Private Letter Ruling

Ruling Number:P-1999-157
Tax Type:Kansas Retailers' Sales Tax
Brief Description:FEMA's (Federal Emergency Management Agency) Project Impact.
Keywords:
Approval Date:07/23/1999



Body:
Office of Policy and Research


July 23, 1999



XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX


Re: Kansas Sales Tax


Dear XXXXX,

Your correspondence of July 6, 1999, has been referred to me for response. Thank you for your inquiry.

Your letter indicates XXXXXXXXX has been selected as the first community in Kansas to participate in the Federal Emergency Management Agency’s Project Impact. As part of Project Impact, XXXXXXXXX has received $500,000 in grant funds to be used for the development of public / private partnerships which will undertake activities to create a more disaster resistant community. One of the activities selected by the Steering Committee and Commissions to receive funding from the grant was the promotion of Emergency Alert Sentinel radios for residences, businesses, schools, etc.

XXXXXXXXX purchased the radios with the grant funds at a reduced price through a partnership with the manufacturer. The radios are being sold by XXXXXXXXX at cost to individual residents and businesses to promote their use in the community and to create awareness of Project Impact. The radios are being sold below cost or being donated to schools and similar institutions.

By your letter you ask whether sales tax should be collected on the sale of these weather alert radios by XXXXXXXXX.

Definitions of terms used in the Kansas retailer’s sales tax act are found in K.S.A. 79-3602. Subsection (d) of the statute defines the term “retailer.” The statute provides:
The statute is interpreted, in part, by Kansas Administrative Regulation (K.A.R.) 92-19-47. The regulation provides:
Based on the information provided in your letter, XXXXXXXXX acquired the radios in question for the purpose of resale. As a result, XXXXXXXXX is deemed to be a retailer and is required by law to collect and remit sales tax. For your convenience, I have enclosed a copy of our Kansas Business Tax Application Booklet which will assist you in registering XXXXXXXX as a retailer.

This private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to make an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this private letter ruling.

I trust this information is of assistance. If I can be of further service, please feel free to contact me.

Sincerely,



Jim Weisgerber
Attorney
Tax Specialist

JW:jw

Enclosure: Kansas Business Tax Application Booklet


Date Composed: 08/03/1999 Date Modified: 10/11/2001