Notice

Notice Number:06-02
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Work-Site Utility Vehicle Farm Machinery & Equipment Sales Tax Exemption.
Keywords:
Approval Date:06/06/2006


Body:
KANSAS DEPARTMENT OF REVENUE


NOTICE 06-02
“WORK-SITE UTILITY VEHICLE”
FARM MACHINERY & EQUIPMENT SALES TAX EXEMPTION


Effective July 1, 2006 the retail sale of a “work-site utility vehicle” that is equipped with a bed or cargo box for hauling materials may be purchased exempt from sales tax under the farm machinery and equipment sales tax exemption if used only in farming, ranching or aquaculture production.

2006 Senate Bill 76 amended K.S.A. 8-126 to define a “work-site utility vehicle” as:

The same bill provides that a work-site utility vehicle that is equipped with a bed or cargo box for hauling materials, is included within the definition of “farm machinery and equipment or aquaculture machinery and equipment”. K.S.A. 7903606(t).

To qualify for the farm machinery and equipment exemption from Kansas retailers’ sales tax the purchase must:

1) Be of a work-site utility vehicle, as defined above, that is equipped with a bed or cargo box for hauling materials, or for repair or replacement parts therefor, or services performed in the repair or maintenance thereon, and
2) the work-site utility vehicle must be used only in farming, ranching, aquaculture production, farm and ranch work for hire, operation of a feed lot, nursery or for Christmas tree farm, and
3) the retailer must retain in its records an Agricultural Exemption Certificate, Form
ST-28F (copy attached) completed by the purchaser. As an alternative to the Agriculture Exemption Certificate, the purchaser may certify in writing on a copy of the invoice or sales ticket to be retained by the seller that the work-site utility vehicle will be used only in farming, ranching or aquaculture production.




ALL-TERRAIN VEHICLES REMAIN TAXABLE

All-terrain vehicles do not qualify for the “farm machinery and equipment” sales tax exemption. The definition of an “all-terrain vehicle” is:




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