Private Letter Ruling

Ruling Number:P-2003-050
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Nonprofit educational institution.
Approval Date:10/27/2003

Office of Policy & Research

October 27, 2003


You represent the Apprenticeship Fund #1. Recently, the Apprenticeship Fund #2 ceased operations and transferred all of its assets to the Apprenticeship Fund #1. The department of revenue, by a letter ruling dated March 28, 1978, had exempted the Apprenticeship Fund #2 from sales tax as an nonprofit educational institution. You request a ruling that the Apprenticeship Fund #1 is similarly exempt. Please be advised that the Apprenticeship Fund #1 is not exempt. The Apprenticeship Fund #2 also was not exempt after July 1, 1998 because of a legislative enactment that defined "educational institution." See 1998 Kan. Sess. Laws Chap. 130,Sec. 29. This definition is now found at 2003 HB 2004 Sec.5 (l):

The 1998 enactment effectively revoked the 1978 exemption letter for the Apprenticeship Fund #2. There is nothing in the new definition that exempts the Apprenticeship Fund #1. Accordingly, all of its purchases are taxable.

Please call me if you need to discuss this matter further. 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.

Date Composed: 10/28/2003 Date Modified: 10/28/2003