Private Letter Ruling

Ruling Number:P-2002-077
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Consumed in production; mylar used in the manufacture of fiberglass tanks.
Approval Date:09/23/2002

Office of Policy & Research

September 23, 2002


Dear Sirs:

The purpose of this letter is to respond to XXXXXXXXXXX letter dated September 12, 2002.

The letter states:

The applicable statutes are K.S.A. 79-3606(n), which provides for tax exemption for sales of tangible personal property which is consumed in the production, manufacture, processing, mining, drilling, refining or compounding of tangible personal property. . . for ultimate sale at retail within or without the State of Kansas. In addition, K.S.A. 79-3602(m) “Property which is consumed” means tangible personal property which is essential or necessary to and which is used in the actual process of and consumed, depleted or dissipated within one year in (1) the production, manufacture, processing, mining, drilling, refining or compounding of tangible personal property, (2) the providing of services, (3) the irrigation of crops, for sale in the regular course of business, or (4) the storage or processing of grain by a public grain warehouse or other grain storage facility, and which is not reusable for such purpose.

It is the opinion of the Kansas Department of Revenue that the item referred to as “mylar” used and consumed in manner described in this letter is consumed in production of tangible personal property for resale and is exempt from Kansas retailers’ sales tax and Kansas consumers compensating (use) tax.

When purchasing this item you should issue to the supplier exemption certificate ST-28C, enclosed.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked by operation of law without further department action if there is a change in the controlling statutes, administrative regulations, revenue rulings or case law that materially effects this determination.


Mark D. Ciardullo
Tax Specialist


Date Composed: 09/25/2002 Date Modified: 09/30/2002