20-5 person using the same in this state is taxable as a part of the consideration and purchase price. Transportation cos…

Payment of tax. Each registered retailer as defined by this act shall collect from the consumer or user at the time of sale of tangible personal property or at the time of the furnishing of taxable services the full amount of the tax im- posed by this act. The tax shall be a debt…

Filing of returns. Each registered retailer shall, on or before the 25th day of each month, file a return with the director on forms furnished by the director. The return shall cover the sale of tangible personal property or the pro- viding of taxable services subject to the Kans…

Registration of out-of-state re- tailers; collection of tax by retailers. (a) A re- tailer shall be deemed to be doing business in this state when engaged in business within this state under, but not limited to, any of the following methods of transacting business: (1) Maintainin…

Delivery. Delivery is held to have taken place in this state (1) when physical pos- session of tangible personal property is actually transferred to the buyer within this state or (2) when the tangible personal property is placed in the mails at a point outside this state directe…