Private Letter Ruling

Ruling Number:P-2000-021
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Water delivery surcharges subject to Kansas sales tax.
Approval Date:05/08/2000

Office of Policy & Research

May 8, 2000

Dear Mr. XXXX:

I have been asked to answer your e-mail that we received last month. In it, you ask if a surcharge for water delivery is subject to Kansas sales tax. Please be advised that the surcharge is subject to Kansas sales or use tax. This is shown by K.S.A. 79-3602(g), which provides:

The fact that you call the delivery charge a surcharge does not affect the imposition of tax on the charge. Kansas Administrative Regulation 92-19-46 provides in relevant part:

For these reasons, the tax base, which is the amount that is subject to Kansas tax on your billing, should include the sum of the surcharge and the line item amount that you charge for water. This assumes that these are your only customer charges. If you have other charges, they would be governed by the quoted regulation. I hope that this adequately explains why you should charge tax on these fees. If you have any additional questions, please call me and we can discuss this matter further.

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 by operation of law without further department action if there is a change in the controlling statutes, administrative regulations, revenue rulings or case law that materially effects this determination. Attorney/Policy & Research

Date Composed: 06/07/2000 Date Modified: 10/11/2001