Notice

Notice Number:09-11
Tax Type:Kansas Retailers' Sales Tax
Brief Description:New Kansas Tax-Exempt Entity Exemption Certificates to be Issued.
Keywords:
Approval Date:07/13/2009


Body:

Kansas Department of Revenue
Office of Policy and Research

Notice 09-11

NEW KANSAS TAX-EXEMPT ENTITY EXEMPTION CERTIFICATES

TO BE ISSUED

July 2009


Since November 2004, the Department of Revenue has issued tax entity exemption certificates to qualified organizations, including schools, governments, hospitals, and certain qualified nonprofit organizations. The certificates include a unique Kansas exemption number, contain the name and address of the exempt entity, and have a certificate expiration date. These tax entity exemption certificates are being replaced with a new certificate as the current certificates start to expire in November 2009. Some of the current certificates have expiration dates throughout 2010, with the latest expiration date being November 30, 2010 but all are being replaced at this time.

As part of the process to renew the exemption certificates the department has revised the certificate to assist you in identifying the old vs. new format. An example of the current and new certificate is on the second page of this notice. The new certificate will be available to tax exempt entities beginning on August 1, 2009. The renewal application is located on our web site, www.ksrevenue.org. Throughout August and September the department will be issuing notices to the entities on how to renew the certificate.

You can continue to honor the current exemption certificate as long as the expiration date has not passed. You must request a copy of the new certificate from your clients as they make purchases. The entities have been told to provide retailers with a copy of their new certificate. If your business provides exempt entities with your own exemption card as part of your exemption process, you must update your systems to ensure you are only allowing tax exempt entities who are issued an exemption by the department to purchase tax exempt. Please note the exemption number has not changed.

This change only affects the tax entity exemption certificate. Other exemption certificates used for agricultural purchases, purchases of resale, for manufacturing and processing, consumed in production, and purchases by the federal government are not affected and continue to be used in the same manner. As a reminder, if you question the validity of an exemption certificate, you can check on a tax entity exemption certificate through a verification process on our web site. Click on exemption certificates under ‘Your Business’ to access the verification application.

For additional information on Kansas sales and use exemptions see Publication KS-1520, Kansas Exemption Certificates, located at: www.ksrevenue.org. For specific questions on this notice or on exemption certificates contact (785) 368-8222.












Date Composed: 07/13/2009 Date Modified: 07/17/2009