Private Letter Ruling

Ruling Number:P-2012-007
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Bad check fees and insufficient check charges.
Keywords:
Approval Date:10/02/2012



Body:
Office of Policy & Research
October 2, 2012

XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXXX
XXXXXXXXX
XXXXX, XX XXXXX

Dear XXXXXX;

Your letter dated September 20, 2012, has been referred to me for response. Your letters state, in pertinent part, as follows:

Please note that Publication 1527 applies differently to water utilities. This letter is limited to utilities for gas, electric, and heat. K.A.R. 92-19-3a exempts from Kansas Retailers’ Sales Tax, “charges to customers for insufficient funds checks or closed-account checks.” Therefore, although Kansas Retailers’ Sales Tax is imposed on late fees on utilities for gas, electric, and heat, the fees related to insufficient funds / bad checks are not subject to the tax.

This private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This 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 published revenue ruling, that materially effects this private letter ruling.

Sincerely,



Mark D. Ciardullo
Tax Specialist

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Date Composed: 10/02/2012 Date Modified: 10/02/2012