Kansas Retailers' Sales Tax
Application of Kansas Retailers' sales and consumers' compensating tax on purchases of motor vehicles to be converted to implements of husbandry.
Office of Policy & Research
REVENUE RULING 19-1998-1
March 4, 1998
Application of Kansas retailers’ sales and consumers’ compensating tax on purchases of motor vehicles to be converted to implements of husbandry.
K.S.A 8-126(cc); K.S.A 79-3606(t)
The purpose of this revenue ruling is to clarify the taxation for purposes of Kansas retailers’ sales tax and Kansas compensating (use) tax on the sale of motor vehicles that are intended to be converted to an implement of husbandry, as defined by K.S.A. 8-126(cc). Implements of husbandry are exempt per K.S.A. 79-3606(t). Persons that separately acquire a motor vehicle and farm equipment accessories necessary to convert the motor vehicle to an "implement of husbandry" shall be required to pay Kansas retailers’ sales tax or Kansas consumers’ "use" tax on the purchase of the motor vehicle. Persons that convert the separately purchased vehicle and accessories and meet requirements of first use, will be able to apply to the Kansas Department of Revenue (Department) for Kansas retailers’ sales tax and Kansas compensating (use) tax refund, for taxes paid on the original purchase of the motor vehicle.
For purposes of Kansas retailers’ sales tax and Kansas compensating (use) tax, the Department recognizes "Implement of husbandry" as farm equipment.
"First use", shall mean the use by the purchaser preceding all other uses. If a person purchases a motor vehicle and the person’s, "first use" is a taxable use, then that person would be barred from obtaining a refund of sales or use taxes paid.
The sale of vehicles that have previously been converted to an implement of husbandry, shall be exempt from for Kansas retailers’ sales tax and Kansas compensating (use) tax.
This revenue ruling is prospective and supersedes all previous Department of Revenue notices, revenue rulings, private letter rulings or other advice regarding this matter.
John D. LaFaver
Secretary of Revenue
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