Opinion Letter

Letter Number:O-2000-038
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Monthly fees for subscribing to a satellite radio service.
Approval Date:11/29/2000

Office of Policy & Research

November 29, 2000


Thank you for your recent e-mail inquiry. You ask if monthly fees for subscribing to a satellite radio service are subject to Kansas sales tax. Your grocery stores receive satellite transmissions of music and advertisements that are played over store intercoms.

Kansas sales tax is imposed on “the gross receipts from cable, community antennae and other subscriber radio and television services.” K.S.A. 79-3603(k). Notice 98-04 states:
The statute and notice make clear that your payments are for a subscriber radio service and, accordingly, are subject to Kansas sales tax. As the notice states, subscriber radio service providers are required to collect state and local sales tax on the total amount that they receive from their service.

I have enclosed a copy of Notice 98-04 for your review. I believe that my letter and the notice answer all of your questions. If not, please call me at (785) 296-3081.

Date Composed: 12/12/2000 Date Modified: 10/10/2001