Private Letter Ruling

Ruling Number:P-2005-004
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Manufacturer's Exemption.
Approval Date:03/18/2005

Office of Policy & Research

March 18, 2005

Dear Mr. xxxxxxx:

Xxxxxxxxxxxxxx and the department have had discussions during the past 2 months concerning the tax exempt status of xxxxxxxxxxxxx. On February 23, 2005, Bob Clelland determined xxxxxxxxxxxxxxx was a manufacturer and mailed to you a Manufacturer’s Exemption letter. This letter enables your organization to purchase materials used in the manufacturing process exempt from sales tax.

In the letter mailed to the department on February 23, 2005 you included information that showed xxxxxxxxxxxxxx had been exempt from sales tax as an nonprofit educational institution. You are requesting a similar ruling at this time. Please be advised that xxxxxxxxxxxxxxxx is not exempt as an educational institution since July 1, 1998 because of a legislative enactment that defined "educational institution." See 1998 Kan. Sess. Laws Chap. 130,Sec. 29. This definition is now found at K.S.A 79-3602(l):

The 1998 enactment effectively revoked xxxxxxxxxxxxxx status as a non-profit educational institution. There is nothing in the new definition that exempts would exempt xxxxxxxxxxxxx as an educational institution. Accordingly, all purchases consumed by xxxxxxxxxxxxxxxxx are taxable.

Please call me if you need to 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 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.


Steven Brunkan
Office of Policy and Research

Date Composed: 03/25/2005 Date Modified: 03/25/2005