Kansas Administrative Regulations

Regulation Number:92-20-11
Agency Title: KANSAS DEPARTMENT OF REVENUE
Article Title: Compensating Tax
Tax Type:Kansas Compensating Tax
Brief Description:Revoked August 23, 2002.
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92-20-11 Provisions for registration of vendee, user, or other person maintaining inventory in Kansas for use out of state or for an exempt purpose; filing of return; payment of tax. (a) When any vendee, user, or other person subject to the provisions of the compensating tax act maintains an inventory of tangible personal property in Kansas which may be subsequently used outside of the state of Kansas or used for an exempt purpose within this state, the vendee, user, or other person may apply to the director of taxation to remit any compensating tax due on all purchases of tangible personal property. Each vendee, user, or other person shall remit compensating tax to the department of revenue on forms provided by the director of taxation.
(b) When authority has been granted to the vendee, user, or other person to remit compensating tax each vendee, user, or other person shall register with the director of taxation and shall, on or before the 25th day following the end of the reporting period according to K.S.A. 79-3706 and amendments, file a return with the director of taxation. The return shall show the total purchase price of the tangible personal property and the property used by the vendee, user or other person during the preceding reporting period. Each vendee, user, or other person shall remit the amount of tax due with each return.
(c) Each vendee, user, or other person granted permission to register under this regulation shall file the following statement with the registered dealer from whom the vendee, user, or other person is purchasing the tangible personal property:
``In compliance with regulations pertaining to the Kansas compensating tax law, promulgated by the director of taxation, tax remittance due on purchases by us of tangible personal property will be made directly to the director of taxation, tax remittance due on purchases by us of tangible personal property will be made directly to the director of taxation. This authority granted under permit number .

Purchaser.''
(d) Each registered dealer shall keep on file the above statement and use it as authority for deducting the amount of the sales from the registered dealer's total gross receipts from Kansas purchasers to arrive at the registered dealer's net taxable sales.
(e) Direct pay permits shall not be used to purchase exempt from sales tax any taxable service performed by others for the user or consumer who holds a direct pay permit. If the holder of a direct pay permit purchases tangible personal property for the holder's use and not for resale, and the retailer charges the user or consumer Kansas tax, the permit holder shall pay the retailer the tax. Each permit holder shall not purchase the property without tax under the holder's permit number. Use of direct pay permits other than as expressly authorized by this regulation is prohibited.
(Authorized by K.S.A. 79-3707; implementing K.S.A. 79-3702, 79-3704, K.S.A. 1986 Supp. 79-
3703; effective, E-70-33, July 2, 1970; effective, E-71-8, Jan. 1, 1971; effective Jan. 1, 1972; amended May 1, 1988; revoked August 23, 2002.)