Opinion Letter

Letter Number:O-1999-13
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Internet related telecommunications questions.
Approval Date:06/04/1999

Office of Policy and Research

June 4, 1999



I have been asked to respond to your letter of March 18, 1999. In it, you ask about the sales and use tax responsibilities of your client in regard to telecommunications and the Internet.

In your letter you described the following scenario:

Kansas law imposes Kansas retailers’ sales tax on “the gross receipts from intrastate telephone or telegraph services. . . interstate telephone service. . .” K.S.A. 79-3603(b). Kansas also imposes sales tax on “the gross receipts received for telephone answering services, including mobile phone services,
beeper services and other similar services. . .” K.S.A. 79-3603(t).

It is the opinion of the Kansas Department of Revenue that the services described in your letter do not constitute telephone or telephone answering services as contemplated by Kansas law and are not subject to Kansas sales tax. Your client is providing nontaxable service. Your client is the consumer of all tangible personal property and services consumed in Kansas and must pay or accrue sales or compensating tax on all taxable purchases of tangible personal property or taxable services.


Mark D. Ciardullo
Tax Specialist


Date Composed: 06/22/1999 Date Modified: 10/10/2001