Private Letter Ruling

Ruling Number:P-1999-119
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Purchases by a non-profit 501(c)(3) exempt corporation funded by grants from the State of Kansas and the U.S. government.
Keywords:
Approval Date:05/21/1999



Body:
Office of Policy and Research

May 21, 1999

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Dear Sirs:

I have been asked to respond to your letter dated May 5, 1999. In it, you ask for guidance in the application sales tax.

In your letter you stated:

Kansas law exempts from sales and compensating tax all direct purchases by political subdivisions of the state of Kansas. K.S.A. 79-3606(b). The term “political subdivision” is defined as “any municipality, agency or subdivision of the state which is, or shall hereafter be, authorized to levy taxes upon tangible property within the state or which certifies a levy to a municipality, agency or subdivision of the state which is, or shall hereafter be, authorized to levy taxes upon tangible property within the state.” K.S.A. 79-3602(n).

It is the opinion of the Kansas Department of Revenue that your organization does not meet requirements of the law to be regarded as a “political subdivision” of the state of Kansas. Based on the information as contained in your letter I am unaware of any other statutory exemption for your organization. Your organization is required to pay sales or compensating tax on purchases or tangible personal property or taxable services.

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 affects this private letter ruling.

Sincerely,


Mark D. Ciardullo
Tax Specialist


MDC


Date Composed: 05/27/1999 Date Modified: 10/11/2001