Private Letter Ruling
Kansas Retailers' Sales Tax
Office of Policy & Research
May 8, 1998,
Dear Mr. XXXXXXXXX:
The purpose of this letter is to respond to your letter dated April 16, 1998.
You generally stated in your letter:
XXXXXXXXXXXXXXXXXXXXXX is planning to form as a XXXXXXXXXXXXXXXX LLC. Your products are internet services - specifically resale of disk space and access on a server located in XXXXXXX, and design of World Wide Web pages. The product most closely resembles that of an advertising agency. It involves writing in a language understood by computers, the customer does not receive a diskette, CD-ROM or executable program. The sites are accessible only by using a computer connected to the internet. You believe that your services are exempt from sales tax under Kansas Law and requesting a written ruling to verify.
It is the opinion of the Kansas Department of Revenue that the gross receipts from the sale of disk space (storage of information) via a server would not be subject to Kansas retailers’ sales tax.
Mark D. Ciardullo
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