Questions and Answers
Kansas Retailers' Sales Tax
PACKAGING #86 (8/91)
STATUS: PACKAGING MATERIAL: IN GENERAL, EXEMPT
exempts from sales tax, "all sales of tangible personal property which become an ingredient or component part of tangible personal property of services produced, manufactured or compounded for ultimate sale at retail within or without the state of Kansas; and any such producer, manufacturer or compounder may obtain from the director of taxation and furnish to the supplier an exemption certificate number for tangible personal property for use as an ingredient or component part of the property or services produced, manufactured or compounded."
states in part: "Each container, wrapper or other shipping or handling material actually accompanying the product sold is not subject to sales tax."
, "Each retailer purchasing a container or other shipping or handling material for consumption which is not for resale as described in K. A. R. 92-19-54(d) above is subject to sales tax. Each purchase by a retailer of a container or other shipping or handling material in which title remains with the retailer when the tangible personal property contained therein is sold by the retailer, or where the container or other shipping or handling materials are to be returned to the retailer by the consumer of the tangible personal property, is subject to sales tax. "
Please be advised that tangible personal property that is important to the production process but does not become an integral and material or physical part of the tangible personal property for sale at retail is not exempt from sales tax.
K.S.A. 79-3602(l)(1). Definitions.
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