Private Letter Ruling

Ruling Number:P-2006-007
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Charges for telephone services for a church parsonage
Approval Date:05/16/2006

Office of Policy & Research

May 16, 2006


Thank you for your recent e-mail. You ask whether or not Kansas sales tax applies to charges for telephone services for a church parsonage. The taxability of utility services provided to a parsonage is explained in Notice 99-14, Sales Tax Exemptions for Religious Organizations. It provides:

While telephone services are not specifically mentioned in Notice 99-14, charges for telephone services for a parsonage are treated the same way as charges for utility services. This means that telephone charges are taxable. Telephone services are purchased for both church use and for personal use by ministers, priests, nuns, and other religious personnel. The exemption is limited to purchases that are “exclusively for religious purposes.” Telephone charges are taxable even when paid for with the church funds.

Accordingly, charges for telephone services for a parsonage, rectory, convent, minister's house, or similar location are taxable. This same determination applies to cell-phones charges for cell-phones that are used by ministers, priests, and other religious personnel, even when the charges are paid for with church funds.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked in the future by the operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially effects this private letter ruling.

Date Composed: 05/19/2006 Date Modified: 05/19/2006