Notice Number:Gas, Water, Electrical and Heating Utility
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Applicability of Sales Tax on Late Charges
Effective Date:08/02/1971

August 2, 1971

TO: All Kansas Gas, Water, Electrical
and Heating Public Utilities:

This announcement is a supplement to clarify the information previously mailed to you relative to the tax treatment of payments made by consumers and uses to your company.

Effective July 1, 1971 where an additional amount is paid for failure to make payment within a prescribed period for the taxable sale of gas, water, electricity, or heat, sales tax applies to such additional amount.

In other words, the tax is due on all payments whether in the form of a minimum charge, a flat rate or otherwise. Accordingly, where a discount is deductible from the gross utility charge if payment therefore is made within a prescribed period or where an additional amount is added for failure to make payment within a prescribed period, the tax attaches to the amount actually paid under either condition.

Sincerely yours,

Director of Revenue

Date Composed: 10/07/1997 Date Modified: 10/10/2001