Private Letter Ruling

Ruling Number:P-2001-037
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Museum qualifications and purchases.
Keywords:
Approval Date:04/26/2001



Body:
Office of Policy & Research


April 26, 2001

XXXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXX

The purpose of this letter is to respond to your letter dated March 29, 2001. In it, you request a private letter ruling on behalf XXXXXXXXXXXXX.

In your letter you stated:
1. Are the tangible personal property and services purchased by the Organization for the renovations to the building exempt from sales tax as purchases by a religious organization under K.S.A. 79-3606(aaa) or, in the alternative, as purchases by a non-profit museum pursuant to K.S.A. 79-3606(qq)?

2. If the tangible personal property and services purchased by the Organization for renovation relating to the gift shop are not exempt from sales tax, can the Organization prorate such purchase, paying sales tax on the tangible personal property and services that relate to the gift shop while claiming exemption for the tangible personal property and services relating to the remainder of the museum?

3. Are the donations made by individuals who tour the museum subject to sales tax as admissions? 4. If the donations are subject to sales tax as admission, is the entire amount of such donations subject to sales tax or only the portion that represents fair market value of the tour?

5. If the donations are subject to sales tax as admissions, how would the State propose that the Organization distinguish between donations made by individuals touring the museum and individuals who simply donate money without touring the museum (which presumably would not be subject to sales tax)?


It is the opinion of the Kansas Department of Revenue that:

The organization qualifies as a museum pursuant to K.S.A. 79-3606(qq).

The direct purchase by the organization of tangible personal property and services utilized for the renovation of the building for a museum, including the proposed gift shop are exempt from sales tax.

Donations are exempt from sales tax.

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: 04/27/2001 Date Modified: 10/11/2001