Opinion Letter

Letter Number:O-2008-006
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Analog-to-Digital Converter Box Coupon Program
Approval Date:03/17/2008

Office of Policy & Research

March 17, 2008


Re: Converter Box Coupon Program

The purpose of this letter is to respond to your letter dated February 8, 2008. In your letter you stated:

You ask if the coupon that is issued by the federal government and presented at the time of purchase by the consumer reduces the taxable gross receipt of the transaction.

The Department has reviewed your request for guidance on this matter. The reimbursement by the Department of Commerce's National Telecommunications and Information Administration to the xxxxxx (retailer) is a part of the taxable gross receipt and is subject to Kansas retailer’s sales tax.

The Department’s rationale is as follows:

Retailers’ sales tax is collected on the gross receipt of the retailer.

In cases in which the retailer is reimbursed by a third party, the sales tax is calculated on the amount the consumer paid the retailer and the amount that retailer is reimbursed.

The following subsection (d) of K.A.R 92-19-16a explains:


Mark D. Ciardullo
Tax Specialist

Date Composed: 10/15/2008 Date Modified: 10/15/2008