Private Letter Ruling

Ruling Number:P-2003-058
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Exemption for religious organizations.
Approval Date:12/11/2003

Office of Policy & Research

December 11, 2003


Re: Kansas Sales Tax


Your correspondence of July 1, 2003 has been referred to me for response. Thank you for your inquiry, and please accept my apologies for the inordinately long delay in responding.

Your letter notes the XXXXX XXXX XXXX XXXX XXXX is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code. The purpose of the fund is to:
Your letter goes on to note that during the normal course of business, the XXXX pays sales tax on various services, supplies and equipment.

Following your letter of July 1st you provided additional information, both by phone and by letter of September 17th, in order to further explain your position. This information was very helpful and much appreciated.

The question you present is whether the XXXX qualifies for exemption from Kansas sales tax pursuant to K.S.A. 79-3606.

The exemption for religious organizations is found in K.S.A. 79-3603(aaa). The statute provides, in pertinent part, for the exemption from sales tax of:
The term “religious organization” is not defined in the statute. Department of Revenue has, however, defined the term in Notice 99-14, a copy of which is enclosed for your convenience. In Part I the Notice provides that:
The Notice goes on to establish qualifications for “an organization that are composed of religious organizations”, and “certain auxiliary organizations”.

The phrase “used exclusively for religious purposes” is also defined in the Notice. Part II provides that tangible personal property and services are used exclusively for religious purposes if they are:

Used exclusively in, or to facilitate, religious worship services by a congregation or church membership while meeting together at a single location;
Used exclusively in, or to facilitate, religious ceremonies;
Used exclusively in, or to facilitate, carrying out the religious work of the organization;
Used to construct, furnish, equip, remodel, or maintain a facility used exclusively for religious objectives . . . .
Used exclusively to administer, manage, or operate religious facilities or to administer religious activities.

Article IV of the Articles of Incorporation you submitted states, in part, that the objects and purposes of the corporation are:
As you know, your request was reviewed at several levels within the Department of Revenue. After carefully considering the information you presented, we have determined the XXXX XXXX XXXX XXXX XXXX is not a religious organization as contemplated by K.S.A. 79-3606(aaa), and that its purchases will not be used exclusively for a religious purpose. Therefore, the XXXX XXXX XXXX XXXX XXXX will not qualify for exemption from sales tax under K.S.A. 79-3606(aaa).

This private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to make an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this private letter ruling.

I trust this information is of assistance. If I can be of further service, please feel free to contact me.


Jim Weisgerber
Tax Specialist


Enclosure: Notice 99-14

Date Composed: 12/12/2003 Date Modified: 12/12/2003