Information Guide

Identifying Information:Banks Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Banks Self-Audit Fact Sheet
Keywords:
Approval Date:07/21/2005


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
BANKS SELF-AUDIT FACT SHEET


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:
Furniture and fixtures, including but not limited to: desks, lamps, tables, chairs, shelving, plants, planters, artwork, signs Taxable
Copiers, printers, and fax machines Taxable
Laptop & desktop computers Taxable
Calculators, teller machines and proof machines Taxable
ATMs and/or lease agreements for ATMs Taxable
Software & software upgrades and labor services to modify, alter, update or maintain software. Taxable
Customized software, software upgrades and labor services to modify, alter, update or maintain customized software - "customized" softward = software originally developed for a single end user. Taxable on and after July 1, 2002 through December 31, 2004 - Exempt all other periods
Newspaper and magazine subscriptions, reference books and materials, forms, printed matter (including promotional brochures, etc.), business cards, notepads Taxable
Lease or rental of any tangible personal property - copier, fax, vehicle. Taxable
Deposit/Withdrawal slips and receipts, tape receipts Taxable
Safe deposit boxes Taxable
Security cameras and other security equipment Taxable
Promotional items including but not limited to: coin collections, mugs and t-shirts Taxable
Complimentary items such as balloons, stickers, pens and candy Taxable
Bottled water, softdrinks, coffee, creamer, sugar, cups and stir sticks Taxable
Shredding services Exempt
Cleaning services, plant watering and care Exempt
Trash removal Exempt
Purchase or Lease of real estate, Insurance Exempt
Repair and remodeling labor services to real estate Taxable
Labor services on original construction of new building or facility Exempt
Labor services of repairing, servicing, altering or maintaining tangible personal property, such as computers, printers, copiers, ATMs, security equipment, etc. Taxable
Checks, checkbook covers, credit cards to issue to customers Taxable
Warranty or service agreements for tangible personal property such as, computers, printers, copiers, ATMs, security equipment, etc. Taxable
Sales by Banks:
Credit/Debit card readers Taxable
Coin collections Taxable
Retail sale of tangible personal property - T-Shirts, stuffed toys, etc. Taxable
U.S. Postage Stamps Exempt
Repossessed Vehicles (tax paid by buyer at registration) Exempt




Date Composed: 07/06/2006 Date Modified: 07/06/2006