Private Letter Ruling

Ruling Number:P-2002-086
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Sales of memberships to receive discounts at restaurants, retail stores, sporting events, movie theaters, hotels and other service providers.
Approval Date:10/16/2002

Office of Policy & Research

October 16, 2002


Re: Private Letter Ruling Request for XXXX

Dear XXXX:

This letter is in response to your request dated September 20, 2002, on behalf of your client, XXXX, for a private letter ruling on the sales tax treatment of the sale of memberships, which you describe as follows:

Please be advised that it is the opinion of the department that the sale of memberships described above is not subject to Kansas sales or use tax. You acknowledge that your client is liable for Kansas use tax on the membership book, cards and all tangible personal property it uses in Kansas in providing the memberships, that it has long paid taxes to Kansas and has filed required Kansas returns.


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

Very truly yours,

Richard L. Cram

Date Composed: 10/17/2002 Date Modified: 10/17/2002