Kansas Administrative Regulations

Regulation Number:92-20-4
Article Title: Compensating Tax
Tax Type:Kansas Compensating Tax
Brief Description:Purchase price, consideration, trade-ins.


92-20-4 Purchase price, consideration, trade-ins. The actual cost of transportation from the place where the article was purchased to the person using the same in this state is taxable as a part of the consideration and purchase price. Transportation costs mean freight, express, parcel post, or other hauling charges. It shall include charges for crating, packing and preparing tangible personal property for shipment.
The tax is applicable to the full amount of the contract in case of installment, conditional, or credit sales or purchases as the full amount is deemed to be contracted to be paid. Interest, finance or carrying charges on installment purchases are not a part of the purchase price and not taxable when such charges are separately made and so shown by the seller on invoices rendered the purchaser.
Discounts allowed by the seller and taken by the purchaser, shall be deducted in determining purchase price.
An amount equal to the allowance given for the trade-in of property on a sale shall be deducted in arriving at the purchase price.
A manufacturer's excise tax imposed by the federal government, paid at the source by the manufacturer, is a part of the purchase price and is taxable, even though the seller may segregate this tax on the sale invoice. (Authorized by K.S.A. 79-3702, 79-3703, 79-3707, K.S.A. 1971 Supp. 79-
3602; effective, E-70-33, July 1, 1970; effective, E-71-8, Jan. 1, 1971; effective Jan. 1, 1972.)