Notice Number:92-07
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Sales of Newspaper
Effective Date:05/01/1992

NOTICE #92-7

TO: All Kansas Newspaper, Newspaper Carriers, Delivery Agents & Wholesalers

FROM: Kansas Department of Revenue

RE: Kansas Retailers Sales Tax Collections

DATE: May 1, 1992

Effective May 1, 1992 the Director of Taxation will require all newspaper companies to collect, report and remit Kansas Retailers' Sales tax imposed upon the sale of all newspapers sold to and by all newspaper carriers. All persons carrying and delivering newspapers for newspaper companies will be denied a sales tax registration certificate.

The Director of Taxation has taken this action pursuant to K.S.A. 79-3604, which provides: "Whenever the director of taxation shall determine that in the retail sale of any tangible personal property or services because of the nature of the operation of the business including the turnover of independent contractors, the lack of a place of business in which to display a registration certificate or keep records, the lack of adequate records or because such retailers are minors or transients there is a likelihood that the state will lose tax funds due to the difficulty of policing such business operations, the director shall refuse to issue a registration certificate so such person and it shall be the duty of the vendor to such person to collect the full amount of the tax imposed by this act and to make a return and payment of the tax to the director of taxation in like manner as that provided for the making of returns and the payment of taxes by retailers under the provisions of this act."

The newspaper carriers are the newspaper company's delivery agents. Under K.S.A. 79-3604, newspaper carriers should not collect and remit the sales tax. The responsibility of collecting and remitting the sales tax to Kansas is upon the newspaper company.

In addition to the 4.25% state sales tax collected and remitted on the retail selling price of the newspaper, any applicable local sales taxes must be collected and remitted based upon the business location of the newspaper company.

Kansas retail stores are allowed to purchase newspapers, from the newspaper companies, exempt from the sales tax for the purpose of resale. Kansas retailer stores shall collect and remit the sales tax imposed upon the gross receipts from sales of any other items within the store. The local sales tax is based upon the business location of the retail store.

The gross receipts form the sales of newspapers sold through Kansas coin-operated machines are subject to the state and local sales tax, based upon the location of the newspaper dispensing machine.

If you have any questions concerning this notice, you may direct your inquiries to the Kansas Department of Revenue, Taxpayer Assistance Bureau, Docking State Office Building, Topeka, Kansas 66625-0001 or call (913) 296-0222.

Date Composed: 10/06/1997 Date Modified: 10/10/2001