Questions and Answers
Federal areas - application of Kansas tax.
Kansas Retailers' Sales Tax
Taxation of sales made in federal areas.
SUBJECT: Sales Tax: Taxation of sales made in federal areas
STATUS: Retailers shall collect state sales tax and any applicable local sales tax on sales made on federal areas located in Kansas.
BASIS: Any person or business that sells tangible personal property at retail or performs taxable labor on a federal area located in Kansas must obtain a Kansas retailers' sales tax registration certificate and collect and remit sales tax on the retail sales and taxable services performed on the federal area and elsewhere in the state. The Buck Act,
Title 4 U.S.C.A., Section 105
et seq., provides:
No person shall be relieved from liability for payment of, collection of, or accounting for any sales or use tax levied by any State, or by any duly constituted taxing authority therein, jurisdiction to levy such a tax, on the ground that the sale or use, with respect to which such tax is levied, occurred in whole or in part within a Federal area; and such State or taxing authority shall have full jurisdiction and power to levy and collect any such tax in any Federal area within such State to the same extent and with the same effect as though such area was not a Federal area. . . .
4 U.S.C.A. 105(a).
The provisions of sections 105 and 106 of this Act shall not be deemed to authorize the levy or collection of any tax on or from the United States or any instrumentality thereof, or the levy or collection of any tax with respect to sale, purchase, storage, or use of tangible personal property sold by the United States or any instrumentality thereof to any authorized purchaser.
4 U.S.C.A. 107(a).
Federal areas in Kansas include, but are not limited to, the McConnell Air Force Base, Fort Riley, Fort Leavenworth, Fort Larned National Historical Site, Fort Scott National Historical Site, Flint Hills National Wildlife Refuge, and the Kirwin National Wildlife Refuge. The Buck Act does not address state sales taxation on Indian reservations.
The act does not authorize the levy of tax on, or requiring the collection of tax by, the United States or an instrumentality of the United States. This includes post exchanges and commissaries, such as those operated by the Army and Air Force Exchange Service (AAFES). However, states, including Kansas, can and do impose sales tax collection duties on concessionaires that do business within a federal area. This includes concessionaires that operate as independent contractors and contract with the post exchanges and commissaries to operate businesses on base. In addition, service men and women and their spouses who operate businesses that make retail sales on base shall register with the department and collect the applicable sales tax for sales made on the base and elsewhere in Kansas.
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