Revenue Ruling

Ruling Number:19-1998-2
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Construction and application of the sales tax exemption for non-profit organizations that provide nonsectarian comprehensive multidiscipline youth development programs and activities.
Keywords:
Approval Date:12/23/1998


Body:
REVENUE RULING 19-1998-2
December 23, 1998

Issue: Construction and application of the sales tax exemption for non-profit organizations that provide nonsectarian comprehensive multidiscipline youth development programs and activities.

Relevant Statute: K.S.A. 79-3606(ii).

K.S.A. 79-3606(ii) extends a sales tax exemption for sales and purchases by non-profit organizations that provide or sponsor “nonsectarian comprehensive multidiscipline youth development programs.” The department previously required organizations that claimed this exemption to establish their non-profit status by providing an exemption letter secured from the Internal Revenue Service in accordance with I.R.C. Sec. 501(c)(3). The department will no longer require this I.R.S. letter as a condition for qualifying as a “non-profit organization” under K.S.A. 79-3606(ii). This means that the exemption will now extend, for example, to local Boy Scout packs that have not secured formal letter rulings from the I.R.S., as well as to the state-wide Boy Scout Councils that have. When an organization claims sales tax exemption under one of the other subsections of K.S.A. 79-3606 that requires 501(c)(3) status, the department will continue to require an I.R.S. letter as a condition for establishing sales tax exemption. This revenue ruling is effective upon publication.




Karla Pierce
Secretary of Revenue


Date Composed: 12/23/1998 Date Modified: 10/11/2001