Private Letter Ruling

Ruling Number:P-2001-122
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Medical chart information; electronic database solutions.
Approval Date:10/26/2001

Office of Policy & Research

October 26, 2001



The purpose of this letter is to respond to your letter dated September 28, 2001.

In your letter you stated:

In deciding whether a particular transaction is subject to sales tax, a two step analysis is generally necessary. The first step is to determine whether the sales tax act generally imposes tax on the type of transaction in question. The second step is to determine whether the act provides an exemption for the particular type of transaction.

As a rule, sales tax is imposed on all transactions involving the transfer of tangible personal property. With services, however, tax is imposed only on those transactions that are specifically enumerated in the sales tax act. Exemptions for transactions involving either tangible personal property or services are allowed as specifically enumerated.

Your letter continues with a series of questions:

1. Are the service transactions described above taxable?

Answer: It is the opinion of the Department that no imposition exists in the law to impose Kansas sales tax on the services as described in this letter.

Your Company is required to pay Kansas sales and compensating taxes on all purchases of tangible personal property and taxable services used or consumed by their business.

2. If the service transaction is taxable,

Is the actual postage taxable?

Answer: Not applicable.

Is the handling taxable?

Answer: Not applicable.

3. If the service transaction is not taxable, are the paper costs to generate revenue taxable?

Answer: Yes, your company is responsible to pay sales or compensating (use) taxes on all tangible personal property purchased in state or delivered into Kansas from out of state.

4. 4. If the requesting party is located outside your state, is the transaction taxable?

Answer: Not applicable.

Please provide a letter and a copy of the rules and regulations as they relate to the photocopying of medical records and our other lines of product.

Answer: I am unaware of any rules or regulations regarding the taxation of photocopying of medical records.

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.


Mark D. Ciardullo
Tax Specialist


Date Composed: 10/30/2001 Date Modified: 10/30/2001