Private Letter Ruling

Ruling Number:P-2001-098
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Industrial Revenue Bond (IRB) related.
Keywords:
Approval Date:09/30/2001



Body:
Office of Policy & Research


August 30, 2001

XXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXX

Dear XXXXXXXXXXX:

The purpose of this letter is to respond to your letter dated August 13, 2001.

In your letter you stated:
K.S.A. 12-1773 states:


K.S.A. 79-3606(d) states:


K.S.A. 79-3606(p) states:


The Company respectfully requests your office to issue the following rulings:

No sales tax will be imposed on materials purchased by the Company, the
Company's contractor or the bond trustee which are paid from the proceeds of XXXXXXXXXXX bonds;

The Department agrees with this statement. Funds that are proceeds from STAR bonds are deemed to be funds of the political subdivision. Purchases made with these funds are exempt pursuant to K.S.A. 79-3603(d).

No sales tax will be imposed on materials purchased by the Company, the Company's contractor or the bond trustee which are paid from the proceeds of the IRB issuance;

The Department agrees with this statement. Funds that are proceeds from IRB’s are deemed to be funds of the political subdivision. Purchases made with these funds are exempt pursuant to K.S.A. 79-3603(d).

No sales tax will be due on the labor and services provided by Company's contractor on the construction of the Facility.

The Department agrees with this statement. The labor services to construct the facility and related improvements qualify as original construction labor services that exempt from Kansas retailers’ sales tax pursuant to K.S.A. 79-3603(p).

This private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to make an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this private letter ruling.


Sincerely,



Mark D. Ciardullo
Tax Specialist

MDC


Date Composed: 09/14/2001 Date Modified: 10/11/2001