Private Letter Ruling

Ruling Number:P-2001-129
Tax Type:Kansas Retailers' Sales Tax
Brief Description:School PTO's.
Approval Date:11/29/2001

Office of Policy & Research

November 29, 2001


Re: Kansas Sales Tax


Your correspondence of November 26, 2001 has been referred to me for response. Thank you for your inquiry.

By your letter you request our advice with regard to the following scenario and questions presented on behalf of your school’s PTO:
In response to your request, please be advised the Kansas sales tax is imposed by K.S.A. 79-3603. The statute imposes sales tax on all sales of tangible personal property, and on certain enumerated services. The statute provides, in pertinent part, for the imposition of tax on:
Exemptions from sales tax are found in K.S.A. 79-3606. Subsection (yy) of the statute provides an exemption for:
The gist of the statute is that sales of tangible personal property made by a PTO are exempt from sales tax, while sales of services made by a PTO are subject to sales tax. For example, tickets exchanged for food or drink provided by a PTO, proceeds from a silent auction held by or on behalf of a PTO, or the sale of school supplies, t-shirts, yearbooks, etc. by a PTO are exempt from sales tax as a sale of tangible personal property. On the other hand, sales of tickets for the right to play carnival games, participate in a cakewalk, or use a “moonwalk” are considered to be services, and are therefore subject to Kansas sales tax.

For your reference, please find enclosed a copy of the Kansas Sales And Compensating Use Tax booklet published in March of 2000.

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

I trust this information is of assistance. If I can be of further service, please feel free to contact me.


Jim Weisgerber
Tax Specialist


Enclosure: Kansas Sales And Compensating Use Tax

Date Composed: 12/13/2001 Date Modified: 12/13/2001