Information Guide

Identifying Information:Banks, Savings and Loan, Credit Union Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Banks, Savings and Loan, Credit Union Self-Audit Fact Sheet
Keywords:
Approval Date:01/05/2011


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
GANKS, SAVINGS AND LOAN, CREDIT UNION
SELF-AUDIT FACT SHEET



Banks, Savings and Loan, Credit Union Self Audit Fact Sheet


The taxability of sales and purchases of tangible personal property and labor services by Banks are summarized below. This list is not all-inclusive.

BANKS
"Note: Purchases made by banks operated by the federal government are exempt from sales tax. Under federal law, the following entities are not required to pay sales tax on their purchases: Federal Home Loan Banks (12
U.S.C. 1433), Federal Reserve Banks (12 U.S.C. 531), Federal National Mortgage Associations (12 U.S.C. 1723a(c)), Federal Financing Banks (12 U.S.C. 2290), Production Credit Associations (12 U.S.C. 2077), Farm Credit Banks (12 U.S.C. 2023), or Federal Land Bank Associations (12 U.S.C. 2098). All banks, however, must collect sales tax on the retail sale of tangible personal or taxable services as summarized below.”

Purchases by Banks:
Kansas sales or compensating use tax applies to those purchases identified or designated as taxable in the chart below. The applicable Kansas sales or Kansas consumers’ use tax must be paid to the vendor or accrued and remitted directly to the Kansas Department of Revenue. Purchases from Kansas vendors may be reported using the retailers’ sales tax return. Purchases from outside this state which are delivered to this state are to be reported on the Kansas consumers compensating use tax return.

Purchases for use
Furniture and fixtures, including but not limited to: desk, lamps tables chairs, shelving, plants, planters, artwork, signs.Taxable
Copiers, printers and fax machines, microfilmers, check scanners, calculators, etcTaxable
A banks lease or rental of any tangible personal property –, copier, fax, vehicle, etc.Taxable
ATMs and/or lease agreements for ATMs.Taxable
Laptop & desktop computers.Taxable
Proof encoders, check sorters, coin counters, coin packages, coin sorters, coin wrappers.Taxable
Night depositories, pneumatic tube remote teller systems, safe deposit boxes, windows & drawers, lockers.Taxable
Repairs and maintenance to existing buildings, and existing covered structures. (Note: Repairs to existing structures are taxable regardless of whether or not its covered)Taxable
Pest control materials and supplies.Taxable
Labor services on original construction of new building.Exempt
Repair and replacement parts and labor services of repairing, servicing, altering or maintaining tangible personal property such as ATMs, computers, printers, copiers, security equipment, etc.Taxable
Warranty or service agreements for the shop’s tangible personal property such as, shop equipment and tools, computers, printers, copiers, security equipment, etc.Taxable
Trash removal, shredding services, cleaning services (except when applying chemicals such as wax, scotch guard, etc).Exempt
Utilities including but not limited to electricity, gas and water.Taxable
Tangible property purchased by the bank to be given away or donated. (Items that are given away or donated to a tax exempt entity are not subject to sales tax as of April 2007).Taxable
Janitorial supplies.Taxable
Telephone answering services.Taxable
Educational materials, posters, maps or other literature.Taxable
Professional services such as legal or accounting services.Exempt
Linen services.Taxable
Business cards, office supplies, paper, toner cartridges, etc.Taxable
Printed materials production and distribution (such as direct mail items).Taxable
Security systems monitoring service.Exempt
Security cameras and other security equipment purchased.Taxable
Canned Software and software upgrades and labor services to modify, alter, update or maintain software.Taxable
Custom software, custom software upgrades and labor services to modify, alter, update or maintain customized software.
"Custom" software = software developed for a single end user.
Exempt
Newspaper and magazine subscriptions.Taxable


Purchases for use continued:
Advertising in newspapers, radio, television, etc.Exempt
Promotional items including but not limited to: coin collections, calendars, mugs and items of clothing.Taxable
Plumbing, wiring, cabinets and other installation and repair services.Taxable
Complimentary bottled water, soft drinks, coffee, creamer, sugar, cups and stir sticks, balloons, stickers, pens and candy.Taxable
Checks, checkbook covers, credit cards to issue to customers.Taxable
Purchase or Lease of real estate, Insurance.Exempt

The taxability of sales of tangible personal property and labor services by is summarized below. This list is not all inclusive. The applicable sales tax must be collected unless the purchaser provides a valid exemption certificate*.

Sales by Banks
Credit/Debt card readerTaxable
Retail sale of tangible personal property – T-Shirts, stuffed toys, etcTaxable
Repossessed Vehicles (tax paid by buyer at registration)Exempt
Retail sale of coins, bullion, collectible stamps, commemorativesTaxable
U.S Postage StampsExempt
Repossessed Property(if original retailer repossesses property and resells)Taxable

* Sales/rentals to exempt entities with proper exemption certificates provided are exempt from sales tax. Ensure the exemption certificates are retained to substantiate all non taxed transactions.

Note: Kansas tax applies to the “gross receipts” from the sale of taxable goods or services in Kansas. Gross receipts include any amounts collected from the customer including any charges billed for freight, delivery or special handling.



Date Composed: 01/05/2011 Date Modified: 01/05/2011