Private Letter Ruling

Ruling Number:P-2011-010
Tax Type:Kansas Retailers' Sales Tax; Kansas Compensating Tax
Brief Description:Purchases of software licenses and support services.
Approval Date:12/27/2011

Office of Policy & Research

December 27, 2011



This letter is in response to your letter whereby you inquire whether the purchases by XXXX XXXCompany of software licenses and support services from XXXX are subject to Kansas Retailers’ Sales Tax or Kansas Consumers’ Compensating Use Tax.

Kansas does not tax a license to use software when the software is not delivered to the Kansas user. The transaction as stated in your letter is not subject to Kansas sales or compensating tax. The reason no tax is due is the fact that the software was not delivered to you in Kansas. The software resides on your software provider server.

In your letter, you state:

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.


Mark D. Ciardullo
Tax Specialist

Date Composed: 01/10/2012 Date Modified: 01/10/2012