Private Letter Ruling

Ruling Number:P-2006-001
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Guaranteed Auto Protection (GAP) premiums.
Approval Date:12/30/2005

Office of Policy & Research

December 30, 2005


Dear Mr. TTTTTT:

We wish to acknowledge receipt of your letter dated November 3, 2005, regarding the application of Kansas Retailers’ Sales tax.

The Kansas sales tax is imposed the privilege of engaging in the business of selling tangible personal property at retail in this state or the rendering or furnishing of any services taxable under the Kansas Retailers’ Sales Tax Act.

Please be advised that the GAP (Guaranteed Auto Protection) premium would be viewed as the sale of insurance in the state of Kansas. Therefore, the respective premium would not be subject to sales tax in this state.

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. If I may be of further assistance, please contact me at your earliest convenience at (785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist


Date Composed: 01/05/2006 Date Modified: 01/05/2006