Questions and Answers
All Terrain Vehicles
Kansas Retailers' Sales Tax
Sales Tax on Sale of ATV’s
ALL TERRAIN VEHICLES (ATV)
1. ATVs are never exempt as sales of farm machinery and equipment.
Sales of ATVs (all terrain vehicles) to farmers, ranchers, and others engaged in agriculture production are taxable. ATVs do not qualify as farm machinery and equipment for purposes of the sales tax exemption. Therefore, when a dealer sells an ATV to a farmer, rancher, and other person who engages in agriculture production, the dealer is required to collect sales tax regardless of any farm or agriculture use exemption claim that the buyer makes. Charges for repair parts and services for such ATVs are also taxable. An ATV is defined as follows:
‘‘All-terrain vehicle’’ means any motorized nonhighway vehicle 48 inches or less in width, having a dry weight of 1,000 pounds or less, traveling on three or more low-pressure tires,
having a seat designed to be straddled by the operator.
As used in this subsection, low-pressure tire means any pneumatic tire six inches or more in width, designed for use on wheels with rim diameter of 12 inches or less, and utilizing an operating pressure of 10 pounds per square inch or less as recommended by the vehicle manufacturer.
2. Work-site utility vehicles may be exempt as sales of farm machinery and equipment.
Since July 1, 2006, the retail sale of a work-site utility vehicle that is equipped with a bed or cargo box for hauling may be purchased exempt as farm machinery and equipment
it is used
in farming and ranching production. A vehicle qualifies as an work-site utility vehicle for purposes of this exemption only if it satisfies all the requirements of the following definition and is equipped with a bed or cargo box:
‘‘Work-site utility vehicle’’ means any motor vehicle which is not less than 48 inches in width, has an overall length, including the bumper, of not more than 135 inches, has an unladen weight, including fuel and fluids,
of more than 800 pounds and
is equipped with
four or more low pressure tires,
a steering wheel and bench or bucket-type seating allowing at least two people to sit side-by-side,
and may be equipped with a bed or cargo box for hauling materials.
For a dealer to exempt the sale of a work-site utility vehicle as farm machinery and equipment, the vehicle must:
1) Qualify as a work-site utility vehicle, as defined above, and be equipped
with a bed or cargo box for hauling materials;
2) be used
in farming, ranching, aquaculture production, farm and ranch work for hire, operation of a feed lot, nursery or for a Christmas tree farm.
To document the exempt sale, the dealer must obtain a completed Agricultural Exemption Certificate, Form ST-28F, from the buyer that indicates that the buyer is a farmer, rancher, or other person who is entitled to claim an agriculture exemption, that the vehicle being purchased is a work-site utility vehicle for purposes of the exemption, and that the vehicle will
be used in agricultural production operations. In the alternative the dealer may secure a copy of the sales invoice on which the buyer certifies in writing that he is entitled to claim an agriculture exemption, the vehicle being purchased is a work-site utility vehicle for purposes of the exemption, and will be used
in agricultural production operations. The dealer is required to maintain the exemption certificate or invoice as part of its sales tax records. Sales of repair parts and services for a work-site utility vehicle that qualifies for the exemption are also exempt. This exemption extends dealer sales to both Kansas and out-of-state farmers and ranchers.
3. Sales of ATVs and work-site utility vehicles to nonresidents of Kansas.
An ATV or work-site utility vehicles that a Kansas dealer sells to a nonresident is subject to sales tax when the buyer takes delivery of the vehicle in Kansas. Only “motor vehicles”, “semitrailers”, “pole trailers” or “aircraft” may be purchased tax exempt by a "bona fide" resident of another state under the 10-day removal-from-Kansas provision. ATVs and work-site utility vehicles are not motor vehicles”
tax is due when a Kansas dealer is obligated as part of the sale to deliver an ATV or work-site utility vehicle to a non-resident buyer outside Kansas, whether the dealer hires someone to make the delivery for him or makes the delivery himself. The State where delivery is made may require a Kansas dealer who makes such deliveries to register for and collect its State's sales tax.
4. Out-of-State dealers who sell ATVs or work-site utility vehicles to Kansas residents.
ATVs and work-site utility vehicles that out-of-state dealers sell to Kansas residents are subject to Kansas compensating use tax. The rate of the Kansas compensating use tax is the same as the sales tax rate that is in effect where the ATV or work-site utility vehicle will be used or stored. The Kansas buyer is required to remit the Kansas consumers’ compensating use tax to the KDOR on Form ST-10U, which is available from the KDOR web site:
Kansas buyers are required by law to pay the Kansas consumers’ compensating use tax unless the out-of-state dealer has collected the Kansas retailers’ compensating use tax on the sale in an amount that is equal to or more than the Kansas use tax that would have been due but for the out-of-state retailer's collection of the tax. For buyers, the same exemptions that apply to sales tax apply to use tax.
5. Titling of ATVs and work-site utility vehicles.
When an non-highway vehicle is sold or its title is transferred, Kansas law requires the buyer or new title holder to obtain a new non-highway certificate of title.
ATVs and work-site utility vehicles are non-highway vehicles, by definition.
Kansas dealers who sell ATVs or work-site utility vehicles are required to provide a Manufacturer’s Certificate of Origination or a Certificate of Title to the buyer.
Aquaculture, feed lots, nurseries, and Christmas tree farms.
The sales tax rules that apply to farmers and ranchers who buy ATVs or work-site utility vehicles for agriculture use also apply to persons who engage in aquaculture or who operate a feed lot, nursery, or Christmas tree farm and buy an ATV or work-site utility vehicle for exclusive use in their production operations.
Like ATVs, sales of dirt bikes and similar vehicles are never exempt as sales of farm machinery and equipment.
Return to KSA Listing