Opinion Letter

Letter Number:O-2000-016
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Purchases of items for meal preparation for senior citizen sites by an organization that is exempt from federal tax.
Keywords:
Approval Date:09/20/2000



Body:
Office of Policy & Research


September 20, 2000


XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX

Re: Kansas Sales Tax

Dear XXXXX:

Your correspondence of September 14, 2000 has been referred to me for response. Thank you for your inquiry.

Your letter indicates your organization is exempt from federal tax under 501(c)(3), and that part of your service is the preparation of meals for senior citizen sites throughout northwest Kansas. You note that in the past you have purchased items for meal preparation from businesses which have accepted a sales tax exemption certificate from you, but that now some of these businesses have requested a sales tax number and refuse to honor the exemption certificate. By your letter you request our opinion as to whether your organization is exempt from sales tax on its purchases for meal preparation.

The Kansas sales tax is imposed by K.S.A. 79-3603. Exemptions from sales tax are found in K.S.A. 79-3606. Subsection (v) of the statute provides an exemption for:
To claim the exemption, a qualified purchaser should furnish a Food For Homebound Elderly And Disabled Exemption Certificate to the retailer. In accordance with Kansas Administrative Regulation (K.A.R.) 92-19-25, the retailer should accept the certificate in good faith. Subsection (d) of the regulation further provides that when dealing with a nonprofit entity:
Based on the information contained in your letter, it appears your organization falls within the statutory exemption and is therefore entitled to claim the exemption. And, as suggested in your letter, you are correct in asserting the exemption by offering the appropriate exemption certificate to the retailer. As long as the conditions of K.A.R. 92-19-25(d) are satisfied, the retailer should accept the exemption certificate in good faith and make the sale to you without charging sales tax.

I trust this information is of assistance. If I can be of further service, please feel free to contact me.

Sincerely,



Jim Weisgerber
Attorney
Tax Specialist

JW:jw


Date Composed: 09/20/2000 Date Modified: 10/10/2001