Private Letter Ruling

Ruling Number:P-2014-005
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Question regarding loyalty cards and Kansas Sales and Use Tax
Keywords:
Approval Date:10/15/2014



Body:
Office of Policy and Research


October 15, 2014



XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX

RE: Private letter ruling regarding whether loyalty cards are subject to Kansas Sales & Use tax

Dear XXXXXXXXX,

In your recent email to the Kansas Department of Revenue you explain that your client, XXXXXXXXXXX, is considering selling “loyalty cards” which will be valid for one year and will provide the following benefits and discounts to those customers that purchase the card:

In your email, you asked if the sale of the "loyalty card" would be subject to Kansas sales tax. No, the sale of the "loyalty card" by the pawn shop which provides the benefits and discounts to the purchaser would not be subject Kansas sales tax under K.S.A. 79-3603.

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,



Robin C. Harris
Tax Specialist
Office of Policy & Research



Date Composed: 10/16/2014 Date Modified: 10/16/2014