Kansas Retailers’ Sales Tax
Utility Exemptions for Nonprofit Corps.
STATE OF KANSAS
BILL GRAVES, GOVERNOR
Division of Taxation
915 SW Harrison Street
Topeka, Kansas 66625-0001
FAX (913) 291-3614
Department of Revenue
JOHN D. LaFAVER, SECRETARY
Taxpayer Assistance Bureau
NONPROFIT CORPORATIONS MAY BE ELIGIBLE FOR EXEMPTIONS
Utility retailers and consumers should be aware of a new sales tax exemption available to certain not-for-profit corporations. This notice is intended to help you understand the exemption, who may qualify for the exemption, and how to apply for and obtain the exemption.
Beginning July 1, 1995, sales of natural gas, electricity, water, and heat delivered through mains, lines or pipes, are exempt from the state and local sales taxes when delivered to specific types of property which are exempt from property taxation. The businesses operating on these types of property must be nonprofit corporations.
The five types of property qualifying for this sales tax exemption are properties
- Adult care homes (nursing home).
- Private children's homes (nursing home, foster care, etc.).
- Housing for low and limited income elderly and handicapped persons. (Includes HUD housing projects.)
- Housing for the elderly.
Group housing for mentally ill, retarded, and other handicapped persons.
To qualify for this sales tax exemption, the property must first qualify for the property tax exemption. The property owner applies for the property tax exemption through their county appraiser and the county appraiser then forwards the property tax exemption application to the Board of Tax Appeals (BOTA). The Board of Tax Appeals will mail a letter of determination to the property owner.
Once the property is determined to be exempt from property tax, a copy of the BOTA letter of determination and a completed Department of Revenue sales tax exemption certificate (form BT/st-28B), may be forwarded to the utility providers. The copy of the BOTA letter and the department's sales tax exemption certificate must be kept on file by the utility provider.
The consumer must notify the utility providers of any change in their nonprofit property tax exempt status.
If you have questions regarding this notice, please call (913) 296-0222 or write to the Taxpayer Assistance Bureau, Kansas Department of Revenue, 915 SW Harrison St., Topeka, Kansas, 66625-0001.
NOTICE 95-08 (6/20/95)
TO: Consumers and Retailers of Natural Gas, Electricity, Water, and Heat
RE: Sales Tax Exemption for Specific Property
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