Private Letter Ruling
Kansas Retailers' Sales Tax
Home furnishings delivered out of state.
Office of Policy & Research
February 22, 1999
Re: Kansas Sales Tax
Dear Mr. XXXXX
Your correspondence of January 26, 1999, has been referred to my attention. Its contents are duly noted. Your letter states, in pertinent part, as follows:
Request for Written Opinion On Sales Tax Rules
Name of Business: XXXXXXXXXX
Type of Product: Retail Sales of Home Furnishings From Shopping Center Location
Customers: General Public, Interior Decorators
Location of Seller: XXXXXXXXXX Overland Park, KS XXXXX
Location of Buyers: Most Buyers Are Kansas residents
Substantial Number of Buyers Are From Missouri
Shipping Method: XXXXXXXXXX owns a truck and has employees who deliver furniture to customers.
We have a number of Missouri Resident customers who come into our store (Located in Kansas) and purchase furniture. We then deliver the furniture to their residence in Missouri using our own truck and employees. Should we charge Kansas sales tax on this sale? Or should Missouri USE Tax Apply? We have no store location in Missouri.
The question you have raised is addressed by Kansas Administrative Regulation (K.A.R.) 92-19-29. The regulation provides:
92-19-29. Sales in interstate commerce.
When tangible personal property is sold within the state and the seller is obligated to deliver it to a point outside the state or to deliver it to a carrier or to the mails for transportation to a point without the state, the retail sales tax does not apply:
, The property is not returned to a point within this state. The most acceptable proof of transportation outside the state will be:
(a) A waybill or bill of lading made out to the seller’s order calling for delivery; or
(b) An insurance or registry receipt issued by the United States postal department, or a post office department’s receipt; or
(c) A trip sheet signed by the seller’s delivery agent and showing the signature and address of the person outside the state who received the delivered goods.
However, where tangible personal property pursuant to a sale is delivered in this state to the buyer or his agent other than a common carrier, the sales tax applies, notwithstanding that the buyer may subsequently transport the property out of this state.
Based on the regulation, the transaction you describe would not be subject to Kansas sales tax. Questions regarding any tax due to the state of Missouri should be presented to the Missouri Department of Revenue.
I trust this information is of assistance. If I can be of further service, please feel free to contact me.
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