Questions and Answers
Postage and sales of postage stamps to stamp collectors
Kansas Retailers' Sales Tax
Postage/Freight and stamp sales
POSTAGE AND SALES OF POSTAGE STAMPS TO STAMP COLLECTORS
STATUS: (1) US postage stamps purchased from the US Postal Service are not subject to sales tax. However, when a retailer recoups its cost of US postage stamps from a customer, that amount is part of the "sales or selling price" and is subject to sales tax.
(K.S.A. 2004 Supp. 79-3602(ll)).
The amount paid by the customer to the retailer is taxable whether there is a separate line-item customer charge for postage stamps, or the cost of the stamps is included as part of charge for delivery, freight, shipping, or other similar charge.
(2) Retail sales of the following tangible personal property are subject to the sales and use tax:
(a) Canceled United States and foreign postage stamps.
(b) Uncanceled United States postage stamps when sold or traded as collectors' items above their face value.
(c) Uncanceled foreign postage stamps.
(d) Postage charges which are billed by the retailer to the customer in connection with the sale and delivery of tangible personal property if the sale of the property is subject to the tax.
(See (1) above).
(3) Retail sales of the following tangible personal property are not subject to the sales and use tax:
(a) The portion of the selling price attributable to postage in the sale of plain, prestamped envelopes if the nontaxable postage is separately itemized to the customer. For purposes here, "plain" means that the envelope does not contain a deliver-to address.
(b) Uncanceled United States postage stamps intended for use as postage even if sold for an amount above face value.
(4) Postage charges and other delivery charges for the delivery of direct mail are not considered part of the selling price and are not subject to sales tax if the charges are separately stated on the invoice or other billing document given to the purchaser.
"Sales or selling price."
K.S.A. 2006 Supp. 79-3602(ll) and (i). Definitions
K.A.R. 92-19-56. Coins, bullion, stamps, antiques, collectibles, commemoratives, and similar items.
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