Revenue Ruling

Ruling Number:19-1999-1
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Application of Sales Tax to Sales of Baling Twine
Approval Date:12/08/1999

Office of the Secretary

Revenue Ruling 19-1999-1
December 8, 1999

Issue: Application of Sales Tax to Sales of Baling Twine

Relevant Statutes: K.S.A. 79-3602(l); K.S.A. 79-3606(n); K.S.A. 79-3606(t).

In the past, the Department of Revenue determined that the sale of baling twine to a farmer or rancher was a taxable sale for the farmer’s or rancher’s own use and consumption. A farmer or rancher could claim exemption when buying baling twine by providing the seller with a resale exemption certificate to document that the twine was being resold as part of hay or straw bales. The Department has reviewed this policy and will now exempt the sale of such twine to farmers or ranchers when the twine is used as an ingredient or component part of bales that are either resold or used in the farmer or rancher’s own livestock production operations. See K.S.A. 79-3602(l)(6). This means that retailers may now honor standard exemption certificates from farmers and ranchers to exempt their purchases of baling twine. See e.g. K.A.R. 92-19-25b; Agricultural Exemption Certificate, BT/st 28F (Rev. 11/99); Designated or Generic Exemption Certificate, BT/st 28 (Rev. 6/99). For purposes of this ruling, the term “baling twine” shall include baling twine, baling wire, and baling wrap.

This revenue ruling shall be prospective and shall supersede all previous Department of Revenue notices, revenue ruling, private letter ruling, and other advice on baling twine.

Karla Pierce
Secretary of Revenue

Date Composed: 12/17/1999 Date Modified: 10/11/2001