Kansas Administrative Regulations

Regulation Number:92-19-56
Agency Title: KANSAS DEPARTMENT OF REVENUE
Article Title: Kansas Retailers' Sales Tax
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Coins, bullion, stamps, antiques, collectables, commemoratives, and
similar items.
Keywords:


Body:

92-19-56 Coins, bullion, stamps, antiques, collectables, commemoratives, and similar items. (a) Each sale of coins, bullion, stamps, antiques, collectables, commemoratives and other similar items is subject to sales tax even though purchased as an investment. It is immaterial that a gain, benefit or other advantage may not be realized until the resale of the item.
(b) Each exchange of currency or coin for other currency or coin at face value is not a transfer subject to sales tax. Each exchange of currency or coin at the current exchange rate is not a transfer subject to sales tax. However, when currency or coin, although acceptable as legal tender, is purchased at rates not reflecting face value as currency or coin, or when the precious metal content of a coin determines its true value, the purchase is subject to sales tax.
(c) The seller's principal line of business is immaterial when determining the taxability of transactions under this section. Each bank, savings and loan or other thrift institution, pawn shop, coin shop, collector, dealer or other person is a retailer under the sales tax act when selling coins, bullion, stamps, antiques, collectables, commemoratives and other similar items at retail to the final user or consumer. Each retailer shall collect sales tax on the total gross receipts received from the sale of coins, bullion, stamps, antiques, collectables, commemoratives and other similar items.
(d) Each sale of a commodity contract for gold, silver and other similar items is not subject to sales tax. However, each sale of bullion and other similar property which is physically transferred in Kansas to the consumer or the consumer's agent or employee is subject to sales tax.
(e) Each person purporting to hold coins, bullion, stamps, collectables, commemoratives and other similar items for resale in the regular course of business shall prove that the person actively engages in the business as a seller of such items. Relevant evidence that a person is a retailer of these items may include:
(1) the number, scope and character of the person's purchases and sales;
(2) evidence of the person's continuing efforts to advertise and sell such items;
(3) evidence that the person holds themselves out to the public as a retailer of such items at an identified place of business;
(4) the manner in which income from transactions in such items is reported by that person for federal and state income tax purposes; and
(5) whether a local business license has been issued to that person to engage in retail sales of such items. (Authorized by K.S.A. 79-3618, implementing K.S.A. 1986 Supp. 79-3603 as amended by L. 1987, Ch. 182, Sec. 108; effective May 1, 1988.)