Private Letter Ruling

Ruling Number:P-1998-110
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Exemptions for non-profit organizations.
Approval Date:08/31/1998

Office of Policy & Research

August 31, 1998


I have been asked to respond to your letter of August 19, 1998. In it, you ask for a private letter ruling that recognizes the XXXX (“the Center”) is exempt from payment of Kansas sales tax. You provided a mission statement for the Center and correspondence from the IRS with your letter. The IRS letter recognizes that the Center is exempt for income tax purposes under IRS Sec. 501(c)(3).

Unlike many states, Kansas does not extend a general sales tax exemption to not-for-profit organizations. Accordingly, to be exempt, the Center must fall within one of the conceptual exemptions in K.S.A. 79-3606 or be one of the organizations listed therein as exempt.

I have reviewed K.S.A. 79-3606 and can find nothing that exempts the Center. I have enclosed a copy of K.S.A. 79-3606 for you to review. Please let me know if there is an exemption provision that you feel applies to the Center.

In addition to these exemptions, the Kansas legislature recently defined the term “educational institution” for purposes of K.S.A. 79-3606(b) and K.S.A. 79-3606(c). This definition provides:

This definition shows that the term “educational institutions” includes accredited colleges and universities, certain other schools above the twelfth grade, and certain corporations and foundations that serve as adjuncts to colleges and universities. The Center does not fit into any of these categories. Accordingly, I am denying your ruling request. The Center must pay Kansas sales tax on all of its purchases in Kansas.

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. Please call me if you have any additional questions. Enclosure

Date Composed: 09/02/1998 Date Modified: 10/10/2001