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Exemption

Certificates

Pub KS-1520

(Rev. 11/15)

This booklet is designed to help businesses

properly use Kansas sales and use tax exemption

certificates as buyers and as sellers. It explains the

exemptions currently authorized by Kansas law and

includes the exemption certificates to use. Businesses

with a general understanding of Kansas sales tax rules

and regulations can avoid costly errors. Use this guide

as a supplement to the Kansas Department of

Revenue’s basic sales tax publication, KS-1510,

Kansas Sales and Compensating Use Tax.

As a registered retailer or consumer, you will receive

updates from the Kansas Department of Revenue

when changes are made in the laws governing sales

and use tax exemptions. Keep these notices with this

booklet for future reference. You may also obtain the

most current version of any exemption certificate or

publication from our website.

TABLE OF CONTENTS

USING EXEMPTION CERTIFICATES ....................... 13

RETAILER RESPONSIBILITIES................................ 3

The Cardinal Rule

What is an Exemption Certificate?

Accepting Exemption Certificates

Blanket Exemption Certificates

Record Keeping

BUYING YOUR INVENTORY .................................... 4

Resale Exemption Certificate Requirements

Kansas Sales Tax Account Numbers

Items Purchased Must Be For Resale

Sample Completed Resale Exemption Certificate

SALES TAX EXEMPTIONS ...................................... 6

Exempt Buyers

Items Exempt from Sales Tax

Uses that are Exempt

The Utility Exemption

SPECIAL SITUATIONS ............................................. 9

Contractors

Project Exemption Certificates

Manufacturers and Processors

Wholesalers

Paying Tax on Personal Use of Inventory

When in Doubt…

RELATED TOPICS ................................................... 12

Audit Issues

Local Sales Tax

Out-of-State Sales

Compensating Use Taxes

Completing the Certificate

Penalties for Misuse

SAMPLE EXEMPT ENTITY CERTIFICATE ............... 15

EXEMPTION CERTIFICATES

Agricultural

(ST-28F) ...................................................................... 17

Aircraft (ST-28L) .............................................................................. 18

Aviation Fuel Exemption

(ST-28LA) .......................................... 19

Consumed in Production

(ST-28C) ......................................... 20

Designated or Generic (ST-28) ................................................ 21

Direct Mail Sourcing (ST-31) ..................................................... 23

Dry Cleaning & Laundry Retailer (ST-28X) ......................... 24

Ingredient or Component Part (ST-28D) ............................... 25

Integrated Production Machinery & Equipment (ST-201) 26

Interstate Common Carrier (ST-28J) ...................................... 28

Multi-Jurisdiction (ST-28M) .......................................................... 30

Project Exemption Request Exempt Entities (PR-76) ..... 32

Project Exemption Request (PR-70b) ..................................... 34

Project Completion Certification (PR-77) ............................ 36

Railroad (ST-28R) ............................................................................ 37

Resale (ST-28A) ................................................................................ 38

Retailer/Contractor (ST-28W) ..................................................... 39

Sales and/or Transient Guest Tax for Lodging (ST-28H) 40

Streamlined Sales Tax (PR-78SSTA) ......................................... 41

Tire Retailer (ST-28T) ..................................................................... 43

U. S. Government (ST-28G) ........................................................ 44

Utility (ST-28B) .................................................................................. 45

Vehicle Lease or Rental (ST-28VL) .......................................... 47

Veterinarian (ST-28V) .................................................................... 48

Warehouse Machinery & Equipment (ST-203) .................. 49

If there is a conflict between the law and information found in this publication, the law remains the final authority. Under no

circumstances should the contents of this publication be used to set or sustain a technical legal position. A library of

current policy information is also available on the Kansas Department of Revenue’s website at: ksrevenue.org

RETAILER

RESPONSIBILITIES

THE CARDINAL RULE

Kansas retailers are responsible for collecting the full

amount of sales tax due on each sale to the final user or

consumer. All Kansas retailers should follow this cardinal

rule:

All retail sales of goods and enumerated

taxable services are considered taxable

unless specifically exempt.

Therefore, for every sale of merchandise or taxable

service in Kansas, the sales receipt, invoice, or bill MUST

either:

• show that the total amount of sales tax due was

collected, or

• be accompanied by a Kansas exemption

certificate or Form PR-78SSTA (Streamlined

Sales Tax Agreement Certificate of Exemption).

WHAT IS AN EXEMPTION CERTIFICATE?

An exemption certificate is a document that a buyer

presents to a retailer to claim exemption from Kansas sales

or use tax. It shows why sales tax was not charged on a

retail sale of goods or taxable services. The buyer completes

and furnishes the exemption certificate, and the seller keeps

the certificate on file with other sales tax records.

An exemption certificate must be completed in its

entirety, and should:

• explain why the sale is exempt,

• be dated,

• describe the property being purchased unless

using Form PR-78SSTA, and

• contain the seller’s name and address and the

buyer’s name, address, and signature.

Some exemption certificates also require a buyer to

furnish the Kansas tax account number or request a

description of the buyer’s business. The exemption

certificates for nonprofit organizations require the exempt

entity’s tax ID number.

The Kansas exemption certificates that begin on page

15 meet these requirements. The requirement also applies

to Form PR-78SSTA. When the appropriate certificate is

used, and all the blanks are accurately filled out, the

certificate may be accepted by a retailer.

ACCEPTING EXEMPTION CERTIFICATES

An exemption certificate relieves a seller from collecting

sales tax if it has obtained the required identifying

information as determined by the director and the reason

for claiming the exemption at the time of purchase. A seller

should:

1) verify the identity of the person or entity presenting

the exemption certificate; and

2) maintain the fully completed exemption certificate in

your sales tax records for at least three years.

You should obtain the appropriate exemption certificate

from your customer at the time of the sale and no later

than 90 days subsequent to the date of sale.

However, some customers claim to be exempt only after

the goods or services have been delivered, and deduct the

tax from the bill. When this happens, you are still

responsible for obtaining an exemption certificate from the

customer. If you are unable to secure an exemption

certificate the sale is considered taxable, and as the retailer,

you will be liable for the tax.

BLANKET EXEMPTION CERTIFICATES

If you make recurring exempt sales of the same type to

the same customer, you are not expected to obtain an

exemption certificate for each transaction. Kansas law

provides that a seller is relieved of liability for the tax when

he obtains a blanket exemption certificate from a purchaser

with which the seller has a “recurring business relationship.”

Such certificate need not be renewed or updated when

there is a recurring business relationship between the buyer

and seller. A “recurring business relationship” exists when

a period of no more than 12 months elapses between sales.

All of the certificates in this booklet may be used as blanket

certificates.

All Tax-Exempt Entity Exemption Certificates (sample

shown on page 15) contain an expiration date. If a

Tax-Exempt Entity Exemption Certificate is obtained by the

seller it can be used for all sales made prior to the expiration

date as provided on the certificate. There is no need for

the seller to obtain multiple copies of this Tax-Exempt Entity

Certificate.

RECORD KEEPING

You must keep all sales tax records, including exemption

certificates, for your current year of business and at least

three prior years. DO NOT send exemption certificates to

the Kansas Department of Revenue with your sales tax

return.

BUYING

YOUR INVENTORY

NOTE: A completed exemption certificate must be obtained from the

customer before the sale is exempt.

Probably the most widely used sales tax exemption is

for the purchase of items intended for resale. When buying

your inventory from a wholesaler or another retailer, or

selling inventory items to another retailer, you will use a

Resale Exemption Certificate (ST-28A) or Form PR-78SSTA.

RESALE EXEMPTION CERTIFICATE REQUIREMENTS

A resale exemption certificate has two requirements:

1) the items purchased must be for resale in the usual

course of the buyer’s business; and 2) the buyer must

have a Kansas sales tax account number, except in

drop shipment situations.

A retailer should make sure both requirements are

provided before accepting a Resale Exemption Certificate

from the customer. The following discussion of these

requirements will help you avoid costly errors.

ITEMS PURCHASED MUST BE FOR RESALE

A buyer can use a resale exemption certificate only to

purchase the property that will be for resale and not for

personal or other nonexempt use. The property being

purchased must be of the type normally sold at retail in the

usual course of the buyer’s business. For example, a

restaurant owner cannot use an exemption certificate to

buy tires or appliances since a restaurant does not

customarily sell these items.

KANSAS SALES TAX ACCOUNT NUMBERS

The Kansas Department of Revenue assigns a sales

tax account number to you after you complete a Business

Tax Application (CR-16). The account number is printed

on your Retailers’ Sales Tax Registration Certificate and is

used to report and pay the sales tax you collect from your

customers to the Kansas Department of Revenue. It is also

the number that MUST be provided on a Resale Exemption

Certificate (ST-28A) or Form PR-78SSTA.

CAUTION: DO NOT accept a photocopy of a

customer’s sales tax registration certificate instead

of a completed exemption certificate. You cannot

exempt a sale from tax simply because the buyer is a

registered retailer.

A common misconception is that a sales tax account

number is also a “tax-exempt” number. However, a sale is

not exempt simply because the buyer has a sales tax

number. A tax number only proves the customer is a

registered retailer; it does not certify that the item(s)

purchased are exempt (for resale or any other reason).

Retailers from other states

As a general rule, wholesalers and buyers from other

states not registered in Kansas should use the Multi-

Jurisdiction Exemption Certificate (ST-28M) or a PR-78SSTA

to buy items for their resale inventory. These certificates

may also be used by wholesalers to buy their inventory. If

the inventory item purchased by an out-of-state retailer is

drop shipped to a Kansas location, the out-of-state retailer

may provide to the third party vendor a Resale Exemption

Certificate from any state, or the Multi-Jurisdiction

Exemption Certificate showing registration for any state.

They may also use PR-78SSTA exemption certificate. The

law does not require that they have a Kansas registration in

order for the sale to be exempt.

Sales Tax Account Number Format

Your Kansas sales tax account number has three distinct

parts:

004-481880059F-01

Tax Type. Each tax type administered by the Kansas

Department of Revenue has been assigned a number.

The “004” is the number assigned to Retailers’ Sales Tax.

The tax type number appears on your registration certificate

and on the sales tax return.

Account Number = EIN (Employer Identification

Number). The account number is your federal EIN,

followed by the letter “F.” The nine-digit EIN is issued by

the Internal Revenue Service to identify employers and

businesses.

If you are not required to have an EIN, the Kansas

Department of Revenue will create an account number for

you. These account numbers begin with a “K” (or an “A” if

registering online with the Kansas Business Center) followed

by eight numbers and the “F.” For example:

004-K12345678F-01

Numerical Suffix. The two-digit code at the end of

the number is for the Kansas Department of Revenue’s

use. For most taxpayers it is “01.” This code could either

denote the number of locations or number of registrations

under this EIN, “K”, or “A” number.

SAMPLE COMPLETED RESALE EXEMPTION

CERTIFICATE

All the blanks on an exemption certificate should be

completed before the exemption certificate may be

accepted by a retailer (page 14). Use the Resale Exemption

Certificate illustrated in the following example as a guide.

Also, the Form PR-78SSTA may be used.

_____________________________________________________________________________________________

________________________________________________________________________________________________________

James Adams owns a convenience store in Topeka, and buys his inventory from Wholesale Candies and Snacks.

His sales tax account number is 004-740000000F-01. The Resale Exemption Certificate he completed for his vendor

is below. He also purchased display racks from this vendor, but since he is the final consumer of the racks, they

were invoiced separately and he paid the sales tax on them.

KANSAS DEPARTMENT OF REVENUE

RESALE EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property or service purchased from:

Wholesale Candies

Seller: _________________________________________________________________________________________________

Business Name

123 Main Street Topeka KS 66612

Address: ________________________________________________________________________________________________

Street, RR, or P. O. Box City State Zip

will be resold by me in the form of tangible personal property or repair service. I hereby certify that I hold valid Kansas sales

004-740000000F-01 food, gasoline, and beverages

tax registration number ____________________________ , and I am in the business of selling ___________________________

(May attach a copy of registration certificate)

(Description of product(s) sold; food clothing, furniture, etc.)

candy, gum, packaged snacks

Description of tangible personal property or services purchased: _________________________________________________

I understand and agree that if the items purchased with this certificate are used for any purpose other than retention, demonstration,

or display while being held for sale in the regular course of business, I am required to report and pay the sales tax, based upon the

purchase price of the items.

James Adams Convenience Store

Purchaser: _______________________________________________________________________________________________

Name of Kansas Retailer

2171 Southwest Blvd Topeka, KS 66611

Address: ________________________________________________________________________________________________

Street, RR, or P. O. Box City State Zip

Signature: ___________________________________________________________________ Date: ___________________4/28/11

James Adams

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS CERTIFICATE? Only those businesses and organizations that are registered to collect Kansas sales tax and

provide their Kansas sales tax registration number on this form may use it to purchase inventory without tax. For additional information

see Publication KS-1520, Kansas Exemption Certificates.

Nonprofit groups or organizations exempt by law from collecting tax on their retail sales of tangible personal property (such as a

PTA or a nonprofit youth development organization) should use the exemption certificate issued to it by the Department of Revenue

when buying items for resale.

Wholesalers and buyers from other states not registered in Kansas should use the Multi-Jurisdiction Exemption Certificate,

Form ST-28M, to purchase their inventory. HOWEVER, if the inventory item purchased by an out-of-state retailer who has sales tax

nexus with Kansas is drop shipped to a Kansas location, the out-of-state retailer must provide to the third party vendor a Kansas

sales tax registration number, either on this certificate or the Multi-Jurisdiction Exemption Certificate, for the sale to be exempt. If the out-

of-state retailer DOES NOT have sales tax nexus with Kansas, it may provide the third party vendor a resale exemption certificate

evidencing qualification for a resale exemption, regardless of the state in which the retailer is registered for sales tax.

Contractors, subcontractors, or repairmen may not use this certificate to purchase their materials, parts, or tools. Retailer/

Contractors should use a Retailer/Contractor Exemption Certificate, Form ST-28W, to purchase their resale inventory.

WHAT PURCHASES ARE EXEMPT? Only goods or merchandise intended for resale (inventory) are exempt. Tools, equipment,

fixtures, supplies, and other items purchased for business or personal use are TAXABLE since the buyer is the final consumer of the

property.

The items purchased with this certificate must correspond to the type of business buying them. For example, a retail clothing store

may only reasonably purchase items of wearing apparel and accessories with this certificate. All other kinds of items are not usually sold

by a clothing store to their customers and, therefore, cannot be purchased with this certificate.

LABOR SERVICES. This certificate applies ONLY to items of tangible personal property. A contractor may not use an exemption

certificate to purchase the labor services of another contractor or subcontractor. Taxable labor services performed by a contractor

can ONLY be purchased without tax with a Project Exemption Certificate issued by the department or its authorized agent.

RETAINING THIS CERTIFICATE: Sellers should retain a completed copy of this certificate in their records for at least three years

from the date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which

the seller has a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business

relationship between the buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses

between sales transactions.

SALES TAX EXEMPTIONS

The sales tax exemptions authorized by Kansas law fall

into three general categories. These are: entities who are

exempt, specific items that are exempt, and uses of an

item that makes it exempt. This section explains each

category with examples and exceptions noted. Additional

information about an exemption is part of the certificate

designed for it.

EXEMPT ENTITIES

All of the following entities are exempt from sales tax

when making a direct purchase of goods. Most, but not all

of these entities, are also exempt when making a direct

purchase of a taxable service. The Tax-Exempt Entity

Exemption Certificate issued by the Kansas Department

of Revenue to the entity states whether its exemption is

limited to just goods or whether the exemption extends to

services as well. A direct purchase is one that is billed

directly to the exempt buyer. A retailer can require payment

by check, voucher or warrant of the exempt entity, but it is

not mandatory to do so.

• The U.S. Government, its agencies and

instrumentalities

• The state of Kansas and Kansas political sub-

divisions: school districts, counties, cities, etc.

• Elementary and secondary schools

• Noncommercial educational television and radio

stations

• Nonprofit blood, tissue and organ banks

• Nonprofit educational institutions

• Nonprofit 501(c)(3) historical societies

• Nonprofit hospitals

• Nonprofit 501(c)(3) museums

• Nonprofit 501(c)(3) primary care clinics

• Nonprofit 501(c)(3) religious organizations

• Nonprofit 501(c)(3) zoos

• Nonprofit youth development programs

• Parent-teacher organizations (PTA or PTO)

FOR A COMPLETE LIST OF EXEMPT ENTITIES SEE PAGE 16.

The 501(c)(3) designation refers to the section of the

Internal Revenue Code under which a nonprofit entity has

been granted an exemption from federal (and state) income

tax. Although used to define who qualifies for an exemption,

a nonprofit 501(c)(3) designation does not mean the

organization is automatically exempt from sales tax. Only

the entities listed under Kansas sales tax statutes are exempt

from paying Kansas sales tax on their direct purchases

when the appropriate exemption certificate is completed

and provided to the retailer.

Although exempt by law, these entities must still support

their exemption with a completed exemption certificate. This

booklet contains exemption certificates that can be used

for each of these exempt buyers with examples and

common pitfalls to avoid or, Form PR-78SSTA can be used.

There are special rules applicable to exempt entities on

purchases for certain construction projects and repair work.

See Project Exemption Certificates (found herein).

Exception: When the state of Kansas or nonprofit

hospital operates a taxable business (such as a public

cafeteria or gift shop), or when a political subdivision

sells or furnishes utilities, “non-inventory items”

purchased for use in these taxable businesses are

taxable to the otherwise exempt group.

A city’s gas utility must pay sales tax on office

equipment, pipe and vehicles used (even

partially) by it’s gas utility. A hospital must

pay sales tax on its restaurant equipment,

furniture, fixtures and reusable utensils purchased for its

public cafeteria.

Credit Cards

Many government agencies are issuing credit cards to

employees and agents who travel or make purchases while

on official business or on behalf of the agency. When the

agency is responsible for payment of credit card charges,

purchases made by employees with said credit card are

exempt from Kansas sales or use tax as a direct purchase.

When someone other than the exempt entity is responsible

for payment of the credit card charge, the purchase is not

automatically exempt. The appropriate exemption certificate

must be obtained.

Exception: The rental of hotel rooms by agents or

employees of the U.S. Government while on official

business is exempt regardless of the method of payment.

Buyers who are NOT exempt

A common misconception is that all nonprofit

organizations are exempt from retailers’ sales tax. While a

nonprofit status for income tax purposes may be a

requirement for a Kansas sales tax exemption, nonprofit

organizations that have not been granted a specific sales

tax exemption must pay tax on their purchases. Groups

and organizations that are NOT EXEMPT from paying

Kansas sales tax include alumni associations, charitable

and benevolent organizations, clubs, labor unions, and

professional associations.

CERTIFICATES FOR TAX-EXEMPT ENTITIES

Kansas law requires that all sales tax-exempt entities

obtain and utilize only exemption certificates issued by he

Kansas Department of Revenue or the SSTA exemption

certificate (PR-78SSTA). These certificates, an example

of which is on page 15, contain the exempt entity’s NAME,

ADDRESS, and TAX EXEMPTION NUMBER issued by

the Kansas Department of Revenue. Any sales tax-exempt

entity that does not have an exemption certificate may apply

online at the Kansas Department of Revenue’s website.

The purpose of the tax-exempt exemption certificates is

to control fraudulent tax-exempt purchases and to assist

retailers, sales people and cashiers in identifying exempt

entities and easily determining whether a claim for

exemption is valid, based on the exempt entity’s status.

Unless the seller already has it on file, if one of the entities

listed on page 16 requests an exemption and they do not

present the Kansas Department of Revenue-issued

certificate or Form PR-78SSTA (providing the purchaser’s

Tax-Exempt Identification Number), the seller must deny

the request. The Kansas Department of Revenue asks that

you advise the purchaser to contact us for guidance.

Be advised that the tax-exempt entity exemption

certificate does not apply to farmers, to purchases by the

federal government, to manufacturing and processing

related exemptions, or other use-based exemptions. Also,

the tax-exempt ID number is separate and apart from a

Kansas sales tax registration number (format 004-

XXXXXXXXXF-0X) required of anyone (including exempt

entities) making retail sales of taxable goods, services or

admissions in Kansas.

Sales to Exempt Entities not based in Kansas

Many of the exemptions granted under K.S.A.

79-3606 also apply to non-Kansas organizations. While a

Kansas-based organization must provide its numbered

certificate (or Form PR-78SSTA with the the Kansas

Department of Revenue-issued identification number) to

make an exempt purchase of goods or taxable services in

Kansas, many non-Kansas exempt organizations will not

have been issued an exempt entity ID number. While

encouraged to obtain a Kansas exempt entity ID number

(visit our website to apply), a non-Kansas exempt entity

(such as a school located in another state) making a direct

purchase in Kansas will simply need to complete an

exemption certificate for the retailer. The Designated or

Generic Exemption Certificate (ST-28) has been designed

for this purpose.

ITEMS EXEMPT FROM SALES TAX

These items are enumerated in the law as exempt from

sales tax:

Aircraft sales, parts, and repair services for carriers in

interstate or foreign commerce; and repair, replacement

and modification parts and service on all aircraft

Broadcasting equipment purchased by over-the-air free

access radio and television stations to generate their

broadcast signals

Drill bits & explosives used in the exploration of oil & gas

Drugs and pharmaceuticals sold to veterinarians

Farm machinery and equipment

Food sold to groups providing meals to the elderly and

homebound, or sold by a nonprofit 501(c)(3)

organization under a food distribution program that sells

food below cost in exchange for community service

Integrated production machinery and equipment

Materials purchased by a community action group to repair

or weatherize low-income housing

Medical supplies and equipment purchased by a nonprofit

nursing home

Public health educational materials purchased by a

nonprofit corporation for free distribution to the public

Railroad parts, materials, and services for railroad rolling

stock used in interstate or foreign commerce

Rolling stock (trucks, buses, tractor-trailers, etc.), repair

or replacement parts, and motor fuels purchased by

ICC carriers

Warehouse machinery and equipment

Other items not taxed in Kansas include food stamp

purchases, Child Nutrition Act (WIC) program purchases,

lottery tickets, prescription drugs and insulin, and prosthetic

and orthopedic appliances.

Prosthetic Devices/Mobility Enhancing Equipment/

Oxygen Delivery, Kidney Dialysis Equipment and

Enteral Feeding Systems purchased by the individual

for whom prescribed in writing by a licensed physician,

chiropractor, optometrist, dentist, or podiatrist are not

taxed [K.S.A. 79-3606(r)]. Exempt prosthetic devices

include canes, crutches, eyeglasses, orthodontic braces,

prosthetic limbs and braces. Exempt mobility enhancing

equipment includes chairlifts, patient lifts, bath lifts,

stairlifts, railings; wheelchairs, and accessories attached

to motor vehicles (such as wheelchair lifts and

specialized hand or foot controls). For examples of

prosthetic devices and mobility enhancing equipment

see Appendices L and M of Governing Board rules at

streamlinedsalestax.org.

Repair and replacement parts and labor for the exempt

equipment are also not taxable if you have the original

prescription order on file. Labor charges for installation

of prescribed mobility enhancing equipment are exempt.

Sales of prosthetic and mobility enhancing equipment

to doctors for their inventory, display or use in the

performance of their duties are taxable.

NOTE: This exemption does not apply to hot tubs, whirlpools, motor

vehicles, or personal property which when installed becomes a fixture

to real property (except for stairlifts or railings).

USES THAT ARE EXEMPT

Items may also be exempt from sales tax because of

how they are used. Items that are ingredient or component

parts or are consumed in the production of property or

services that are later sold to the final consumer are exempt.

These two exemptions are applicable to many types of

businesses.

IMPORTANT: Contractors may NOT use the

Consumed in Production or the Ingredient or

Component Part exemptions to buy their materials.

Ingredient or Component Part

Items that become a part of a finished product to be

sold to the final consumer are exempt as ingredient or

component parts. In order to qualify the item must:

• be necessary and essential to the finished product,

• be used in or on the finished product,

• become a physical part of the finished product, and

• become an ingredient or compound part of property

or service for retail sale.

As a general rule, if the item leaves with the product and

is not returned for reuse by the manufacturer or retailer, it is

an ingredient part. Examples include, but are not limited to:

• paper and ink for publishing newspapers and

magazines;

• containers, labels, shipping cases, twine, and

wrapping paper which are not returned to the

manufacturer;

• food that will be prepared and sold as meals;

• paper bags, drinking straws, and paper plates used

in food sales;

• feed for commercial livestock, and

• fertilizer used in the production of plants and plant

products produced for resale.

To use the Ingredient or Component Part Exemption

Certificate (ST-28D) or Form PR-78SSTA, the buyer must

have a Kansas sales tax account number OR a Kansas

manufacturers’ or processors’ exemption number (see

Manufacturers and Processors herein).

Consumed in Production

Like ingredient or component parts, items that are

“consumed in production” must meet certain qualifications

to be exempt. The item must be:

• necessary and essential to the process,

• used in the actual process,

• consumed or dissipated by the process within one

year,

• used in the process of producing, manufacturing,

processing, mining, drilling, refining or compounding

of tangible personal property; the treatment of by-

products or wastes from any such production

process; the providing of services; the irrigation of

crops; or the storage and processing of grain; and,

• not reusable for such purposes.

Examples include utilities to power manufacturing

machinery, or fertilizers and insecticides used in growing

crops. Additional examples are in the Consumed in

Production Exemption Certificate (ST-28C).

Exempt Agricultural Uses

Since many items used in agriculture are exempt either

as ingredient or component parts or are consumed in

production, these two exemptions are part of the Agricultural

Exemption Certificate (ST-28F). Form PR-78SSTA may also

be used. Other exempt agricultural uses include:

Agricultural animal (cattle, hogs, sheep, chickens,

ostriches, etc.) and aquatic animals and plants when

used in the production of food for human consumption;

the production of animal, dairy, poultry, or aquatic plant

and animal products, fiber, or fur; or the production of

offspring for the above purposes. The purchase of

pleasure animals or pets is taxable.

Seeds, tree seedlings, chemicals, and services purchased

and used for the purpose of producing plants to prevent

soil erosion on land devoted to agricultural use.

Propane used for an agricultural purposes (i.e., propane

to power farm implements or to provide heat for brooder

or farrowing houses). Propane for recreational use, such

as RVs and barbecue grills, is taxable.

THE UTILITY EXEMPTION

Utilities may be exempt from sales tax in much the same

way as goods or services — certain buyers are exempt,

and certain uses are exempt. As used here, “utilities” are

electricity, gas, water or heat.

Buyers Who Are Exempt

The exempt buyers listed on page 6 do not pay sales

tax on their utilities. However, when the state of Kansas, a

political subdivision, or a nonprofit hospital is also engaged

in a taxable business, utilities used in that business are

TAXABLE, unless the use itself qualifies for exemption.

Exempt and taxable uses for political subdivisions and

nonprofit hospitals are as follows.

City Electric Departments. Exempt: Utilities used to

generate the electricity. Taxable: Utilities used to heat, cool

and/or light the generating plant and/or administrative

offices.

Nonprofit Hospitals. Exempt: Utilities used to provide

medical services and nonprofit hospital administration;

electricity/gas to operate grills and ovens in the public

cafeteria. Taxable: Utilities used by a gift shop; water to

clean a cafeteria open to the general public.

Nonprofit corporations who provide nursing or foster

care for children, the elderly, or disabled may also be

exempt from paying sales tax on their utilities. To qualify,

the Board of Tax Appeals (BOTA) must first have granted

the nonprofit corporation an exemption from real estate

property tax.

Exempt Utility Uses

Electricity, gas, water and heat used as an ingredient

or component partl; consumed in production; in the irrigation

of crops; for movement in interstate commerce; for

providing taxable services; and, in the severing of oil are

exempt from sales tax.

NOTE: Agricultural and noncommercial residential use of electricity,

gas or heat are exempt from the state sales tax, but are subject to

any applicable local (city and/or county) sales tax in effect at the

customer’s location. Agricultural and noncommercial residential use

of water is exempt from both sale and local sales tax.

Use these general guidelines and illustrations to

determine if a portion of the utilities used by your business

is exempt. Unless part of an integrated production operation,

utilities used to light, heat, cool, clean, or maintain

equipment, buildings, or business facilities are TAXABLE.

Agricultural. State Exemption: Gas and electricity use

related to farming or ranching, such as the electricity

needed to operate milking machines or to run a grain auger.

(Local sales tax applies.) Water use related to farming and

ranching is exempt from both state and local sales tax.

Consumed in Production. The utility use must meet

the consumed in production criteria on page 8. Exempt:

Utilities used to operate tools and manufacturing

machinery. Taxable: Utilities to light, heat or cool a

nonproduction area.

Ingredient or Component Part. The utility use must

meet the definition of an ingredient or component part as

described on page 8. Exempt: Water to make soft drinks

or other beverages. Taxable: Water used to clean vats

and brewing equipment.

Irrigation of Crops. Exempt: Electricity or other power

sources to run an irrigation pump or water applied to

growing crops.

Movement in Interstate Commerce by Railroad or

Public Utility. Exempt: Electricity or gas used to pump or

push oil or gas through an interstate pipeline, provided the

pipeline is registered with the Federal Energy Regulatory

Commission. Taxable: Utilities used by non-interstate

pipelines. Utilities used to operate railroad signal lights and

switches.

Noncommercial Residential. State Exempt: Gas and

electricity used in your home for nonbusiness purposes.

(Local sales tax applies). State and Local Exempt: Water

used in your home for nonbusiness purposes.

Gas and electricity used in an apartment or

condominium for nonbusiness residential

purposes are exempt from state sales tax but

local sales tax still applies. Water used in the

apartment or condominium for non-business residential

purposes is exempt from both state and local sales tax.

Providing Taxable Services. To qualify, the service must

be subject to sales tax. Utilities used by those who provide

nontaxable services, such as a doctor, lawyer, accountant,

or childcare center are TAXABLE.

Utilities used in hotel rooms that are occupied

by hotel guests are exempt. Utilities for

lobbies, conference rooms, hallways,

administrative offices, swimming pools, and

parking lots are taxable.

Severing of Oil. Exempt: Electricity or gas to power

pumps that remove oil or gas from the ground. Taxable:

Electricity or gas for lighting and other nonextraction

purposes at the pump station.

Obtaining a Utility Exemption

To request an exemption for electricity, gas or water

used in your business you must complete Statement for

Sales Tax Exemption on Electricity, Gas or Water Furnished

Through One Meter (ST-28B). You will need to complete a

form for each utility meter on which you are requesting an

exemption. Follow these steps to obtain an exemption on

your utility.

1) Using the instructions and examples that accompany

the form, determine your exempt percentage. You

may need the assistance of a plumber or electrician

to complete the formula.

2) Give the original completed form to your utility

company along with all the workpapers and

documents used to compute your “Exempt Percent.”

Be sure to keep a copy of the form and your work

papers for your records.

3) The utility company may forward your exemption

request to the Kansas Department of Revenue for

review before granting the exemption.

4) Once approved, the utility will grant the exemption.

IMPORTANT: When there is a change in your

“Exempt Percent,” it is your responsibility to

immediately file a revised utility exemption form with your

utility provider.

SPECIAL SITUATIONS

CONTRACTORS

A contractor, subcontractor, or repairman (hereafter

referred to as contractor ) is any person who agrees to

furnish and install parts or materials, or performs the labor

service of installing the parts or materials for a specified

price. Contractors are considered to be the final user or

consumer of their materials and must; therefore, pay sales

tax on them when purchased from their vendors.

A retailer/contractor is a contractor who maintains an

inventory of materials. Examples of retailer/contractors

are building, electrical, and plumbing supply houses that

not only sell to the final consumer but also perform

construction or installation work.

This distinction between a contractor and a retailer/

contractor only determines when sales tax is paid on

materials. Materials are always taxable unless purchased

with a Project Exemption Certificate (PEC).

A contractor must pay sales tax on supplies and

materials when buying from the supplier. If the supplier is

an out-of-state retailer, a contractor will pay consumers’

use tax on the supplies and materials (see Compensating

Use Taxes herein). Contractors cannot use a Resale

Exemption Certificate to buy materials and supplies without

sales tax.

A retailer/contractor must either collect sales tax

when the merchandise is sold at retail or self-accrue

the tax due when materials are removed from its tax-

exempt resale inventory for a contract job (see Paying

Tax on Personal Use of Inventory herein). Retailers/

contractors will use the Contractor-Retailer Exemption

Certificate (ST-28W) to purchase their inventory (may

also use Form PR-78SSTA ).

Labor Services

The services of installing, applying, servicing,

repairing, altering, or maintaining tangible personal

property are subject to sales tax. This includes work

performed on tangible personal property that, once installed

or applied, becomes a part of real property. However, the

labor services of installing or applying are not taxable when

performed in connection with the “original construction” of a

building or facility. “Original construction” is defined as the:

•

first or initial construction of a new building or facility

addition of an entire room or floor to an existing

building or facility,

construction, reconstruction, repair, replacement,

remodeling or renovation of a residence

• restoration, reconstruction, or replacement of a

building, facility or utility structure damaged or

destroyed by fire, flood, tornado, lightning,

explosion, windstorm, ice loading and attendant

winds, terrorism or earthquake

• completion of any unfinished portion of an existing

building or facility, or

• construction, reconstruction, restoration,

replacement, or repair of a bridge or highway.

A facility is a mill, plant, or refinery; oil, gas, or water well; feedlot;

and a transmission and distribution line owned by a REA or municipality.

A residence includes all types of dwellings where individuals

customarily live — homes, apartments, nursing homes, etc.

A utility structure shall mean transmission and distribution lines owned

by an independent transmission company or cooperative, the Kansas

electric transmission authority or natural gas or electric public utility. A

windstorm shall mean straight line winds of at least 80 miles per hour

as determined by a recognized meteorological reporting agency or

organization.

When a subcontractor is performing taxable labor

services for a general contractor, the subcontractor must

charge sales tax to the general contractor. A contractor

may NOT use a Resale Exemption Certificate to purchase

the labor services of another contractor without tax.

PROJECT EXEMPTION CERTIFICATES (PECs)

A Project Exemption Certificate (PEC) is a numbered

document issued only by the Kansas Department of

Revenue or its authorized agent (See Agent Status herein).

As the name implies, a PEC exempts the entire project

(materials and labor) from sales tax. Two types of projects

may receive a project exemption. Projects for entities who

are exempt, and certain economic development projects.

The following exempt entities qualify to use Form

PR-76 to request a PEC or apply online for most

construction, remodel, or repair projects:

• Kansas political subdivisions

• Nonprofit hospitals

• Nonprofit schools & educational institutions

• Nonprofit zoos

• Primary care clinics and health centers

• Religious organizations

• U.S. Government and its agencies

Form PR-78SSTA may also be used; however, the

purchaser must provide a the Kansas Department of

Revenue-issued PEC Number on that form.

CAUTION: The state of Kansas and its agencies

DO NOT qualify for PECs (except state of Kansas

correctional institutions including a privately

constructed correctional institution contracted for state use

and ownership). Materials purchased by contractors for a

state of Kansas project are taxable. Only direct purchases

by the state of Kansas or its agencies are sales tax exempt

– using their the Kansas Department of Revenue issued

Tax-Exempt Entity Exemption Certificate (or Form PR-

78SSTA containing the Tax-Exempt Entity Identification

Number issued by the Kansas Department of Revenue).

A project may also qualify for a PEC because it is an

economic development project. The qualifications are

outlined in the request form PR-70b (found herein).

IMPORTANT: PECs are dated and are not

retroactive. All materials purchased and all taxable

labor services performed prior to the effective date of the

PEC or after the expiration date are taxable. Project

exemptions apply only to one specific project and expire

upon completion of that project.

Agent Status for Project Exemption Certificates

Certain exempt entities may request “Agent Status” when

applying online for PECs. Agent Status, once granted, will

allow the following entities to complete the application online

and be immediately approved for a PEC. The applicant

can then print the PEC and supply it to contractors working

for them. This Agent Status authority is limited to: State of

Kansas Correctional Institutions, Kansas Political

Subdivisions, Nonprofit Hospitals and Nonprofit Schools,

and Education Institutions.

Project Exemption Steps

The following chronological steps illustrate how a PEC

is requested, issued and used by the project’s owner,

contractors and suppliers.

1) A qualifying entity (petitioner) completes a request

for project exemption by completing a paper

application (found herein) or by applying online at

ksrevenue.org. Agent Status PECs must be

completed online in order that the petitioning authority

be able to immediately print a PEC.

2) The Kansas Department of Revenue receives and

approves or denies the request (Agent Status online

applications are approved automatically).

3) If approved, the Kansas Department of Revenue

issues a numbered PEC to the petitioner. Agent Status

– able to immediately print a PEC once the online

application is completed.

4) The petitioner furnishes the numbered PEC (or Form

PR-78SSTA that contains the PEC number issued by

the Kansas Department of Revenue) to contractors

and subcontractors for the job.

5) Contractors and Subcontractors furnish the numbers

certificate (or Form PR-78SSTA including the PEC

Number issued by the Kansas Department of

Revenue) to their suppliers.

6) Suppliers should put the certificate number on all

project invoices to verify the sale of materials and/or

labor is exempt.

7) When the project is complete, contractor(s) must

furnish the Project Completion Certification (found

herein) to the petitioner with a copy to the Kansas

Department of Revenue.

8) Contractor(s) keep all project invoices for five years.

MANUFACTURERS AND PROCESSORS

Manufacturers and processors are eligible to purchase

their raw materials or parts exempt from sales tax. However,

if they do not also sell to the final consumer and have a tax

account number, they will not be able to provide a Kansas

retailers’ sales tax account number that is required in order

to use the Ingredient or Component Part Exemption

Certificate (ST-28D).

To remedy this situation, the Kansas Department of

Revenue issues a manufacturers’ or processors’ sales tax

exemption number to those manufacturers and processors

that never make a retail sale, and therefore do not have a

sales tax account number. Use this number on the

Ingredient or Component Part Exemption Certificate (ST-

28D) or Form PR-78SSTA when buying raw materials. To

obtain a manufacturers’ or processors’ sales tax exemption

number, apply online at the Kansas Department of

Revenue’s website.

CAUTION: Manufacturers and processors who

make sales to the final user or consumer must be

registered to collect sales tax on these sales. Often

these sales are to their employees – a the sale of factory

seconds or first-quality products at discount.

WHOLESALERS

A wholesaler is a company that sells only to other

wholesalers or to retailers registered for sales tax.

A wholesaler by definition never sells to the final consumer

(retail sale). Kansas wholesalers are not required to register

with the Kansas Department of Revenue to collect sales tax.

An exemption certificate must accompany wholesale

sales. When a wholesaler sells to a Kansas retailer for

resale, the Resale Exemption Certificate (ST-28A) or

PR-78SSTA should be used. The Multi-Jurisdiction

Exemption Certificate (ST-28M) is used when a wholesaler

is buying inventory, selling to another wholesaler, or selling

to a retailer from another state (may also use Form

PR-78SSTA).

A wholesale company that only occasionally makes retail

sales must still register to collect sales tax. To simplify sales

tax reporting in this situation, it is suggested that a separate

retail division be established within the organization from

which all retail sales are made.

Sharon Jones purchases the inventory for

her clothing store without tax using a Resale

Exemption Certificate. When she takes a

blouse out of inventory for a gift and a suit

for herself, she reports her cost in these items ($70.00)

under Merchandise Consumed (line 2) of her sales tax

filing. The amount becomes a part of the net sales total on

which sales tax is due.

PAYING TAX ON PERSONAL USE OF INVENTORY

All of the exemption certificates in this booklet have this

statement above the buyer’s signature:

“The undersigned purchaser understands and agrees that

if the property or services are used other than as stated

above or for any other purpose that is not exempt from sales

or compensating tax, the undersigned purchaser becomes

liable for the tax.”

When you remove merchandise from your inventory to

use personally or as a gift, you become the final consumer

or user of the item(s) and must pay sales tax. The sales tax

is based upon your cost for the item, not its retail price.

To report and pay the tax on tax exempt inventory used

for a taxable purpose, use the line or column of your sales

tax filing entitled Merchandise Consumed. Retailer/

contractors will also use this line or column to report the

cost of materials removed from a tax exempt inventory for

use on a contract job.

WHEN IN DOUBT ...

When there is a question that is not answered in this

booklet, contact the Kansas Department of Revenue. DO

NOT GUESS. Clarification of whether a sale is taxable or

exempt will save you time in dealing with the issue in the

future and could also save you money by avoiding costly

sales tax deficiencies.

Many questions can be answered by the customer

representatives in our office, or by consulting the Kansas

Department of Revenue’s Policy Information Library on our

website. However, there are unique situations that may require

an interpretation or clarification based upon the law,

regulations, and specific facts of the case. When this

happens, document the problem or question in writing and

request a Private Letter Ruling or an Opinion Letter from the

Kansas Department of Revenue. Mail or fax your request to:

Office of Policy and Research

Kansas Department of Revenue

915 SW Harrison St., Room 230

Topeka, KS 66612-1588

Fax: 785-296-7928

You will receive a written ruling within 30 days after

your request (and any additional information necessary

for the ruling) is received.

IMPORTANT: Although they are published in our

Policy Information Library, Opinion Letters and

Private Letter Rulings are limited ONLY to the requesting

taxpayer and that taxpayer’s specific factual situation. They

cannot be relied upon or cited by any other person.

Policy Information Library

As a service to taxpayers our website contains a

library of policy information for all taxes administered by

the Kansas Department of Revenue. This policy library

contains the Kansas Statutes and Regulations, Revenue

Notices, Revenue Rulings and other written advice issued

by the Kansas Department of Revenue. Opinion Letters

and Private Letter Rulings are also included, but are

“scrubbed” to protect the privacy of the taxpayer — any

information that would identify the taxpayer, such as name,

address, product, etc., is blanked out.

Key Statutes and Regulations

The information in this guide is based on these statutes

and regulations and others cited are in the text. They are a

part of the policy library on our website.

K.S.A. 79-3602 – Sales tax definitions

K.S.A. 79-3603 – Taxing statute

K.S.A. 79-3606 – Exempting statute

K.S.A. 79-3651 – Exemption certificates

K.A.R. 92-19-25b – Exemption certificates

K.A.R. 92-19-66e – Project Exemption certificates

RELATED TOPICS

AUDIT ISSUES

Your sales tax records, including exemption certificates,

are subject to audit by the Kansas Department of Revenue.

If your exemption certificates are found to be missing or

incomplete during an audit, you have only 120 days from

notice by the Director of Taxation to obtain completed

exemption certificates for these sales. [K.S.A. 79-3609(a)].

Since our audits usually cover a three-year period, this

task can be very time-consuming. If you cannot locate the

customer or the customer refuses to comply, you may

become liable for the sales or use tax due on that sale,

plus penalty and interest.

Avoiding Common Errors. Here are some of the

most common exemption certificate errors we find

during an audit with tips on how to correct or avoid

making these mistakes.

An exemption certificate is incomplete.

Completing every blank on the certificate designed for

that exemption will help to avoid most errors. All exemption

certificates must have the name of the seller, the name

and address of the purchaser, the reason it is exempt, and

be signed and dated by the purchaser.

The resale, retailer/contractor, tire excise, and dry

cleaning exemption certificates must also show a Kansas

tax registration number for that tax type. Exemption

certificates for nonprofit organizations require the exempt

entity’s tax identification number.

A resale exemption certificate was accepted that

does not show a Kansas sales tax registration

number.

A resale exemption certificate that is missing the

purchaser’s Kansas registration number is incomplete and,

therefore, not acceptable. Furthermore, a retailer cannot

accept an exemption certificate from a purchaser who does

not provide a Kansas sales tax registration number except

when the out-of-state purchaser for resale is having the

item drop shipped to a customer in Kansas. Wholesalers

and out-of-state retailers should use the Multi-Jurisdiction

Exemption Certificate (ST-28M) or Form PR-78SSTA, when

buying their resale inventory in Kansas.

Tax-free sales are made to a buyer that provides

only a Kansas sales tax number.

A retailer cannot exempt a sale from tax simply because

the customer provides a Kansas sales tax number or a

copy of a certificate of registration. A completed resale

exemption certificate (or Form PR-78SSTA) must also be

obtained. See Resale Exemption Certificate Requirements

on page 4.

A retailer fails to remit sales tax to the state

because the customer crossed the tax off the

bill without providing a completed exemption

certificate.

A retailer is still responsible for obtaining an exemption

certificate even when the customer refuses to pay the tax.

In the absence of a completed exemption certificate, the

sale is taxable, and the sales tax is due.

Failure of contractors to pay tax on materials

used in a project for an exempt entity (such as a

school, nonprofit hospital, religious organization,

the federal government) that did not obtain a PEC.

A contractor is responsible for paying the sales tax on

all materials used in performing labor services, unless

working under a PEC-issued by the Kansas Department

of Revenue or its authorized agents (see pages 10-11).

When the exempt entity has not obtained a project

exemption number, materials purchased or furnished by

its contractor(s) are taxable.

LOCAL SALES TAX

Each Kansas county or city has the authority to levy a

local sales tax. When levied, a local sales tax rate is added

to the statewide sales tax. The resulting total is collected

from the consumer and then sent by the retailer to the

Kansas Department of Revenue. Unless otherwise noted,

a sales tax exemption exempts the sale from the state, city,

county and special taxing district sales taxes. A list of all

the combined state and local tax rates, Sales Tax Jurisdiction

Code Booklet (Pub. KS-1700) can be found on our website.

OUT OF STATE SALES

Kansas sales tax law applies only within the boundaries

of Kansas. When goods or merchandise are shipped or

delivered outside of Kansas (and not returned to a point in

Kansas), Kansas sales tax is not due. Out-of-state delivery

may be made by the seller, a common carrier, or through

the mail.

Since these sales are a deduction on your sales tax

return like an exempt sale, your books and records must

show the merchandise was delivered outside Kansas.

Acceptable proof of an out-of-state sale is a:

• Waybill or bill of lading, showing delivery to another

state,

• Post office, insurance, or registry receipt,

• Trip sheet signed by the seller’s delivery agent,

showing the address and signature of the person

outside Kansas who received the merchandise.

When goods or merchandise are delivered to a buyer

in Kansas, Kansas sales tax is due even though the buyer

may later transport the property out of Kansas. See page

4 for a discussion of drop shipments.

NOTE: If you have established a physical presence or “nexus” in

another state, you may be required to register for that state’s sales

or use tax. See What is Nexus? herein.

COMPENSATING USE TAXES

Sales tax exemption certificates may also be used to

claim exemption from compensating use tax. This use tax

applies to purchases of goods from businesses in other

states and its purpose is to protect Kansas businesses

from unfair competition from businesses in other states

that may not charge tax. The use tax rate is the same as

the state and local sales tax rate in effect where the item is

used, stored or consumed. There are two types of use

tax: Consumers’ Compensating Use Tax and Retailers’

Compensating Use Tax.

Consumers’ Compensating Use Tax

Consumers’ Compensating Use Tax is due when goods

or merchandise are purchased outside Kansas for use,

storage, or consumption (not resale) in Kansas, and a

sales tax equal to the state and local sales tax rate in effect

where the item is used, stored or consumed, has not been

paid. The tax applies whether the item is shipped into

Kansas or purchased outside of Kansas and brought back

into Kansas. For Kansas businesses, use tax is due when

equipment, fixtures and supplies are purchased from

another state without tax. An alphabetical listing of all

combined state and local tax rates, see our Sales Tax

Jurisdiction Code Booklet (Pub. KS-1700) for an

alphabetical listing of all combined state and local tax rates.

Tax rates for specific addresses may be found in the online

tax rate locator. Both can be found on our website.

A Topeka Kansas hotel needs to replace its

worn out linens and room furniture. The hotel

buys them from a Texas company; sales tax

is not charged on the invoice. This hotel will

owe the compensating use tax rate in effect where the

hotel is located (Topeka) on the total delivered price

(including shipping, handling, freight or delivery charges)

of the linens and furniture.

Retailers’ Compensating Use Tax

Out-of-state retailers collect this use tax on merchandise

they deliver or ship to their Kansas customers. Retailers in

other states are required to register and collect the Kansas

Retailers’ Compensating Use Tax from their Kansas

customers if they have a physical presence in Kansas or

have established “nexus.”

What is Nexus?

Nexus is defined as a “means of connection” or a “link;”

it means you have a business presence for tax purposes.

What constitutes nexus varies from situation to situation.

Some of the ways that a business may establish nexus in

Kansas are listed below.

• Kansas business location, including an office.

• The presence in Kansas of sales or service

representatives.

• Operation of mobile stores in Kansas (example:

trucks with driver salespersons).

• Stocking inventory in a Kansas warehouse or on

consignment.

• Providing tangible personal property for lease or

rental in Kansas.

• Delivering merchandise to Kansas customers using

company vehicles or contract carriers, rather than

interstate common carriers.

• Providing or contracting for installation, repair,

construction, or other services in Kansas.

(Maintenance contracts require a Kansas retailers’

sales tax registration).

If you are a retailer in another state, and any of the

above describes your business activity in Kansas or the

activities of your agents, you are required to register and

collect the appropriate tetailers’ dales or compensating use

tax from your Kansas customers.

A Kansas resident orders a personal

computer from an Illinois retailer, which is

shipped to him from its warehouse in St.

Louis. The Illinois retailer also maintains a

retail outlet in Kansas. This out-of-state retailer is required

to collect and remit Kansas retailers’ compensating use

tax on this sale.

A Kansas resident orders furniture from a

Nebraska retailer. The retailer delivers the

furniture to her home in Kansas using its own

delivery vehicle. This Nebraska retailer is

required to register with the Kansas Department of

Revenue to collect Kansas Retailers’ Compensating Use

tax, since the delivery of the furniture into Kansas with a

company vehicle has established nexus.

Similarly, a Kansas retailer may establish “nexus” in

another state in these same ways. If any of the nexus

activities listed on the previous page describe your business

activity in another state, you should contact that state to

those states. If you fail to register in those states, you may

become liable for the taxes that were not collected.

Additional information about Kansas use taxes, including

sample completed returns for individuals and businesses

is in our Publication KS-1510, Kansas Sales and

Compensating Use Tax. All retailers operating in Kansas

should obtain a copy of this publication — available on our

website.

USING EXEMPTION

CERTIFICATES

On the pages that follow, in alphabetical order, are the

exemption certificates currently provided by the Kansas

Department of Revenue for the specific exemptions in

Kansas sales tax law. The certificates are designed to be

reproduced directly from this book or, if you prefer, you

may download them from our website.

BEFORE ACCEPTING ANY CERTIFICATE, carefully

read the exemption statement and the accompanying

explanation and instructions. Most certificates contain a

restatement of the Kansas law (K.S.A. — Kansas Statutes

Annotated), or regulation (K.A.R. — Kansas Administrative

Regulations) that established the exemption.

IMPORTANT: If your customer or the purchase

does not fit the definition or the exempt examples

given in the certificate, the sale is most likely not exempt.

COMPLETING THE CERTIFICATE

Follow these three guidelines when completing any

exemption certificate.

1) Print or type all information, except for the

authorized signature.

The information on the certificate must be legible

both to you and to our auditors. Do not print a

signature, although it is often helpful to print or type

the name below the signature.

2) Fill in all the blanks.

A certificate is complete only when all the requested

information is provided. Addresses must include the

street or PO box, city, state, and zip code. An

exemption certificate is also not complete unless the

customer supplies the appropriate tax account

numbers required by the certificate. On the resale

exemption certificate, the seller may request a copy

of the buyer’s sales tax certificate of registration.

3) Give specific descriptions.

Be as precise as possible when describing the

property or services purchased. You may use an

itemized list, refer to an itemized invoice number, or

at the very least provide a general description of the

items. When describing a business activity, include

the principal product(s) sold or manufactured.

PENALTIES FOR MISUSE

A buyer who issues an exemption certificate in order to

unlawfully avoid payment of the sales tax for business or

personal gain is guilty of a misdemeanor, and upon

conviction may be fined up to $1,000 or imprisoned for up

to a year, or both. When a buyer is found to have used a

Resale Exemption Certificate to avoid payment of the tax,

the director may also increase any penalty due on the tax

by $250 or 10 times the tax due, whichever is greater, for

each transaction where the misuse of a resale exemption

certificate occurred. [K.S.A. 79-3651(g)]

____________________________________________________________________________________________________

Kansas Department of Revenue

Sales and Use Tax Entity Exemption Certificate

The Kansas Department of Revenue certifies this entity is exempt from paying Kansas sales and/or compensating use tax as stated below.

Kansas Exemption Number: <Cert_Number> Expiration Date: <Expire_Dt>

The tax-exempt entity understands and agrees that if the tangible personal property and/or service are used other than as stated, or for any purpose

that is not exempt from the tax, the tax exempt entity is liable for the state and local sales or use tax. The unlawful or unauthorized use of this

certificate is expressly prohibited, punishable by fine and/or imprisonment. The certificate is issued for the sole use of the exempt entity as named.

<Pet_Auth_Name>

<City_St_Zip>

EXEMPT ENTITY INFORMATION:

Authorization and scope:

• K.S.A 79-3606(c) & (d) - Public or Private Elementary or Secondary Schools or Nonprofit Educational Institutions.

• Exemption applies to all direct purchase, rental or lease of tangible personal property and services, except purchases of goods for human

habitation and indirect purchases by a contractor for a real property project.

Limitations:

• Only direct purchases are exempt through the use of this certificate.

• This entity qualifies for exemption on indirect purchases by a contractor through the issuance of a Project Exemption Certificate (PEC). PECs

should be obtained from the department prior to the start of the project. Apply on-line at KDOR’s web site: www.ksrevenue.org

• This exemption does not apply to the purchase of any construction machinery, equipment or tools used in the constructing, maintaining,

repairing, enlarging, furnishing or remodeling facilities for the exempt entity.

• Subject to sales tax are purchases of capital goods used for human habitation (i.e. residential housing and dormitories) to include materials for

construction, remodeling or repair and furnishings such as beds, curtains, desks and furniture. Labor services on dormitories are exempt as

residential construction.

______________________________________________________ _______________________

Exempt Entity Authorized Signature (Officer, Office Manager or Administrator) Federal ID Number

________________________________________________________________ _______________________

Printed Name Date

RETAILER INFORMATION:

• To qualify for exemption, the certificate must have an expiration date in the future and be signed by an authorized individual.

• Payment must be made by the entity on their checking account or on a credit/debit card issued to the entity. Acceptance of cash, personal checks,

or personal credit/debit cards is not allowed for a tax exempt purchase.

• The entity must have a Kansas exemption certificate. Exemption certificates issued by other states are not valid in Kansas.

• Retailers are required to maintain a copy of the purchaser’s certificate in their records for at least 3 years from the date of purchase. Retailers

must maintain a current certificate on file.

• Selling tax exempt goods or services that are not exempt by statute may result in the assessment of tax.

• A completed certificate may be used as a blanket exemption for future purchases when of the same type and for the same exempt purpose.

Seller’s name and address

Description of goods and/or services purchased

For additional information on Kansas sales and use taxes see Publication KS-1510, Kansas Sales Tax and Compensating Use Tax and Publication

KS-1520, Kansas Exemption Certificates, located at: www.ksrevenue.org Questions would be directed to Taxpayer Assistance at 785-368-8222.

PR-78ED

(07/09)

The following entities and organizations are now authorized to receive a Tax-Exempt Entity Exemption Certificate from he

Kansas Department of Revenue. (See sample on previous page.)

State of Kansas and its agencies

Kansas political subdivisions – cities, counties, townships school

districts

Nonprofit hospitals

Nonprofit blood, tissue and organ banks

Nonprofit educational institutions (colleges, universities, trade

schools, etc. providing education above grade 12)

Elementary and secondary schools

Kansas groundwater management districts

Rural water districts and water supply districts

Port authority

Nonprofit nursing home, assisted living facility, interim care home

Nonprofit, nonsectarian, comprehensive youth development

organizations

Community-based mental retardation facilities or mental health

centers

Nonprofit public health corporations

Community action groups/agencies for weatherization of

low-income homes

Nonprofit museums

Nonprofit historical societies

Nonprofit zoos

Public broadcasting stations (radio and TV)

Nonprofit organizations building Kansas Korean War Memorials

Parent-Teacher Associations and Organizations

Contractors preparing meals for the homebound elderly, disabled,

indigent or homeless (i.e., Meals on Wheels)

Rural volunteer fire fighting organizations

Kansas chapters of these Organizations:

American Heart Association

Kansas Mental Illness Awareness Council

American Diabetes Association, Kansas Affiliate

American Lung Association

Kansas Alliance for the Mentally Ill

Alzheimer’s Disease and Related Disorders Association, Inc.

Parkinson’s Disease association

National Kidney Foundation (of KS and Western MO)

Heartstrings Community Foundation (effective 1/1/2005)

The Cystic Fibrosis Foundation, Heart of America Chapter

(effective 1/1/2005)

Spina Bifida Association (effective 1/1/2005)

CHWC, Inc. (effective 7/1/2006)

Cross-lines Cooperative Council (effective 7/1/2006)

Dreams Work, Inc. (effective 7/1/2006)

KSDS, Inc. (effective 7/1/2006)

Lyme Association of Greater Kansas City, Inc.

(effective 7/1/2006)

Dream Factory, Inc. (effective 7/1/2007)

Ottawa Suzuki Strings, Inc. (effective 7/1/2007)

International Association of Lions Clubs (effective 7/1/2007)

Johnson County Young Matrons, Inc. (effective 7/1/2007)

American Cancer Society, Inc. (effective 7/1/2007)

Community Services of Shawnee, Inc. (effective 7/1/2007)

Angel Babies Association (effective 7/1/2007)

Habitat for Humanity for housing project materials

Free-Access Radio and TV Stations

Religious Organizations

Primary care clinics and health centers serving the medically

underserved

Kansas Academy of Science

Domestic violence shelters that are members of the Kansas

Coalition against Sexual and Domestic Violence (KCSDV),

(effective 1/1/2005)

Kansas Bioscience Authority (effective 7/1/2004)

Special Olympics Kansas, Inc. (effective 7/1/2006)

Marillac Center, Inc. - purchases of tangible personal property

only (effective 7/1/2006)

West Sedgwick County - Sunrise Rotary Club and Sunrise

Charitable Fund (effective 7/1/2006)

County Law Libraries (effective 7/1/2006)

501(c)(3) Homeless Shelters (effective 7/1/2006)

Jazz In The Woods, Inc. (effective 7/1/2007)

Frontenac Education Foundation (effective 7/1/2007)

Rotary Club of Shawnee Foundation (effective 7/1/2007)

Victory In The Valley, Inc. (effective 7/1/2007)

Booth Theatre Foundation, Inc. (effective 7/1/2007)

TLC Charities Foundation, Inc. (effective 7/1/2007)

Wayside Waifs (effective July 1, 2008)

Goodwill Industries Easter Seals of Kansas (effective May 28, 2009)

Goodwill Industries of Kansas, Inc. (effective May 28, 2009)

All American Beef Battalion, Inc. (effective May 28, 2009)

Kansas Fairgrounds Foundation (effective May 28, 2009)

Sheltered Living, Inc. (effective May 28, 2009)

Wichita Children’s Home (including PEC - effective July 1, 2014)

Beacon, Inc. (effective July 1, 2014)

Reaching Out from Within, Inc. (July 1, 2014)

KANSAS DEPARTMENT OF REVENUE

AGRICULTURAL EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property or service purchased from:

Seller:

__________________________________________________________________________________________________

Business Name

Address: __________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

is exempt from Kansas sales and compensating use tax for the following reason:

 Ingredient or component part  Consumed in production  Propane for agricultural use



The property purchased is farm or aquaculture machinery or equipment, repair or replacement parts, or labor services on

farm or aquaculture machinery or equipment which will be used exclusively in farming, ranching, or aquaculture.



Seeds and tree seedlings; fertilizers, insecticides, herbicides, germicides, pesticides, fungicides; and services, purchased

and used for the purpose of producing plants in order to prevent soil erosion on land devoted to agricultural use.

Description of tangible personal property or services purchased: ______________________________________

_________________________________________________________________________________________

The undersigned understands and agrees that if the tangible personal property or services are used other than as stated above or

for any other purpose that is not exempt from sales or compensating tax, the undersigned purchaser becomes liable for the tax.

Purchaser:

_________________________________________________________________________________________________

Business Name

Address: __________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

Authorized Signature: ____________________________________________________________ Date: _____________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS CERTIFICATE? Farmers, ranchers, feedlots, fisheries, grass farms, nurseries, Christmas tree farms, custom cutters,

crop dusters, and others engaged in farming, ranching, aquaculture, or farm and ranch work for hire are entitled to this exemption.

WHAT PURCHASES ARE EXEMPT? This certificate contains five separate exemptions. Examples of items or uses that are exempt, and

those that are taxable are given for each exemption. In addition to meeting the definition for an “ingredient or component part” or the “consumed

in production” exemption, items purchased with this certificate must be used

exclusively in agriculture or aquaculture to produce a product for

resale — food, fiber, fur, or offspring for such purposes.

RETAINING THIS CERTIFICATE: Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

INGREDIENT OR COMPONENT PART:

EXEMPT: Wheat, corn, milo, soybean, and sunflower seed used to produce these crops; feed for

beef or dairy cattle, sheep and hogs, ground grain for chickens in a poultry or egg-laying operation; food for aquatic plants and animals

(fish); baler twine, baler wire and bale wrap used on hay that will be resold or used in the farmer or rancher’s own livestock production

operation.

TAXABLE: Bedding plants and seeds for a home garden; or food for pets and pleasure animals.

CONSUMED IN PRODUCTION: EXEMPT: Insecticides, herbicides, fungicides, fumigants, germicides, pesticides, and other such chemicals

used on growing agricultural crops for resale or used in the processing or storage of fruit, vegetables, feeds, seeds, and grains; antibiotics,

biologicals, pharmaceuticals, vitamins, minerals, and like products which are fed, injected, or otherwise applied to livestock for resale; off-road

diesel fuel, oil, and oil additives consumed by farm tractors and combines; LP gas for agricultural use. TAXABLE: Insecticides and the like

purchased for use in a home garden; antibiotics, vitamins, etc. purchased for pets or pleasure animals; fuels, oils, for cars, trucks, and ATVs.

PROPANE FOR AGRICULTURAL USE:

EXEMPT: Propane used to operate farm machinery. TAXABLE: Propane for non-agricultural use,

including for barbecue grills, campers, RV equipment and vehicles licensed to operate on public highways.

FARM OR AQUACULTURE MACHINERY AND EQUIPMENT: To qualify, the machinery or equipment must be used ONLY in farming,

ranching, the operation of the feedlot or nursery, farm or ranch work for hire, or aquaculture. The exemption applies to the rental or purchase

of farm or aquaculture machinery and equipment, as well as the parts and labor purchased to repair or maintain the farm or aquaculture

machinery and equipment.

EXEMPT: Combines, discs, farm tractors, harrows, hay balers, irrigation and milking equipment, planters, plows,

tillers, and work-site utility vehicles (see NOTICE 06-02). TAXABLE: Air compressors and tanks, all terrain vehicles (ATVs), automobiles and

trucks, barn ventilators, building and electrical materials, bulldozers, fencing materials and tools, garden hoses, grain bins, hand tools,

lawnmowers, silos, water and gas wells, welding equipment, and any equipment that becomes a part of a building, facility, or land improvement.

SEEDS AND TREE SEEDLINGS: All components of a shelter belt or wind break planted on agricultural land are exempt from sales tax.

This includes the trees, fertilizers, pest control chemicals, moisture/weed barrier and staples, and above ground irrigation equipment.

Furthermore, all services related to the planting or caring of the trees planted on agricultural land are exempt from sales tax.

Note: See Publication KS-1550, Kansas Sales & Use Tax for the Agricultural Industry, at www.ksrevenue.org for additional information.

ST-28F (Rev. 8-14)

KANSAS DEPARTMENT OF REVENUE

AIRCRAFT EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property or service purchased from:

Seller: _________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

is exempt from Kansas sales and compensating use tax for the following reason:

K.S.A. 79-3606(g)exempts all sales of aircraft including remanufactured and modified aircraft sold to persons using

directly or through an authorized agent such aircraft as certified or licensed carriers of persons or property in

interstate or foreign commerce under authority of the laws of the United States or any foreign government or sold to

any foreign government or agency or instrumentality of such foreign government and all sales of aircraft, for use

outside of the United States and sales of aircraft repair, modification and replacement parts and sales of services

employed in the remanufacture, modification and repair of aircraft.

Description of tangible personal property or services purchased: ___________________________________

__________________________________________________________________________________________

Tail Number of Aircraft: _______________________________________________________________________

The undersigned understands and agrees that if the property or services are used other than as stated above or for any other

purpose that is not exempt from sales or compensating tax, the undersigned purchaser becomes liable for the tax.

Purchaser: _________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P. O. Box City State

Authorized Signature: _____________________________________________________

ZIP + 4

Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS EXEMPTION?

The U.S. government and any of its agencies, foreign governments and their agencies, domestic airlines, foreign airlines, and charter

companies qualify for this exemption. Persons licensed in interstate commerce (such as those licensed under a FAA part 135, air taxi

certificate) also qualify for this exemption. A licensed or certified carrier of persons or property engaged in interstate or foreign commerce is

exempt even though the aircraft never leaves Kansas (all flights are intrastate). The exemption also applies to sales made through an

authorized agent of the air carrier for the eventual use in interstate or foreign commerce. Effective January 1, 2005 sales of aircraft repair,

modification and replacement parts and sales of services employed in the remanufacture, modification and repair of all aircraft are exempt

from Kansas retailers’ sales and compensating use taxes.

WHAT PURCHASES ARE EXEMPT?

A purchaser meeting the above definitions may purchase new, used, rebuilt or modified aircraft, all repair or replacement parts, and the labor

services to build, modify or repair any aircraft exempt from sales tax. In other words, a qualified purchaser may have a plane built,

remanufactured, modified or repaired in Kansas, and all aspects of the sale are exempt from sales tax with this exemption certificate.

Aircraft, repair parts and labor, and oil and gas are also exempt when the aircraft is used exclusively for resale, rental, or leasing purposes.

WHAT SALES ARE TAXABLE?

Persons and businesses whose aircraft is used for personal, company, recreational, or instructional purposes are NOT exempt and cannot

use this exemption certificate to purchase aircraft. The January 1, 2005 amendment exempts only the repair parts and services. Purchas-

ers must pay sales tax on the purchase price of aircraft. Those not licensed in interstate or foreign commerce are considered to be the final

consumer of the aircraft and must pay sales tax when buying the aircraft and on purchases of aviation fuel and oil.

RETAINING THIS CERTIFICATE

Sellers should retain a completed copy of this certificate in their records for at least three years from the date of sale. A seller is relieved of

liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has a recurring business relationship.

A certificate need not be renewed or updated when there is a recurring business relationship between the buyer and seller. A recurring

business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28L (Rev. 7-08)

KANSAS DEPARTMENT OF REVENUE

AVIATION FUEL EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the aviation fuel purchased from:

Seller

Name of Kansas Aviation Fuel Retailer/Fixed Base Operator

is exempt from Kansas sales and compensating use tax pursuant to (check applicable box):

K.S.A. 79-3606(f), which exempts sales of aviation fuels to common carrier aircraft qualifying as a public utility,

when the av

iation fuel is for consumption immediately and directly in interstate commerce.

The under

signed purchaser certifies that the purchaser is a common carrier certified and operating under authority of

Part 121 or Part 135 of the applicable F.A.A. regulations and such aviation fuel will be consumed in common carrier

operations conducted in interstate commerce.

K.S.A. 79-3606(n), which exempts all sales of aviation fuel consumed in the production or treatment of crops for

ultimate sale at retail.

The undersigned purchaser understands and agrees that if the property is used other than as stated above or for any

other purpose that is not exempt from sales or compensating tax, the undersigned purchaser becomes liable for the tax.

Purchaser:

Name of Certificated Aircraft Operator

Address:

Street, RR, or P. O. Box City State

ZIP + 4

Address:

Street, RR, or P. O. Box City State

ZIP + 4

Signature: Date

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS CERTIFICATE? Persons licensed as common carriers operating in interstate commerce (those

licensed under FAA regulations parts 121 or 135) qualify for this exemption, pursuant to K.A.R. 92-19-28(c). Crop dusters

consuming aviation fuel for crop dusting operations used in the production or treatment of crops may also use this

certificate.

WHO DOES NOT QUALIFY FOR THIS EXEMPTION? Contract carriers that are not for hire to the general public. They

are not common carriers and not exempt from sales tax on fuel purchases. Also not exempt are common carriers that

are intrastate carriers (operating only within this state and not interstate).

RETAINING THIS CERTIFICATE: Sellers should retain a completed copy of this certificate in their records for at least

three years from the date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate

from a purchaser with which the seller has a recurring business relationship. A certificate need not be renewed or

updated when there is a recurring business relationship between the buyer and seller. A recurring business relationship

exists when a period of no more than 12 months elapses between sales transactions.

ST-28LA (10/14)

KANSAS DEPARTMENT OF REVENUE

CONSUMED IN PRODUCTION EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property or service purchased from:

Seller: __________________________________________________________________________________________________

Business Name

Address: __________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

is exempt from Kansas sales and compensating use tax for the following reason:

K.S.A. 79-3606(n) exempts all sales of tangible personal property consumed in the production, manufacture, processing,

mining, drilling, refining or compounding of tangible personal property, the treatment of waste or by-products derived

from any such production process, the providing of services, or the irrigation of crops for ultimate sale at retail within

or without the state of Kansas.

Description of tangible personal property or services purchased: ___________________________________

__________________________________________________________________________________________

The undersigned understands and agrees that if the tangible personal property or services are used other than as stated above or

for any other purpose that is not exempt from sales or compensating tax, the undersigned purchaser is liable for the tax.

Purchaser: _________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

Authorized Signature: _____________________________________________________ Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS EXEMPTION? Any business buying goods or merchandise that qualifies as “property which is consumed” will use this

certificate. Whether the item qualifies for exemption is determined by how the item is used in production or processing. An item may be

taxable for one use and exempt for another use, even though purchased by the same consumer. Each item and its use must be separately

measured against the definition to determine if the sale is taxable or exempt.

WHAT IS “PROPERTY WHICH IS CONSUMED?” To be exempt, the item must be essential and necessary to the process, used in the

actual process, not reusable and be consumed, depleted or dissipated within one year. The fact that property may be used for only one

production or processing activity and then discarded, or that it becomes obsolete or worthless in a short time is not the determining factor.

Items that break, depreciate, wear out or become obsolete, even in a very short time, may not qualify to be exempt as “consumed in

production.” Included as a process qualifying for the exemption is the storage or processing of grain by a public grain warehouse or other

grain storage facility.

EXAMPLES: The following are exempt as “property which is consumed” when used in these industries or applications.

• Liquid oxygen used in the production of fiberglass.

• Diesel fuel and oil, drilling fluids, and chemicals (such as acid and drilling mud) that are consumed in drilling wells.

• Coal used to generate electricity.

• Graphite, E.D.M. oil, and abrasives consumed in manufacturing die impressions, forge dies and forgings.

• Refrigerant used in the production of aircraft.

PROVIDING OF SERVICES: The term “service” in the law above refers only to TAXABLE services. Businesses providing services that are

not taxable (such as accountants, doctors, lawyers, architects, etc.) must pay sales tax on items purchased for their business, and may not

claim any exemption from sales tax.

CONTRACTORS: This certificate may NOT be used by contractors to purchase their materials. All materials and parts purchased by contractors,

subcontractors, and repairmen to be incorporated into any structure or consumed in altering, servicing, repairing, or maintaining personal

property (or personal property that has been attached to real property) are TAXABLE unless a Project Exemption Certificate has been furnished

to the contractor by the customer.

RETAINING THIS CERTIFICATE: Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28C (Rev. 7-08)

KANSAS DEPARTMENT OF REVENUE

DESIGNATED OR GENERIC EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property or service purchased from:

Seller: ___________________________________________________________________________________________________

Business Name

Business Address: ________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP + 4

is exempt from Kansas sales and compensating use tax under K.S.A. 79-3606. The undersigned understands and agrees

that if the tangible personal property or services are used other than as stated in its statutory exemption, or are used for any

other purpose that is not exempt from sales or compensating use tax, the undersigned purchaser becomes liable for the tax.

The unlawful or unauthorized use of this certificate is expressly prohibited, punishable by fine and/or imprisonment.

This certificate shall apply to (check one):



Single Purchase Certificate. Enter the invoice or purchase order #: _______________________________________



Blanket Certificate.

Name of Purchaser: _______________________________________________________________________________

Purchaser’s EIN: __________________________________________ Foreign Diplomat Number _________________

Business Address: _________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP + 4

Reason for Exemption. Check the appropriate box for the exemption. Since this is a multi-entity form, not all entities are

exempt on all purchases. Only those entities that do not have a Kansas Tax-Exempt Entity Exemption Number may use this

certificate to claim an exemption. Kansas-based tax-exempt entities are required to have a Kansas Tax Exempt Entity Exemption

Number; non-Kansas tax-exempt entities who regularly do business in Kansas are encouraged to apply for a Kansas Tax-

Exempt Entity Exemption Number through our website at www.ksrevenue.org. Tax exempt entities who have been assigned a

Kansas Exemption Number (Kansas and non-Kansas based) must use their numbered Tax-Exempt Entity Exemption Certificate

(Form PR-78) issued by the Kansas Department of Revenue to claim their exemption; they cannot use this certificate.



Drill bits & explosives actually used in oil and gas exploration

and production, K.S.A. 79-3606(pp).



Educational materials purchased for free public distribution

by a nonprofit corporation organized to encourage, foster, and

conduct programs for the improvement of public health, K.S.A.

79-3606(ll).



Materials purchased by community action groups or agencies

to repair or weatherize housing occupied by low income

individuals, K.S.A. 79-3606(oo).



Medical supplies and equipment purchased by a nonprofit

skilled nursing home or intermediate nursing care home,

K.S.A. 79-3606(hh).



Qualified machinery and equipment purchased by an over-

the-air free access radio or TV Station, K.S.A. 79-3606(zz).



Seeds, tree seedlings, fertilizers and other chemicals, and

services used to grow plants to prevent soil erosion on

agricultural land, K.S.A. 79-3606(mm).



Foreign Diplomat.



Newly Legislated Exemption. Briefly describe the exemption

and enter the statute reference or enter the year and number

of the Bill authorizing the exemption. _________________

_____________________________________________



Community-based mental retardation facility or mental health

center, K.S.A. 79-3606(jj).



Elementary or secondary school (public, private or parochial),

K.S.A. 79-3606(c).



Habitat for Humanity, K.S.A. 79-3606(ww).



Noncommercial educational TV or radio station, K.S.A.

79-3606(ss).



Nonprofit blood, tissue or organ bank, K.S.A. 79-3606(b).



Nonprofit public or private educational institution, K.S.A.

79-3606(c).



Nonprofit hospital or public hospital authority, K.S.A.

79-3606(b).

 Nonprofit museum or historical society, K.S.A. 79-3606(qq).



Nonprofit, nonsectarian youth development organization,

K.S.A. 79-3606(ii).



Nonprofit religious organization, K.S.A. 79-3606(aaa).



Nonprofit zoo, K.S.A. 79-3606(xx).



Parent-Teacher Association or Organization, K.S.A.

79-3606(yy).



Primary care clinics and health centers serving the medically

underserved, K.S.A. 79-3606(ccc).



Rural volunteer fire fighting organization, K.S.A.

79-3606(uu).

Authorized Signature: ____________________________________

Officer, Office Manager or Administrator

Employer ID Number (EIN): __________________

Printed Name: __________________________________________ Date: ___________________________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

PLEASE REFER TO THE INSTRUCTIONS FOR USE OF THIS CERTIFICATE ON THE REVERSE.

ST-28 (Rev. 7-08)

ABOUT THE DESIGNATED EXEMPTION CERTIFICATE, FORM ST-28

IMPORTANT: This is a multi-entity form; not all entities are exempt on all purchases.

WHO MAY USE THIS CERTIFICATE

This exemption certificate is used either to claim a sales and

use tax-exemption present in Kansas law not covered by other

certificates, or by a non-Kansas tax-exempt entity not in possession

of a Kansas Tax-Exempt Entity Exemption Certificate, Forms PR-

78, discussed below.

FOREIGN DIPLOMATS. Foreign diplomats must provide their foreign

diplomat number issued by the Office of Foreign Missions of the U.

S. State Department on this exemption certificate. Additional

information about this exemption is in our Notice 04-09 on our

website.

Buyers claiming exemption based on how the item will be used

(Resale, Retailer/Contractor, Ingredient or Component Part,

Agricultural, etc.) must use the specific certificate (form type

ST-28) designed for each of those exempt uses under the law.

The U.S. Government, its agencies and instrumentalities must also

continue to use Form ST-28G designed for their exemption.

AX-EXEMPT ENTITY EXEMPTION CERTIFICATES (FORMS PR-78)

To assist retailers in identifying the nonprofit entities exempt from

paying Kansas sales and use tax, the Kansas Department of

Revenue has issued Tax-Exempt Entity Exemption Certificates

effective January 1, 2005. Issued first to Kansas-based entities,

these are individual, uniquely numbered exemption certificates

issued only by the department. Each certificate contains the entity’s

name and address, the statute cite of the exemption and the entity’s

Kansas Exemption Number. This number is separate and apart

from any sales tax registration number used to collect tax from

their customers. To claim its exemption, the registered exempt entity

must merely provide a completed, signed copy of its PR-78 to the

retailer. Tax exempt entities who have been assigned a Kansas

Exemption Number (Kansas and non-Kansas based) may NOT

use the Designated or Generic Exemption Certificate (Form

ST-28) to claim exemption.

Kansas-based tax-exempt entities are required to obtain a

Kansas Tax-Exempt Entity Exemption Number. Tax-exempt

entities (schools, nonprofit hospitals, etc.) from other states who

regularly do business in Kansas are encouraged to obtain a

Kansas Tax-Exempt Entity Exemption Certificate from the Kansas

Department of Revenue. To obtain a uniquely numbered certificate,

complete the application on our website at www.ksrevenue.org.

GENERAL EXEMPTION RULES

Complete all parts of the form. An exemption certificate is

complete only when all the requested information is provided.

Please print or type all information, except for the authorized

signature. Addresses must include the street or PO Box, city, state

and zip code.

Direct Purchase. Generally, an exemption applies only to direct

purchases of tangible personal property or taxable repair services

by an exempt entity for its exclusive use. A direct purchase is one

that is billed directly to the exempt entity, and/or paid for with entity

funds (check or credit card). Purchases made by employees or

agents of the exempt entity with their personal funds are fully taxable,

even when the employee/agent is reimbursed the expense by the

exempt entity.

A direct “purchase” of tangible personal property includes the

rental or lease of tangible personal property. The direct purchase

of “services” are the taxable labor services of repairing, servicing,

altering or maintaining tangible personal property, and the labor

services (not materials) of a contractor on a real property project.

Construction, Remodel or Repair Projects. Qualifying entities

may purchase the labor services of a contractor (whether working

on tangible personal property or real property) without tax using

this certificate. However, indirect purchases of materials and labor

on real property projects are taxable. Materials furnished by or

through a contractor or the materials and/or labor furnished by a

subcontractor for the construction, reconstruction or repair of real

property are not exempt with this certificate, as they are not a direct

purchase by the entity.

Therefore a contractor’s invoice will include

(and the entity must pay) the sales tax paid or accrued by the

contractor on any materials, parts and subcontractor invoices for

the project.

ROJECT EXEMPTION CERTIFICATES (PECS). A PEC is a numbered

document issued only by the Kansas Department of Revenue or

its authorized agent. As the name implies, a PEC exempts the

entire project – materials and labor – from sales or use tax. Not all

entities are eligible to obtain a PEC. Contact the department at

785-368-8222 for more information.

Retailer Record Keeping. Retailers must keep a copy of this

completed certificate with your other sales tax records for a period

of at least three years from the date the certificate is signed and

presented to you.

seller is relieved of liability for the tax if it obtains

a completed exemption certificate from a purchaser with which

the seller has a recurring business relationship. A certificate need

not be renewed or updated when there is a recurring business

relationship between the buyer and seller. A recurring business

relationship exists when a period of no more than 12 months

elapses between sales transactions.

Penalties for Misuse.

A buyer who issues an exemption certificate

in order to unlawfully avoid payment of the tax for business or personal

gain is guilty of a misdemeanor, and upon conviction may be fined up

to $1,000 or imprisoned for up to a year, or both.

TAXPAYER ASSISTANCE

Additional information about each exemption is in our Publication

KS-1520, Kansas Exemption Certificates. This publication, as

well as Notices and other written advice on Kansas taxes

and exemptions are available from the Policy Information Library

on the department’s website at www.ksrevenue.org. Since

Kansas exemptions are not always of general application,

you are encouraged to consult the website or the department

with specific taxability issues.

If you have questions or need additional information contact:

Taxpayer Assistance Center

Kansas Department of Revenue

Docking State Office Building, 1

Floor

915 SW Harrison, Topeka, KS 66612-1588

Phone: 785-368-8222

Hearing-Impaired: 785-296-6461

KANSAS DEPARTMENT OF REVENUE

DIRECT MAIL SOURCING CERTIFICATE

K.S.A. 79-3672 provides that the purchaser of direct mail that is not a holder of a direct pay permit must provide in

conjunction with the purchase, information to show the sales tax jurisdictions to which the direct mail is delivered to recipients

or this direct mail certificate. By providing this certificate, the seller is relieved of all obligations to collect, pay or remit the

applicable tax and the purchaser is obligated to pay and remit the applicable state and local sales tax on a direct pay basis to

the Kansas Department of Revenue. This direct mail sourcing certificate will remain in effect for all future purchases from the

vendor until revoked in writing.

In lieu of providing the seller with information to show the sales tax jurisdictions to which the direct mail is delivered to

recipients, the undersigned purchaser will pay directly to the department the state and local sales tax due on the direct mail

services purchased from:

Direct Mail Seller: ___________________________________________________________________________________________

Name of Direct Mail Seller

Address: __________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

The undersigned purchaser understands and agrees that by providing this completed certificate to the seller, the under-

signed purchaser becomes obligated and liable for the applicable state and local sales tax due based on the jurisdictions to

which the direct mail is delivered to recipients. This form and the resulting tax obligation to the purchaser for the Kansas sales

tax will remain in force and in effect on or after the date shown herein until it is revoked in writing.

Purchaser

: _________________________________________________________________________________________________

Business Name

Purchaser’s Type of Business: _______________________________________________________________________

Describe business activity and/or principal product(s) manufactured or processed

Address: ________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

Purchaser’s Kansas Sales Tax Account Number**: ________________________________________________________

Authorized Signature: _____________________________________________________ Date: ___________________

Printed Name: _________________________________________________ Title: ________________________________

**Note to Seller: DO NOT accept this form from a purchaser unless a Kansas Sales Tax Account Number with which

to report and pay the sales tax is shown.

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THE DIRECT MAIL SOURCING CERTIFICATE? The state and local Kansas sales tax due on a direct mailing is based

on the location of the recipient of the mailing (called “destination” based sourcing). Because of the multiple jurisdictions that may be covered

by one mailing, the buyer of a direct mailing that does not have direct pay authority (see below) is obligated to provide the direct mail seller

with either:

1) the sales tax jurisdictions that the mailing is going to so that the seller will charge the correct amount of state and local sales tax

based on the jurisdiction of each recipient; OR

2) in lieu of providing the information and paying the applicable tax to the seller, the purchaser of direct mail may instead present to the

seller a direct mail certificate and agree to pay the applicable sales tax due directly to the Kansas Department of Revenue on its

sales tax return, Form ST-36.

DIRECT PAY AUTHORITY. Purchasers who have been issued a direct pay permit by the Kansas Department of Revenue do not need to

complete this form. However, they do need to provide the direct mail seller with documentation (a copy of the direct pay permit) of their direct

pay authority.

RETAINING THIS CERTIFICATE. Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-31 (Rev. 7/08)

KANSAS DEPARTMENT OF REVENUE

DRY CLEANING AND LAUNDRY EXEMPTION CERTIFICATE

The undersigned purchaser certifies that dry cleaning or laundry services purchased from:

Seller

: _____________________________________________________________________________________________________

Business Name

Address: ________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

are exempt from Kansas dry cleaning environmental surcharge for the following reason:

The dry cleaning or laundry services purchased with this exemption certificate will be resold by a retailer registered by

the Kansas Department of Revenue to collect the dry cleaning environmental surcharge.

Description of dry cleaning or laundry services purchased: ________________________________________

__________________________________________________________________________________________

The undersigned understands and agrees that if the tangible personal property or services are used other than as stated

above or for any other purpose that is not exempt from sales or compensating tax, the undersigned purchaser becomes

liable for the tax.

Purchaser: _________________________________________________________________________________________________

Business Name

Dry Cleaning

Registration No.: __________________________________ Kansas Sales Tax No.: _______________________________

Address: ________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

Authorized Signature: _____________________________________________________ Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHAT IS THE DRY CLEANING ENVIRONMENTAL SURCHARGE? The dry cleaning environmental surcharge is a 2.5% tax on all dry

cleaning and laundering services. It is paid by the customer in addition to the Kansas Retailers’ Sales tax due on these services.

WHO MAY USE THIS CERTIFICATE? Only those businesses that are registered with the Kansas Department of Revenue to collect the

environmental surcharge may use this certificate.

WHAT PURCHASES ARE EXEMPT? Only purchases of dry cleaning and/or laundry services for RESALE are exempt from the dry cleaning

environmental surcharge (and sales tax) with this certificate. For example, a hotel would be registered to collect the tax on dry cleaning &

laundry “sent out” for guests. The hotel would use this certificate to purchase the laundry or dry cleaning services for guests without tax. The

hotel resells the dry cleaning or laundry service to the hotel guest and collects the dry cleaning environment surcharge and sales tax from the

final consumer (hotel guest). A hotel may not use this certificate for its own linens or other hotel property.

TAX REGISTRATION NUMBERS. This certificate is an exemption from the dry cleaning environmental surcharge and also acts as a resale

exemption certificate. In order for the sale of services to be exempt, the buyer must have a current Kansas dry cleaning registration number

AND a current Kansas sales tax number. This certificate is not complete unless both numbers are given. Information on how to recognize a

Kansas sales tax number is in Publication KS-1520, “Kansas Exemption Certificates.”

A dry cleaning registration number has three parts: A-000-0000. The tax type is indicated by the letter “A,” followed by the county prefix

(each of the 105 counties in Kansas has been assigned a number), followed by four unique numbers. For example, a Shawnee County

dry cleaning registration number might be A-003-9999. (A seller may request copies of the customer’s actual certificates of registration to

verify the registration numbers furnished by the customer on this certificate.)

RETAINING THIS CERTIFICATE. Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28X (Rev. 7/08)

KANSAS DEPARTMENT OF REVENUE

INGREDIENT OR COMPONENT PART EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property purchased from:

Seller

: _________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P. O. Box City State

ZIP + 4

is exempt from Kansas sales and compensating use tax for the following reason:

K.S.A. 79-3606(m) exempts all sales of tangible personal property that becomes an ingredient or component part of

tangible personal property or services produced, manufactured or compounded for ultimate sale at retail within or

without the state of Kansas.

Description of tangible personal property or services purchased: ___________________________________

__________________________________________________________________________________________

The undersigned understands and agrees that if the tangible personal property is used other than as stated above or for any

other purpose that is not exempt from sales or compensating tax, the undersigned purchaser becomes liable for the tax.

Purchaser: _________________________________________________________________________________________________

Business Name

Kansas Tax Registration Number: ______________________________________________________________________________

Kansas Sales Tax Number or Kansas Manufacturers’ or Processors’ Exemption Number

Address: __________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

Authorized Signature: _____________________________________________________ Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS CERTIFICATE? Any business registered with the Kansas Department of Revenue buying raw materials or parts that

meet the definition of an ingredient or component part may use this certificate. The buyer must have either a Kansas sales tax number or a

Kansas Manufacturers’ or Processors’ Sales Tax Exemption Certificate Number. Buyers from other states that are not registered in Kansas

should use the Multi-Jurisdiction Exemption Certificate, Form ST-28M, to buy ingredient or component parts.

WHAT PURCHASES ARE EXEMPT? Only items that meet the definition of an ingredient or component part are exempt. Whether or not the

item qualifies for exemption depends on how it is used in production or processing. An item may be taxable for one use and exempt for

another use, even though purchased by the same consumer. Each item and its use must be separately measured against the definition to

determine whether the sale is taxable or exempt.

CONTAINERS AND SHIPPING CASES: Included as ingredient or component parts are containers, labels, and shipping cases used to

distribute property manufactured or produced for sale. To be exempt, the container or other shipping or handling material must actually

accompany the product sold, and must NOT be returned for reuse to the manufacturer or producer. Containers, wrappers and other

similar materials are TAXABLE when purchased by a business providing a nontaxable service or when used for any purpose other than

the distribution and sale of taxable property.

EXAMPLES: The following items are exempt as ingredient or component parts when used in these industries or applications.

• Clay, paints, & glazes used to make pottery or china. • Paper and ink used in the publication of newspapers.

• Frames, springs, foam, & fabric used to make • Styrofoam plates, cups, paper napkins, plastic silverware

mattresses or furniture. and take-out containers purchased by a restaurant.

• Gold, silver, gems and beads used to make jewelry.

PROVIDING OF SERVICES: The term “service” refers only to TAXABLE services. Businesses providing nontaxable services (accountants,

doctors, lawyers, day care centers, etc.) must pay sales tax on all property used to provide their services.

CONTRACTORS: Contractors, subcontractors, and repairmen may NOT use this certificate to purchase their materials. Materials and parts

purchased by contractors are TAXABLE unless purchased or removed from a tax-exempt inventory with a Project Exemption Certificate.

RETAINING THIS CERTIFICATE: Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28D (Rev. 7-08)

____________________________________________________________________________________________________________________________________

Street Address City State ZIP

KANSAS DEPARTMENT OF REVENUE

INTEGRATED PRODUCTION MACHINERY AND EQUIPMENT EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property and/or services purchased from:

Seller: _________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P.O. Box City State

ZIP + 4

are exempt from Kansas sales and compensating use tax for the following reason:

K.S.A. 79-3606(kk)(1) exempts (A) all sales of machinery and equipment used in Kansas as an integral or essential

part of an integrated production operation by a manufacturing or processing plant or facility, (B) all sales of installation,

repair and maintenance services performed on such machinery and equipment; and (C) all sales of repair and replacement

parts and accessories for such machinery and equipment.

TO OBTAIN THIS EXEMPTION, COMPLETE LINES 1 THROUGH 5 AND THE CERTIFICATION

1. Describe the qualified machinery or equipment (include make, model, type, or other identifying criteria):

____________________________________________________________________________________________

2. Describe how this equipment is used in the production process:

____________________________________________________________________________________________

3. The equipment described in line 1 is / will be (circle one) located and used at the following Kansas manufacturing facility

or plant. (If this certificate applies to more than one location attach a list which identifies the additional locations.)

____________________________________________________________________________________________________________________________________

Name of Facility

4. This certificate is for the: (Check all that apply)

 Purchase, lease, or rental of the integrated production machinery or equipment described in line 1.

 Materials and/or services necessary to install the equipment described in line 1. Describe:

__________________________________________________________________________________________

 Materials and/or labor to fabricate qualified equipment. Describe:

_________________________________________________________________________________________

 Repair or maintenance services on the equipment described in line 1.



Repair parts, replacement parts, or accessories for the equipment described in line 1. Describe; include model, type, etc

_________________________________________________________________________________________

 Purchase, lease, or rental of surface-mining equipment, as discussed in NOTICE 14-16.

5. The purchaser is:



the owner/lessor of the equipment



a contractor installing, servicing, repairing or fabricating the equipment

The undersigned understands and agrees that if the tangible personal property and/or services are used other than as stated

above or for any other purpose that is not exempt from sales or compensating use tax, the undersigned purchaser becomes

liable for the tax.

Purchaser: _______________________________________________________________________________________

Business Name

Purchaser’s Type of Business ________________________________________________________________________

Describe business activity and/or principal product(s) manufactured or processed

Address: ______________________________________________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP

Authorized Signature: _____________________________________________________ Date: _________________

Printed Name: _____________________________________________ Title: _________________________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

ST-201 (Rev. 1-15)

ABOUT THE EXEMPTION FOR INTEGRATED PRODUCTION MACHINERY & EQUIPMENT

WHO MAY USE THIS EXEMPTION? Any manufacturing or

processing business engaged in an integrated production operation

at a plant or facility located in Kansas may use this certificate to

purchase, install or repair integrated production machinery and

equipment without tax. Contractors & repairmen may also use this

certificate to purchase without tax the parts, materials and labor

necessary to install, service, repair or fabricate qualified equipment.

Examples of manufacturing or processing businesses include:

Chemical production; electrical power generation; the fabrication

of automobiles, airplanes, machinery or transportation equipment;

the fabrication of metal, plastic, wood or paper products; newspaper

printing; petroleum refining; water treatment; wholesale bottling;

etc. Also included are agricultural commodity processing operations

(such as meat packing, frozen food processing, and the operations

of a grain storage facility) and operations at a mineral (oil, gas,

stone, sand, etc.) extraction site to clean, separate, grind or

otherwise treat or prepare the product before its transmission to a

refinery or for other wholesale or retail distribution.

Non-industrial businesses whose operations are primarily (more

than 50%) retail, and produce or process tangible personal property

as an incidental part of the retail business may NOT use this

certificate. Retailers who may not use this certificate include:

contractors who alter, service or repair real property; grocers who

butcher or dress livestock or poultry; and retailers who bake, cook

or prepare food products in the regular course of their retail trade.

WHAT IS INTEGRATED PRODUCTION MACHINERY &

EQUIPMENT? To qualify as integrated production equipment, the

item must be an integral or essential part of a process to

manufacture, process, fabricate, finish, or assemble items for

wholesale or retail distribution.

XEMPT ITEMS INCLUDE (BUT ARE NOT LIMITED TO) MACHINERY AND EQUIPMENT

USED TO:

• Receive, transport, convey, handle, treat or store raw materials

in preparation for their placement on the production line;

• Transport, convey, handle or store the property undergoing

manufacture at any point from the beginning to the end of the

process occurring at the plant or facility;

• Act upon, effect, promote or otherwise facilitate a physical

change to the property undergoing manufacturing or

processing;

• Guide, control or direct the movement of property undergoing

manufacturing or processing;

• Test or measure raw materials, the property undergoing

manufacturing or processing, or the finished product as

necessary by the production operation;

• Plan, manage, control, or record the inventories of raw materials,

consumables, component parts, and the finished product;

• Produce energy for, lubricate, control, or otherwise enable

the function of other production equipment;

• Package the product;

• Transmit or transport electricity, coke, gas, water, steam or

similar substances used in production from the point of

generation (if produced at the plant site), or from the point

where it enters the plant or facility (if purchased or delivered

offsite), to the production operation;

• Cool, heat, filter, refine or otherwise treat water, steam, acid,

oil, solvents or other substances used in production operations;

• Provide and control an environment required to maintain

certain levels of air quality, humidity or temperature in special

and limited areas of the plant or facility where such regulation

is part of and essential to the production process;

• Treat, transport or store waste or other by products of the

production process at the plant or facility; or

• Control pollution produced by the manufacturing or processing

operation at the plant or facility.

LSO EXEMPT: All labor services to install, repair or maintain the

manufacturing machinery and equipment, and all repair parts,

replacement parts, and accessories for qualified equipment. These

include, but are not limited to: dies, jigs, molds, patterns and safety

devices that are attached to the exempt equipment; and parts and

accessories that require periodic replacement such as belts, cutting

bars, drill bits, grinding balls and wheels, saws; and refractory brick

and other refractory items for exempt kiln equipment used in

production operations.

AXABLE ITEMS INCLUDE (BUT ARE NOT LIMITED TO):

• Machinery and equipment used for non-production purposes,

such as accounting, administration, advertising, employee

work scheduling, fire prevention, first aid, marketing, plant

cleaning, plant communications, plant security, record keeping,

or sales and other related activities. Also taxable are

computers and related peripheral equipment not used directly

and primarily to control or measure the manufacturing process,

or furniture and other furnishings (e.g., office equipment).

• Machinery, equipment and tools used primarily to maintain or

repair any type of machinery and equipment, or the building

or plant;

• Transportation, transmission and distribution equipment not

primarily used in the production, warehousing or material

handling process, such as the conveyance of natural gas,

electricity, oil or water, and related equipment located outside

the plant or facility;

• Buildings (other than exempt machinery and equipment that

becomes a structural part of the building) and other real estate

not otherwise exempt, and building fixtures not integral to the

manufacturing operation, such as utility systems for heating,

ventilation, air conditioning, communications, plumbing or

electrical;

• Machinery and equipment used for general plant heating,

cooling and lighting;

• Motor vehicles that are registered to operate on public

highways;

• Employee apparel, except safety and protective apparel that

is purchased by the employer and furnished without charge

to those employees who are involved in production or research

activities; or

• Machinery and equipment used in mining, gas and petroleum

drilling, water drilling, quarrying, sand and gravel extraction

operations, and other similar activities to explore for or extract

petroleum, gas, mineral, rock, sand, water, and other minerals

or similar matter from below the surface of the soil or water or

from a mine.

ADDITIONAL INFORMATION. A more complete discussion of this

sales tax exemption is in the Kansas Department of Revenue’s

Notice 00-08, Kansas Exemption for Manufacturing Machinery &

Equipment as Expanded by K.S.A. 79-3606(fff). This notice is

available by calling 785-368-8222 or from our website:

www.ksrevenue.org.

RETAINING THIS CERTIFICATE. Sellers should retain a completed

copy of this certificate in their records for at least three years from

the date of sale. A seller is relieved of liability for the tax if it obtains

a completed exemption certificate from a purchaser with which the

seller has a recurring business relationship. A certificate need not be

renewed or updated when there is a recurring business relationship

between the buyer and seller. A recurring business relationship exists

when a period of no more than 12 months elapses between sales

transactions.

 I have common carrier authority to haul regulated commodities. I will use the purchased item(s) as, or attached to, rolling

stock for the purpose of hauling persons or commodities for hire in interstate commerce. My Motor Carrier authority is

under the name of ____________________________________ . My Motor Carrier number is _________________ .

My USDOT number is _________________________________ .

 I do not have common carrier authority but I am hauling exempt (unregulated) commodities. I will use the purchased

item(s) as, or attached to, rolling stock for the purpose of hauling unregulated commodities for hire in interstate commerce.

My USDOT number is ______________________ and under the name of _____________________ .

I am leased/contracted to: _______________________________________________________________________

Lessor’s Name

 I do not have common carrier authority but I am leased/contracted to a holder thereof, and that I will use the purchased

item(s) as, or attached to, rolling stock to haul persons or commodities for hire in interstate commerce.

KANSAS DEPARTMENT OF REVENUE

INTERSTATE COMMON CARRIER EXEMPTION CERTIFICATE

The undersigned motor carrier certifies that the tangible personal property purchased from:

Seller: _________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP + 4

is exempt from Kansas sales and compensating use tax for the following reason:

K.A.R. 92-19-28 and K.A.R. 92-20-18 exempt the sale of rolling stock (including buses and trailers), repair or

replacement materials and parts for rolling stock, gasoline, distillate and other motor fuels purchased for rolling stock

when purchased by a motor carrier qualifying as a public utility, for immediate and direct use in interstate commerce.

The qualifying motor carrier may be engaged in interstate commerce exclusively, or in both interstate and intrastate

commerce.

Description of tangible personal property purchased: ____________________________________________

_________________________________________________________________________________________

The undersigned motor carrier further certifies that he or she qualifies as a public utility on the following basis:

Check one box and complete the information requested.

Lessor’s Address: ______________________________________________________________________________

Street, RR or P.O. Box City State ZIP + 4

Address: _____________________________________________________________________________________

Lessor’s Motor Carrier Number: ___________________ Lessor’s USDOT Number: _________________________

CHARGES FOR LABOR SERVICES TO SERVICE, MAINTAIN, OR REPAIR ROLLING STOCK,

INCLUDING BUSES AND TRAILERS, ARE TAXABLE.

The undersigned understands and agrees that if the tangible personal property is not used in interstate commerce, which is

exempt from sales or compensating use tax, the undersigned motor carrier becomes liable for the tax.

Purchaser: _________________________________________________________________________________________________

Motor Carrier Name

Address: __________________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP + 4

Authorized Signature: _____________________________________________________ Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

(See reverse for additional information and instructions.)

ST-28J (Rev. 6-12)

ABOUT THE INTERSTATE COMMON CARRIER EXEMPTION

WHO MAY USE THIS EXEMPTION?

Only interstate common carriers or those leased to an interstate common carrier may use this exemption. Three types of

interstate common carriers are exempt from sales tax:

• Common carriers that transport regulated goods or persons in interstate commerce.

• Common carriers engaged in the interstate transportation of goods exempt from regulation (such as

livestock and grain).

• Common carriers that haul both Regulated and Exempt commodities.

In order to qualify as a common carrier a motor carrier must: 1) be actively engaged in the business of hauling persons or

freight for others; and, 2) actively advertise or otherwise hold out that it is actively engaged in the business of hauling persons

or freight for others. Motor carriers do not qualify as common carriers and may not claim the exemption available to common

carriers if the motor carrier only hauls goods or materials for a separately incorporated business or businesses that have a

significant ownership interest in the motor carrier and use or consume the goods or materials that are being hauled in activities

that involve construction, oil and gas well exploration, or other similar activities.

WHO IS NOT EXEMPT?

Contract carriers that are not for hire to the general public. They are not common carriers and, therefore, NOT exempt from

sales tax. Also not exempt are common carriers that are intrastate carriers (operating only within the state). These carriers are

not exempt from sales tax because they are not involved in interstate commerce.

WHAT PURCHASES ARE EXEMPT?

Only rolling stock, parts, motor fuels and other items used directly and immediately in interstate commerce are exempt. All

other property purchased by a common carrier is taxable. The examples below illustrate the types of items a carrier may

purchase without tax using this exemption certificate, and those that are taxable.

Exempt Taxable

Air and oil filters Semi trucks/tractors Boxes Lining Paper

Fuel pumps Spark plugs Building Materials Office equipment

Gasoline and diesel fuel Tarps Computers Office supplies

Hoses and belts Tires Furniture Pads Packing “Peanuts”

Lubricants Trailers (all types) Fork Lifts Packing Supplies

Refrigerant Valves Gantries Piano Boards

Repair parts for trailers Windshields and mirrors Labor Services Straps

& trucks/tractors Ladders Tape

LABOR SERVICES

Only tangible personal property may be purchased exempt. Labor services to repair, replace, service, or maintain a carrier’s

rolling stock are subject to sales tax.

EXAMPLE: A common carrier has the engine in one of its trucks overhauled in Kansas. The parts used in the overhaul (water pump,

spark plugs, oil and oil filter) are exempt. The repair shop would have the carrier complete this certificate to exempt the sale of

these parts from sales tax. However, the labor service fee charged by the mechanic or repair shop to do the work (such as a rate

of $40/hr.) is subject to sales tax. The repair shop would charge the carrier sales tax on the total labor charges.

NUMBERS

Motor Carrier Number. Carrier numbers are issued by the Federal Motor Carrier Safety Administration (FMCSA) granting

authority for interstate operations.

USDOT Number. Companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce

must be registered with the FMCSA (fmcsa.dot.gov/) and must have a USDOT Number. Also, commercial intrastate hazardous

materials carriers who haul quantities requiring a safety permit must register for a USDOT Number.

An owner/operator may purchase a truck and/or trailer, and repair parts therefore, exempt from Kansas sales tax when the

owner/operator does not have interstate common carrier authority themselves but, will lease or contract to an interstate

common carrier.

RETAINING THIS CERTIFICATE

Sellers should retain a completed copy of this certificate in their records for at least three years from the date of sale. A seller

is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has a

recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship

between the buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses

between sales transactions.

KANSAS DEPARTMENT OF REVENUE

MULTI-JURISDICTION EXEMPTION CERTIFICATE

NOTE: Check applicable state laws for authority to issue this certificate for the uses indicated below.

Review national tax reporting service publications for information about the states that honor this certificate.

Purchaser

: _________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP + 4

I hereby certify that I am a:

 Wholesaler of: _____________________________________________________________________________

Description of principal product(s)

 Retailer of: ________________________________________________________________________________

Description of principal product(s)

 Manufacturer of:____________________________________________________________________________

Description of principal product(s)

 Lessor of: _________________________________________________________________________________

Description of principal product(s)

 Other: ____________________________________________________________________________________

Description of principal product(s)

and am registered* in the following cities or states:

City or State ____________________________________ Registration Number ___________________________

* Wholesalers are not required to register with the Kansas Department of Revenue to collect sales tax unless they make retail sales. Retail sales

include sales to employees.

The tangible personal property described below which I am purchasing from:

Seller: _____________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP + 4

will be for wholesale, resale, or as ingredient or component parts of a new product to be resold, leased, or rented in the

normal course of my business.

Description of property purchased with this exemption certificate: __________________________________

__________________________________________________________________________________________

I further certify that if the property purchased with this certificate is used or consumed so as to make it subject to sales or

use tax, I will pay the tax due directly to the proper taxing authority or inform the seller to add tax to the billing. This certificate

shall be a part of each order that I may give you in the future and is valid until cancelled by me in writing or revoked by the

city or state.

Under the penalties of perjury, I swear or affirm that the information on this form is true and correct as to every material matter.

Authorized Signature: _____________________________________________________ Date:_________________

Misuse of this certificate by the seller, lessor, buyer, lessee, or their representative may be punishable by fine,

imprisonment, or loss of the right to issue certificates in some cities or states.

CAUTION TO THE SELLER: In order for this certificate to be accepted in good faith, you must exercise care that the property being sold is of a type

normally sold wholesale, resold, leased, rented, or used as an ingredient or component part of a product manufactured by the buyer in the usual

course of his business. A seller who fails to exercise due care and good judgment in this regard could be held liable for the sales tax due.

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

ST-28M (Rev. 7-08)

ABOUT THE MULTI-JURISDICTION EXEMPTION CERTIFICATE

PURPOSE

The Multi-Jurisdiction Exemption Certificate is used whenever an exempt transaction crosses state lines. In Kansas, it takes

the place of a Kansas resale or ingredient or component part exemption certificate when:

1) an out-of-state business, taking delivery of inventory or ingredient parts in Kansas, is not registered in Kansas,

2) a wholesaler is buying inventory.

A Kansas business buying inventory or ingredient parts in another state may also furnish this certificate to the seller

in the other state, subject to the laws of that state.

WHO MAY USE THIS CERTIFICATE?

Businesses and wholesalers from other states that do not have a Kansas sales tax number to furnish for a Kansas ingredient or

component part exemption certificate or a Kansas resale exemption certificate must use this certificate to certify that they

qualify for these two Kansas exemptions when making purchases in Kansas.

A Kansas wholesaler will use this certificate when buying inventory from either another Kansas business or a business in

another state. Wholesalers are not required to obtain a Kansas sales tax number. A Kansas retailer may also use this

certificate when purchasing inventory or ingredient or component parts from a retailer or wholesaler in another state.

WHAT PURCHASES ARE EXEMPT?

Only goods and merchandise (tangible personal property) are exempt. To be exempt, the tangible personal property must be for:

• wholesale sale,

• retail sale (resale), rental, or lease,

• an ingredient or component part of a new product to be resold, leased, or rented.

In accepting this certificate, the seller should exercise reasonable care and judgment. The property purchased must be of the

type normally sold wholesale or retail, leased or rented, or used as an ingredient or component part of a product manufactured

in the customer’s usual course of business.

Equipment and fixtures for a business are not exempt. When purchased in Kansas, these items are taxable. When a Kansas

business buys equipment or supplies from another state, the Kansas business will owe Consumers’ Compensating Use tax on

these purchases unless a sales or use tax of at least equal to the Kansas retailers’ sales tax rate in effect where the item is

used, stored or consumed. See Publication KS-1510, “Kansas Sales and Compensating Use Tax” available on the

department’s website.

RETAINING THIS CERTIFICATE: Sellers should retain a completed copy of this certificate in their records for at least three

years from the date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a

purchaser with which the seller has a recurring business relationship. A certificate need not be renewed or updated when

there is a recurring business relationship between the buyer and seller. A recurring business relationship exists when a period

of no more than 12 months elapses between sales transactions.

REQUEST FOR PROJECT EXEMPTION CERTIFICATE

Kansas Department of Revenue

Office of Policy and Research

915 SW Harrison St., Room 230

Topeka, KS 66612-1588

Date________________________

Telephone: 785-296-3081

Fax: 785-296-7928

It is requested that a Certificate of Exemption be issued to the Petitioning Authority for the following described project if it is determined

by the Department of Revenue that the proposed project qualifies for exemption from sales tax under the provisions of K.S.A. 79-

3606(d) – public or private nonprofit hospital, elementary or secondary school, educational institution & political subdivisions of the

state of Kansas; K.S.A. 79-3606(e) – United States Government, its agencies or instrumentalities; K.S.A. 79-3606(xx) – 501(c)(3)

nonprofit zoo; K.S.A. 79-3606(aaa) – 501(c)(3) religious organization; K.S.A. 79-3606(ccc) – 501(c)(3) primary care clinic; K.S.A. 79-

3606(iii) non-profit food distribution center; K.S.A. 79-3606(qqq) TLC for Children and Families, Inc.; K.S.A. 79-3606(sss) non-profit

charitable family providers; K.S.A. 79-3606(ttt) museum within a designated qualified hometown or K.S.A. 79-3606(uuu) Kansas

Children’s Service League.

(A) Type of project: ______________________________________________________________________________

Describe work to be done

A. Present use of facility: ______________________________________________________________________

B. Proposed use of facility after project:___________________________________________________________

(B) Project location: ______________________________________________________________________________

Building Number, Street Address, City, State, and Zip Code

(C) Is this project being constructed as part of a business enterprise whose sales are subject to sales tax (e.g., municipal

water, electric or gas companies)?



Yes  No

(D) Is the Petitioning Authority authorized to levy ad valorem taxes on tangible property?

Yes  No

(E) A. Is this project being totally financed by industrial revenue bonds?



Yes



B. Is this project being partially financed by industrial revenue bonds?



Yes

 No

Amount of bonds being issued for project: __________________________________________________________

If you answered “Yes” to A or B, you must complete the agreement on the back of this form and enclose a copy of the

letter of intent or resolution of intent to issue bonds.

If you answered “No” to A or B, how is the project being financed (explain type of tax, bonds, etc.)?

___________________________________________________________________________________________

(F) Name of claimant owner of project: _______________________________________________________________

(G) Starting date: ___________________________ (H) Estimated completion date: ___________________

( I ) Estimated project cost: ____________________ (J) List names and addresses of prime contractors:

(K) Contract date: __________________________

(L) Contract number: ________________________

(M) Project number: _________________________

______________________________________________

Petitioning Authority

____________________________________________

Mailing Address

______________________________________________

Signature of Authorized Representative

____________________________________________

City, State & ZIP

_______________________________

Type or Print Name

_______________

Tax Exempt Entity No.

_________________________

Title

________________

Phone Number

PR-76 (Rev. 7-06)

REQUEST FOR PROJECT EXEMPTION CERTIFICATE

PURSUANT TO K.S.A. 79-3606 (cc) OR K.S.A. 79-3606(hhhh)

Kansas Department of Revenue

Office of Policy and Research

915 SW Harrison St.

Topeka, KS 66612-1588

Telephone: 785-296-3081

FAX: 785-296-7928

Date:

It is requested that a Certificate of Exemption from sales tax be issued to the taxpayer for the following described project.

(A) Name of taxpayer: EIN:

Business type:  Corporation L.L.C.  Limited Liability Partnership/Partnership  Individual

 Other:

(B) 1. Name of business which will operate the business facility (if different from the name listed on Line (A)):

EIN:

Business type:  Corporation  L.L.C.  Limited Liability Partnership/Partnership  Individual

 Other:

2. Location of business facility investment:

Street Number and Address

County: City: State: ZIP:

3. Mailing address of taxpayer (business) who will own and/or operate the business facility:

Box Number and/or Street Number and Name

City: State: ZIP:

4. Email Address:

 Addition to an existing facility  Additional machinery and equipment, not to include

the purchase of a motor vehicle or trailer.

(D) ATTACH an explanation or list of improvements to be constructed, repairs or remodeling to be done, and machinery and equipment

to be purchased.

(E) Describe specifically the type of business activity to be conducted by the taxpayer [name on Line (A)] at the business facility:

(F) Indicate the type of business conducted by the named taxpayer. See instructions.

 1. CERTIFIED BUSINESS-K.S.A. 79-3606(cc)

The business has been certified by the Department of Commerce as meeting the eligibility criteria for the High

Performance Incentive Program (HPIP). Attach a copy of the letter of certification.

 2. AGRICULTURAL BUSINESS-K.S.A. 79-3606(hhhh)

The business must have a project with actual costs of $50,000 or more and must be identified under the North American

industry classification system (NAICS) subsectors

112112,  112120, 112210, 1123, or 1124, (See instrs).

(G) Is this project a result of working with officials of the state, county, or city government?

 Yes  No

If yes, provide the name of the agency and contact:

What will be the average annual wage for new (non-managerial) employees?

(H) List the name(s) and address(es) of the general contractor(s):

(I) Estimated project costs: Total: Construction costs:

Machinery and equipment costs:

(J) Contract date: (K) Contract No.:

(L) Estimated completion date (not to exceed two years):

Taxpayer (please type or print) Name of Authorized Representative (please type or print)

Signature of Authorized Representative Title Phone Number

PR-70

b Rev. 7-14

INSTRUCTIONS

Certified Business - K.S.A. 79-3606(cc): An exemption from sales tax is allowed on all sales of tangible personal property or

services purchased for the construction, reconstruction, enlarging or remodeling of a business that has been certified through the

High Performance Incentive Program (HPIP). The sale and installation of machinery and equipment purchased for installation at

the business shall also be exempt from sales tax.

Agricultural Business - K.S.A. 79-3606(hhhh): An exemption from sales tax is allowed on and after July 1, 2014 for all sales of

tangible personal property or services purchased for the construction, reconstruction, enlarging or remodeling of a business

identified under the North American industry classification system (NAICS) subsectors: 112112-Cattle Feedlots; 112120-Dairy

Cattle and Milk Production; 112210 Hog and Pig Farming; 1123-Poultry and Egg Production; or 1124-Sheep and Goat Farming.

This qualifying NAICS must be on file with the Kansas Department of Labor for your specific facility address that has been

provided on this application. The sale and installation of machinery and equipment purchased for installation at the business shall

also be exempt from sales tax. Only those projects that have total actual costs of $50,000 or more will qualify.

Line (A) Enter the name of the entity that will operate the business facility and claim the sales tax exemption, the

employee identification number (EIN) and check the appropriate box identifying the business type.

Line (B)(1) Enter the name and EIN of the business, if it is different than line (A), above, and check the appropriate box

identifying the business type. If the taxpayer on line (A) operates under a Doing Business As (DBA) name, enter

the DBA.

Line (B)(2) Enter the location, including the county of the business facility where the investment is going to be made.

Line (B)(3) Enter the complete mailing address of the taxpayer who will own and/or operate the above referenced business

facility.

Line (B)(4) Enter the email address of the authorized representative for the taxpayer.

Line (C) Check the applicable box(es) that describe the project and attach required documentation.

Line (D) Attach an explanation or list of improvements to be constructed, repairs or remodeling to be done, and

machinery and equipment to be purchased.

Line (E) Describe specifically the type of business activity to be conducted by the taxpayer at the business facility.

Line (F) Indicate the type of business activity to be conducted at the business facility by the named taxpayer.

Line (F)(1) Certified Business - K.S.A. 79-3606(cc): Certified business means a firm which is qualified by the Secretary of

Commerce as meeting the eligibility criteria for the High Performance Incentive Program (HPIP) pursuant to K.S.A.

2003 Supp. 74-50,131. The firm must be entitled to the corporate tax credit established in K.S.A. 74-50,132 or must

have received written approval for participation and has participated, during the tax year in which the exemption is

claimed, in training assistance by the Department of Commerce under the Kansas industrial training (KIT), Kansas

industrial retraining (KIR) or state of Kansas investments in lifelong learning program (SKILL). ATTACH a copy of the

PD (project description) submitted to the Department of Commerce pre-identifying this investment as well as the

initial correspondence from the Department of Commerce assigning the project number.

Line (F)(2) Agricultural Business –K .S.A. 79-3606(hhhh): An agricultural business must be identified under the North

American industry classification system (NAICS) subsectors: 112112-Cattle Feedlots; 112120-Dairy Cattle and Milk

Production; 112210 Hog and Pig Farming; 1123-Poultry and Egg Production; or 1124-Sheep and Goat Farming. This

qualifying NAICS must be on file with the Kansas Department of Labor for your specific facility address that has been

provided on this application. Only those projects that have total actual costs of $50,000 or more will qualify.

Line (G) Check the applicable box and list the name of the organization and/or person you were contacted by and the

average wage of the new (non-managerial) employees.

Line (H) List the name and address of the general contractor if available. If a general contractor does not exist for this

project, please attach a list of all the contractors/subcontractors (if available) involved in performing labor

services or supplying materials for the project. Include in this list, the estimated project costs, contract date,

contract number, and the estimated completion date for each contract.

Line (I) Enter the estimated cost of the project.

Line (J) Enter the date of the contract.

Line (K) Enter the applicable contract number if available.

Line (L) Enter the estimated completion date for this project. The Department requests that this period not extend beyond

two years from the application date.

Signature The name of the taxpayer as well as the authorized representative requesting the exemption should be typed or

printed in the area provided. The authorized representative must also sign the request and provide a phone

number where they can be reached during business hours.

_______________________________________________________________________________________________

Contractor / Subcontractor

_______________________________________________________________________________________________

P.O. Box and/or Street Number and Name

_________________________________________________________ _________________________________

Kansas Department of Revenue

Office of Policy and Research

915 SW Harrison St., Room 230 Telephone: 785-296-3081

Topeka, KS 66612-1588 FAX: 785-296-7928

STATE OF KANSAS

PROJECT COMPLETION CERTIFICATION

TO:_____________________________________________________________________________________________

Name of Entity to whom Project Exemption Certificate was Issued

_______________________________________________________________________________________________

Street Address City State ZIP

This is to certify, to the best of my knowledge and belief, that all materials purchased under Exemption Certificate Number

_______________________________________ , issued by the Kansas Department of Revenue, were incorporated into the

building or project for which the exemption was issued and were entitled to an exemption pursuant to K.S.A. 79-3606(d), (e)

or (cc), as amended.

_______________________________________________________________________________________________

Street Address City State ZIP

Signature and Title of Authorized Representative Date

INSTRUCTIONS

Upon completion of a tax exempt project, the contractor must furnish this certification to the taxpayer for which the work was

performed. A copy of this certification must also be forwarded to the Kansas Department of Revenue, Office of Policy and

Research, 915 SW Harrison Street, Room 230, Topeka, Kansas 66612-1588. All invoices must be retained by the contractor

for a period of five (5) years and are subject to audit by the Kansas Department of Revenue.

PR-77 (Rev. 6-08)

KANSAS DEPARTMENT OF REVENUE

RAILROAD EXEMPTION CERTIFICATE

The undersigned railroad certifies that the tangible personal property or service purchased from:

Seller

: _____________________________________________________________________________________________________

Business Name

Address: __________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

is exempt from Kansas sales and compensating use tax for the following reason:

K.S.A. 79-3606(f) exempts all sales of tangible personal property purchased by a railroad for consumption or movement

directly and immediately in interstate commerce, and K.S.A. 79-3606(y) exempts all sales of materials and services

used to repair, service, alter, maintain, manufacture, remanufacture, or modify railroad rolling stock for use in interstate

or foreign commerce under authority of the laws of the United States.

Description of tangible personal property or services purchased: ___________________________________

___________________________________________________________________________________________

The undersigned understands and agrees that if the tangible personal property or services are used other than as stated

above or for any other purpose that is not exempt from sales or compensating tax, the undersigned purchaser becomes liable

for the tax.

Purchaser: _________________________________________________________________________________________________

Name of Railroad

Address: ________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

Authorized Signature: _____________________________________________________ Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS EXEMPTION?

Only railroads licensed under United States law for interstate or foreign commerce are eligible to use this certificate.

WHAT PURCHASES ARE EXEMPT?

To be exempt, the tangible personal property must be for

consumption or movement directly and immediately in interstate commerce. The

exemption applies whether the qualified property is purchased, leased or rented. Also exempt are repair parts, materials, and labor services for

the qualified property. All other items are TAXABLE and cannot be purchased by a railroad with this certificate. Below are representative (but not

necessarily all-inclusive) examples of exempt and taxable purchases by a railroad.

EXEMPT TAXABLE

• Locomotives (all types) • Computers • Signaling equipment

• Rail cars (all types) • Office equipment • Switching equipment

• Semitrailers • Office supplies • Vehicles

• Diesel fuel and oil for any of the above • Rails and railroad ties • Vehicle fuels and oils

• Parts and labor for any of the above • Parts and labor services for any of the above

• Utilities used by any of the above • Roadway maintenance and repair equipment

•

Utilities used for any of the above

CONSTRUCTION OR REMODELING PROJECTS. A railroad is NOT exempt from sales tax on the purchase of materials or labor services

for a construction project unless the project itself qualifies for a project exemption as an economic development project. When laying new

track, the materials (track, ties, etc.) and labor are subject to state and local sales tax. When a railroad contracts with a contractor to build a

new building or facility, all materials for the project (whether purchased by the general contractor, subcontractor, or the railroad) are

taxable.

Labor services on original construction of a building or facility are exempt by law. When a railroad contracts to have a building or facility

remodeled, the labor services, as well as the materials, are taxable. This exemption certificate cannot be used by a railroad to purchase

materials or labor services for any type of construction project.

RETAINING THIS CERTIFICATE. Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28R (Rev. 7/08)

KANSAS DEPARTMENT OF REVENUE

RETAILER/CONTRACTOR EXEMPTION CERTIFICATE

The undersigned contractor-retailer certifies that the tangible personal property purchased from:

Seller

: _____________________________________________________________________________________________________

Business Name

Address: __________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

is exempt from Kansas sales and compensating use tax for the following reason:

K.S.A. 79-3603(l)(2) provides that a contractor, subcontractor or repairman who maintains an inventory of tangible

personal property both for resale and for use by them for the purpose of erecting structures, or improving altering or

repairing real or personal property, shall be deemed a retailer with respect to purchases for and sales from such inventory.

Description of tangible personal property or services purchased: ___________________________________

_________________________________________________________________________________________

I hereby certify that I hold a valid Kansas Sales Tax Registration Number: ______________________________ , and that

I am in the business of selling: _______________________________________ , and that the location of my retail outlet is:

__________________________________________________________________________. The undersigned understands

and agrees that if the tangible personal property or services are used other than as stated above or for any other purpose

that is not exempt from Kansas sales or compensating tax, the undersigned purchaser becomes liable for the tax.

Purchaser: _________________________________________________________________________________________________

Business Name

Address: __________________________________________________________________________________________________

Street, RR, or P. O. Box City State ZIP + 4

Authorized Signature: _____________________________________________________ Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY

WHO MAY USE THIS EXEMPTION? Only those contractors, subcontractors, or repairmen who maintain an inventory of merchandise for

the purpose of making retail sales to the public may use this exemption certificate. A retail sale is a sale that does not include installing the

item purchased. A contractor, subcontractor, or repairman who purchases materials for installation on a job-by-job basis and who does not

maintain an inventory for the purpose of making retail sales is not a contractor-retailer, but is a contractor. A contractor may not use this

certificate. A contractor is considered to be the final consumer of the materials purchased from a supplier for a job and, therefore, must pay

sales tax on them when purchased. For more detailed information on how sales tax applies to the construction industry, consult Information

Guide EDU-26, Sales Tax Guidelines for Contractors and Contractor-Retailers, which is available from our website: www.ksrevenue.org

WHAT PURCHASES ARE EXEMPT? Only merchandise of the type that the contractor-retailer holds in its resale inventory may be purchased

tax exempt with this certificate. Materials and supplies that may be purchased using this certificate include (but are not limited to): electrical

supplies, lumber, nails, paints, plumbing supplies, screws, sheet rock, stains, varnishes, and wallpaper.

WHAT PURCHASES ARE TAXABLE? Tools and equipment necessary to perform a job (often considered overhead items) are TAXABLE.

Contractors and contractor-retailers are the final users or consumers of any tools used in their trade or business and must pay sales tax on

them when purchased. (If purchased from another state, a Kansas compensating use tax will be due if a sales tax equal to at least the state

and local sales tax rate in effect where the item will be used, stored or consumed has not been paid on the purchase price). For additional

information download Publication KS-1510, Sales and Compensating Use Tax, from the department’s website. Items such as drills, drill bits,

hammers, nail guns, saws, screwdrivers, tool belts and wrenches are taxable. Tools and construction equipment leased or rented for a job

are also taxable to the contractor or contractor-retailer unless the customer has furnished a Project Exemption Certificate.

LABOR SERVICES. This certificate applies ONLY to items of tangible personal property. Taxable labor services performed by a contractor,

subcontractor or a contractor-retailer can only be purchased exempt from sales tax with a Project Exemption Certificate issued by the

department or its authorized agent.

RETAINING THIS CERTIFICATE. Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28W (Rev. 7/08)

Anticipated Departure Date: ________ /________ / ________

Last 4 digits:

_____________

KANSAS DEPARTMENT OF REVENUE

SALES AND/OR TRANSIENT GUEST TAX EXEMPTION CERTIFICATE FOR LODGING

The undersigned purchaser certifies that all information provided below is true and correct, and that the tangible personal property or

services purchased from the seller is exempt from Kansas sales tax or Kansas transient guest tax for the reason(s) stated below (check

applicable box(es)). The undersigned understands and agrees that if the tangible personal property or services are used other than as

stated, or for any other purpose that is not exempt from sales or transient guest tax, the undersigned purchaser becomes liable for the tax.

Seller (hotel) Name: ____________________________________________________________________________________

Address: _____________________________________________________________________________________________

Street, P.O. Box or Rural Route City State ZIP Code

Guest Name: ______________________________________________________________ Room Number: _____________

Address: _____________________________________________________________________________________________

Street, P.O. Box or Rural Route City State ZIP Code

Arrival Date: ________ /________ / ________

Hotel Guest Signature __________________________________________________________________________________



State Exemption from Kansas Sales Tax (Tax exempt entity shall present the Kansas Department of Revenue-issued

tax-exempt entity sales tax exemption certificate showing state-issued exempt organization ID number; Form PR-

78SSTA; or Designated or Generic Exemption Certificate, ST-28.)

Tax Exempt Entity Name: ________________________________________________________________________________

Address: _____________________________________________________________________________________________

Street, P.O. Box or Rural Route City State ZIP Code

Kansas Exempt Organization ID Number: ________________________________ Expiration Date: ______ / ______ / ______



Federal Exemption from Kansas Sales Tax. I certify that I am on official federal government business and the purpose of my

stay is in conjunction with my performance of official duties as an officer or employee of the federal entity listed below.



Federal Exemption from Transient Guest Tax

Tax Exempt Federal Entity Name: _________________________________________________________________________

Address: _____________________________________________________________________________________________

Street, P.O. Box or Rural Route City State Zip Code

If you are paying with a GSA SmartPay Card, enter the 6

digit of the credit card number here: ___________________________

(Note: The digit must be a 0, 6, 7, 8 or 9 to qualify for exemption from Transient Guest Tax.)



Direct Purchase (Complete on state sales tax and federal transient guest tax exemptions.)

Complete this section as evidence of direct purchase for transient guest tax exemptions granted to the federal government. This section

can also be completed to document direct purchase for sales tax exemptions granted by the state of Kansas to tax-exempt entities.

_____ Credit Card Name on credit card _______________________________________

Must be name of exempt organization

_____ Direct Bill Billing Account Name/Number _____________________________________________________

_____ Check Check from ____________________________________________ Check Number: _____________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

PLEASE REFER TO THE INSTRUCTIONS FOR USE OF THIS CERTIFICATE ON THE REVERSE.

ST-28H (2-14)

INSTRUCTIONS FOR THIS EXEMPTION

CERTIFICATE, FORM ST-28H

WHO MAY USE THIS CERTIFICATE

Purchasers. Use this form to claim exemption from

sales tax or transient guest tax. All hotel guests must sign

the form where indicated. You must complete all fields on

the exemption certificate and provide the fully completed

certificate to the lodging facility in order to claim the

exemption. You are responsible for ensuring that you are

eligible for the exemption you are claiming. You will be held

liable for any tax and interest, and applicable penalties

imposed by the laws of this state on your purchase, if the

purchase is not legally exempt.

Hotels. You are required to maintain proper records of

exempt transactions and provide those records to the

Kansas Department of Revenue when requested.

You are relieved of responsibility for collecting and

remitting sales tax on the sale or sales for which the

purchaser provided you this exemption certificate, even if

it is ultimately determined that the purchaser improperly

claimed an exemption, provided all of the following conditions

are met.

1) All applicable fields on the exemption certificate are

completed by the purchaser or the required

information is captured and maintained. You have

the option to require the “direct purchase” portion

of the form to be completed to document direct

purchase for sales tax exemptions granted to tax-

exempt entities.

2) The fully completed exemption certificate (or the

required information) is provided to you at the time

of sale or within 90 days thereafter.

3) You do not fraudulently fail to collect the tax due.

4) You do not solicit customers to unlawfully claim an

exemption.

An exemption certificate need not be renewed or updated

when there is a recurring business relationship between

the buyer and seller. A recurring business relationship exists

when a period of not more than 12 months elapses between

sales transactions.

GENERAL EXEMPTION RULES

State Exemption from Kansas Sales Tax. The

purchase must be made by the exempt organization to

qualify for exemption. The exempt organization shall present

the Kansas Department of Revenue-issued tax-exempt entity

sales tax exemption certificate showing state-issued exempt

organization ID number (Form PR-78SSTA); or Designated

or Generic Exemption Certificate (ST-28) that authorizes

exempt purchases of services. The entire Form ST-28H,

including the direct purchase portion, must be completed

in full and signed by the guest. The name of the exempt

organization must correspond to the name on the registration

card or reservation. Exemptions granted by the State of

Kansas do not include exemption from transient guest tax;

therefore, transient guest tax must still be charged on lodging

that is exempt from Kansas sales tax.

Federal Exemption from Transient Guest Tax. Only

purchases made directly by the federal government are

exempt from transient guest tax. The federal government

charge card program currently includes the GSA SmartPay

Card. Purchases made with a GSA SmartPay Card for a

centrally billed account (CBA) (such as the GSA SmartPay

Purchase Card) would be considered as a direct purchase

by the federal government and exempt from transient guest

tax. Purchases made with a GSA SmartPay Card for an

individually billed account (IBA) (such as the GSA SmartPay

Travel Card) would not be exempt from transient guest tax.

Information on how to identify a GSA SmartPay Card and

determine whether it is for a CBA or IBA can be found on

the U.S. General Services Administration web site for the

GSA SmartPay Card program, smartpay.gsa.gov, and look

for the SmartTax Vendor Guide. Indirect purchases by

government travelers are not exempt from transient guest

tax. The name of the exempt federal agency/instrumentality

must be shown on the registration card or reservation of

the guest exempted from transient guest tax. The direct

purchase section must also be completed to validate the

direct purchase requirement.

Federal Exemption from Kansas Sales Tax. The rental

of sleeping rooms by hotels, motels, accommodation

brokers, etc. to the federal government, its agencies, officers

or employees is exempt from sales tax when the room rental

is made in association with the performance of official federal

government duties. This sales tax exemption on indirect

purchases by federal employees applies ONLY to the rental

of sleeping rooms. Evidence of proper form of payment by

the exempt agency is not required since direct purchase is

not required for this exemption. Transient guest tax is still

due when a federal government employee pays for the

sleeping room.

Foreign Diplomats. Foreign diplomats must provide their

foreign diplomat number issued by the Office of Foreign

Missions of the U. S. State Department on this exemption

certificate. Additional information about this exemption is

in our Notice 04-09 on our website.

TAXPAYER ASSISTANCE

Additional information about this exemption is in

Publication KS-1540, Business Taxes for Hotels, Motels

and Restaurants. All publications, notices and other written

advice on Kansas taxes and exemptions are available from

the Policy Information Library on our website,

ksrevenue.org. If you have questions you may contact

the Kansas Department of Revenue:

Taxpayer Assistance Center

Docking State Office Building, 1

Floor

915 SW Harrison

Topeka, KS 66625-2007

Phone: 785-368-8222

Streamlined Sales and Use Tax Agreement Certificate of Exemption (Kansas)

This is a multi-state form. Not all states allow all exemptions listed on this form. Purchasers are responsible for knowing if they qualify

to claim exemption from tax in the state that would otherwise be due tax on this sale. The seller may be required to provide this

exemption certificate (or the data elements required on the form) to a state that would otherwise be due tax on this sale.

The purchaser will be held liable for any tax and interest, and possibly civil and criminal penalties imposed by the member state, if the

purchaser is not eligible to claim this exemption. A seller may not accept a certificate of exemption for an entity-based exemption on a

sale made at a location operated by the seller within the designate state if the state does not allow such an entity-based exemption.

1.  Check if you are attaching the Multi-state Supplemental form.

 If not, enter the two-letter postal abbreviation for the state under whose laws you are claiming exemption.

2. 

Check if this certificate is for a single purchase and enter the related invoice/purchase order # .

Name of purchaser

Business Address City State ZIP

Purchaser’s Tax ID Number State of Issue Country of Issue

If no Tax ID Number

Enter one of the following

FEIN Driver’s License Number/State Issued ID Number Foreign diplomat Number

State of Issue: Number

Name of seller from whom you are purchasing, leasing or renting

Seller’s Address City

State

ZIP

3. Please print

4. Type of business. Circle the number that describes your business

01 Accommodation and Food Services 11 Transportation and Warehousing

02 Agricultural, Forestry, Fishing, Hunting 12 Utilities

03 Construction 13 Wholesale Trade

04 Finance and Insurance 14 Business Services

05 Information, Publishing and Communications 15 Professional Services

06 Manufacturing 16 Education and Health-Care Services

07 Mining 17 Nonprofit Organization

08 Real Estate 18 Government

09 Rental and Leasing 19 Not a Business

10 Retail Trade 20 Other (explain)

A Federal Government (department)

5. Reason for exemption. Circle the letter that identifies the reason for the exemption.

G Resale #

B State or Local Government (name) H Agricultural Production #

I Industrial Production/Manufacturing #

D Foreign Diplomat # J Direct Pay Permit #

E Charitable Organization # K Direct Mail #

F Religious or Educational Organization # L Other (explain)

Sign here. I declare that the information on this certificate is correct and complete to the best of my knowledge and belief.

Signature of Authorized Purchaser Print Name Here Title Date

PR-78SSTA

(Rev. 10/09)

Streamlined Sales and Use Tax Agreement Certificate of Exemption

Multi-state Supplemental

Name of Purchaser

STATE Reason for Exemption Identification Number (If Required)

TN*

*SSUTA Direct Mail provisions are not in effect for Tennessee.

The following nonmember states will accept this certificate for exemption claims that are valid in their respective state. SSUTA Direct Mail

provisions do not apply in these states.

___

are exe

The

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Des

The und

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_______________________________________________________________________________________

KANSAS DEPARTMENT OF REVENUE

TIRE RETAILER EXEMPTION CERTIFICATE

The undersigned tire retailer certifies that the new tires purchased from:

Seller

: _________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P. O. Box City State Zip + 4

mpt from Kansas Tire Excise Tax for the following reason:

new tires purchased with this exemption certificate will be resold by the undersigned tire retailer who is duly

tered by the Kansas Department of Revenue to collect the Kansas Tire Excise Tax levied by K.S.A. 65-3424d.

cription of tangible personal property or services purchased: ___________________________________

ersigned purchaser understands and agrees that if the new tires are used other than as stated above or for any other

not exempt from the tire excise tax, the undersigned tire retailer becomes liable for the tax.

Purchaser

: _________________________________________________________________________________________________

Business Name

Tire Excise

Tax Number: ___________________________________ Kansas Sales Tax Number: ______________________________

Address: ________________________________________________________________________________________

Street, RR, or P. O. Box City State Zip + 4

Authorized Signature: _____________________________________________________ Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHAT IS THE TIRE EXCISE TAX?

The tire excise tax is 25 cents on each new vehicle tire sold. New tires for automobiles, motorcycles, trucks, truck tractors, trailers, buses,

farm machinery, construction equipment, and other vehicles authorized or allowed to operate on Kansas public streets and highways are

subject to the tire excise tax. The tax also applies to the tires mounted on a new or used vehicle when the vehicle is sold at retail. Therefore,

most vehicle and implement dealers must also be registered to collect the tire excise tax. Additional information about the tire excise tax in

our Publication KS-1530, Kansas Tire Excise Tax, available from our office or website: www.ksrevenue.org.

WHO MAY USE THIS EXEMPTION?

Only those tire retailers that have a tire excise tax registration number and a Kansas Retailers’ Sales Tax Registration Number (see

explanation below) from the Kansas Department of Revenue may use this certificate.

WHAT TIRE PURCHASES ARE EXEMPT?

Only new tires intended for resale may be purchased exempt from the tire excise tax (as well as sales tax) with this certificate. A tire retailer

or vehicle dealer will use this certificate to purchase new tires exempt from both the tire excise tax and sales tax. The tire retailer will collect

the Kansas Retailers’ Sales and Tire Excise Tax when the tires are sold to the final user or consumer.

Used, recapped and retreaded tires are not subject to tire excise tax. A business selling used tires should use the Resale Exemption

Certificate, Form ST-28A, to purchase its inventory of used tires.

TAX REGISTRATION NUMBERS.

This certificate is an exemption from the tire excise tax and also acts as a resale exemption certificate. In order to be exempt, the buyer must

provide its Kansas tire excise tax registration number and its Kansas sales tax number. This certificate is not complete unless both

numbers are given. A tire excise tax registration number contains 11 digits, the last four of which are always “4000.” A tire excise tax

registration number format would be 000-0000-4000.

ST-28T (Rev. 7-08)

KANSAS DEPARTMENT OF REVENUE

U.S. GOVERNMENT, FEDERAL AGENCY OR INSTRUMENTALITY EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property or service purchased from:

Seller

: _____________________________________________________________________________________________________

Business Name

Address: __________________________________________________________________________________________________

Street, RR, or P.O. Box City State Zip + 4

is exempt from Kansas sales and compensating use and transient guest tax for the following reason:

K.A.R. 92-19-77 exempts all direct purchases by the United States, its agencies or instrumentalities for their use,

except when federal law provides that a particular agency or instrumentality will be subject to a state’s tax laws. To

qualify as a direct purchase, each bill, contract or other evidence of the transaction must be made out to the United

States, its agency or instrumentality, and payment must be made by a federal check, warrant or voucher.

Description of tangible personal property or services purchased: ___________________________________

__________________________________________________________________________________________

The undersigned understands and agrees that if the tangible personal property or services are used other than as stated above

or for any other purpose that is not exempt from sales, compensating use, or transient guest tax, the undersigned purchaser

becomes liable for the tax.

Purchaser

: _________________________________________________________________________________________________

Name of Federal Entity

Address: __________________________________________________________________________________________________

Street, RR, or P.O. Box City State Zip + 4

Authorized Signature: _____________________________________________________ Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS CERTIFICATE? Any agency or branch of the U.S. Government may use this certificate, such as the U.S. Post Office,

Internal Revenue Service, Department of Agriculture, Secret Service, FBI, American Red Cross, Federal Aviation Administration, and all

branches of the armed forces. The word “National” or “Federal” in the title of the entity does NOT necessarily mean it is an agency of the federal

government. For example, Federal Credit Unions are exempt, but National Banks are not federal agencies and thus are not exempt.

WHAT PURCHASES ARE EXEMPT? Any item of tangible personal property or labor services (except as noted below) may be purchased by

the federal government or any of its agencies exempt from sales and transient guest tax with this certificate. If the charges are billed directly to

and paid directly by the federal government, the transaction is exempt from Kansas sales tax as a direct purchase.

Sales made to and paid for by an agent, employee, or other representative of the United States, its agencies or instrumentalities are TAXABLE,

even when the agent or employee: 1) is on official business on behalf of the U. S. or any federal agency, 2) is on per diem (allowance for daily

expenses), 3) is on an expense account, or will otherwise be reimbursed by the federal agency, or 4) has or will receive federal moneys,

credits, or other assets to pay for the transaction. For example, a federal employee on per diem must pay sales tax on car rentals, unless using

one of the centrally-billed federal credit cards discussed below.

Exception for sleeping room rentals: The rental of sleeping rooms by hotels, motels, accommodation brokers, etc. to the federal government, its agencies,

officers or employees is exempt from sales tax when the room rental is made in association with the performance of official federal government duties. This

sales tax exemption on indirect purchases by federal employees applies ONLY to the rental of sleeping rooms. Transient guest tax is still due when a federal

government employee pays for the sleeping room.

Federal Credit Cards: The General Services Administration (GSA) issues “GSA SmartPay” credit cards to federal employees for official use.

Purchases by a federal employee with a “For Official Government Fleet Use Only” or “For Official Government Purchase Use Only” Voyager,

VISA, or MasterCard are exempt because these cards are centrally billed to the federal government. Purchases made using a “For Official

Government Travel Use Only” VISA or MasterCard are exempt only if the sixth digit of the account number is a 0, 6, 7, 8 or 9; if the sixth digit is

1, 2, 3, or 4, the charge is taxable. Purchases made with a “For Official Government Use Only” MasterCard (an integrated use card) are

exempt if the purchase is tangible personal property or fuel, repair services and other items related to vehicles, airplanes and boats. Other

purchases, such as travel expenses, are taxable if the sixth digit of the account number is a 1, 2, 3, or 4, and exempt if the sixth digit is 0, 6, 7,

8, or 9. For a more complete discussion of federal credit card transactions, obtain the policy document entitled “Federal Credit Cards.” It is

available from our offices or from the Policy Information Library on our website: www.ksrevenue.org.

CONSTRUCTION, REPAIR OR REMODELING PROJECTS. This certificate may also be used to purchase labor services exempt from

sales tax. HOWEVER, when the U. S. government or its agencies contracts for the repair, remodeling, or construction of a real property

project, it must request and obtain a Project Exemption Certificate from the department so that the contractor (such as a carpenter, electrician,

or plumber) may purchase materials for the project exempt from sales tax. In the absence of a Project Exemption Certificate, only the

contractor’s labor services are exempt as a direct purchase.

RETAINING THIS CERTIFICATE. Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28G (Rev. 1/09)

_____________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________

KANSAS DEPARTMENT OF REVENUE

STATEMENT FOR SALES TAX EXEMPTION ON ELECTRICITY, GAS, OR

WATER FURNISHED THROUGH ONE METER

Please type or print this form and send a completed copy WITH worksheets to your utility company. Complete a form for each meter on

which you are applying for an exemption.

1. ___________________________________________________ _______________________________________________

Address of meter location Utility account number

2. In accordance with the Kansas Retailers’ Sales Tax Act, the undersigned purchaser states that the (circle one: electricity, gas, water)

sold and furnished by (name of utility company) through

meter number at the above location issued for the following purposes based on annual consumption.

___________________________________________________________

________________________

3. __________________________________________________

Unless otherwise indicated, the uses below are exempt from state and local sales tax.



Agricultural use. (Electricity & gas subject to local sales tax.)



Severing of oil.



Ingredient or component part.



Irrigation of crops.



Movement in interstate commerce by railroad or public utility.



*Noncommercial educational radio or TV station.



Noncommercial residential use. (Electricity & gas subject

to local sales tax.)



*Nonprofit hospital.



*Nonprofit museum or historical society.



*Nonprofit zoo.



*Over-the-air free access radio or TV station. Only the

electricity used to produce the broadcast signal is exempt.

All other utility use is taxable.



Providing taxable services.



*Religious organization exempt from federal taxation

under section 501(c)(3) of the federal Internal Revenue

Code.

*Educational institutions and nonprofit trusts, nonprofit

endowment associations and foundations operated for the

sole benefit of an education institution.

Domestic violence shelters.

Consumed in the production, manufacturing, processing,

mining, drilling, refining, or compounding of tangible

personal property, or treatment of by-products or wastes

of any above processes.

Certain nonprofit corporations exempt from real estate

property tax – i.e., adult care homes (nursing homes);

private children’s homes (nursing home foster care, etc.);

housing for low and limited income elderly and disabled

persons (includes HUD housing projects); housing for the

elderly; and group housing for mentally ill, retarded, and

other disabled persons.

ATTACH A COPY OF THE “ORDER” FROM THE

BOARD OF TAX APPEALS.

uses electricity, gas or water for the following purpose (check one):

PURCHASER (Name of individual, company, or organization)



*Government entity.



*Other exempt entity

* Enter Sales Tax Exemption Identification Number _________________________________ Employer ID Number (EIN) _______________________________

4. Type of business ___________________________________________________________________________________

5. Describe the taxable service; movement in interstate commerce; agricultural use; or property produced, manufactured, etc.

NOTE: Sales of water to residential premises for noncommercial use or for agricultural use are NOT subject to local (city/county)

sales tax. However, all electricity and gas used to light, heat, cool, clean or maintain equipment, buildings or business facilities

(offices, plants, shops, warehouses) are FULLY TAXABLE. This includes, but is not limited to, electricity and gas for air

conditioners, all lighting (including production area), exhaust fans, freezers, heaters, refrigerators, other appliances and machines.

6. EXEMPT PERCENT % (See instructions.)___________

The undersigned purchaser agrees and certifies that: a) this statement is true, correct, and complete; b) the worksheets used to

determine the “Exempt Percent” will be kept by the undersigned and copies of the worksheets and this completed form will be

provided to the utility company); and, c) in the event there is a change in the “Exempt Percent”, a revised statement will be filed

immediately with the utility company. If the electricity, gas, or water exempted from taxation is determined to be taxable at a rate other than

stated above, the undersigned purchaser agrees to reimburse the utility company or KDOR for any amounts assessed as retailers’

sales or compensating tax, penalties, and/or interest.

Purchaser

Individual, company, or organization name

:_______________________________________________________ Phone No. _____________________________

Address:

Street, RR, or P.O. Box, City, State, Zip + 4

___________________________________________________________________________________________________

Email Address

___________________________________________________________________________ Date: _______________________

Printed Name *Authorized Signature

ST-28B (Rev. 4/15)

INSTRUCTIONS FOR COMPLETING FORM ST-28B

When gas, water, or electricity is furnished through one meter

for both taxable and exempt purposes, the purchaser is

responsible for determining the percentage of use exempt from

sales tax. The sample worksheet provided below will help you

to determine the percent of electricity, gas, or water that qualifies

for exemption. The worksheet you provide should list all taxable

and exempt equipment. If you have questions about this form,

contact our Utility Refund, Kansas Department of Revenue,

915 SW Harrison St., 1

Floor, Topeka, KS, 66625-0001, or call

(785) 296-2333.

AGRICULTURAL: Electricity and gas for agricultural use is

exempt from the state sales tax but not exempt from the local

taxes. Agricultural use does not include commercial operations

such as processing food or dairy products, off-farm grain storage

and marketing, lumbering, or use by a stockyard, slaughter

house, floral shop, or turf farm.

CERTAIN NONPROFIT CORPORATIONS: Sales of electricity,

gas, or water to properties which are exempt from property

taxation under K.S.A. 79-201b Second through Sixth are exempt

from state and local sales tax. Once the property is determined

to be exempt, copies of the “order” from the Board of Tax Appeals

and this completed exemption certificate (ST-28B) must be

provided to the utility company and the Kansas Department of

Revenue.

CONSUMABLES: The portion of electricity, gas, or water you use

that meets the following requirements is exempt from state and

local taxes: 1) essential or necessary to the process; 2) used in

the actual process at the location during the production activity; 3)

immediately consumed or dissipated in the process; and, 4)

used in the production, manufacturing, processing, mining,

drilling, refining, or compounding of tangible personal property or

the treatment of by-products or wastes of any above processes.

The following uses of electricity, gas, or water are not exempt

from sales tax: shipping, repairing, servicing, maintaining,

cleaning the equipment and the physical plant, and storing.

INGREDIENT OR COMPONENT PART: An example of electricity,

gas, or water which becomes an ingredient or component part

and qualifies for exemption is “water” that is part of the

ingredient in a beverage which is bottled and sold to a retailer

for resale.

RESIDENTIAL: If the electricity, gas, or water you consume is

for residential use only, you do not need to file this form. The

utility company automatically exempts you from paying state

sales tax (city and county sales tax still applies). However, if

the electricity, gas, or water you consume is partly for residential

purposes and partly for commercial use, you must determine

the percent of usage that is residential and file copies of your

worksheets and this completed form with your utility company

and the Department of Revenue. Utilities consumed in

commercial common areas such as an office, lounge, hallway,

laundry facility, storage area, swimming pool, etc., do not qualify

for exemption.

HOW MUCH OF MY UTILITY USE QUALIFIES FOR

EXEMPTION? You will probably need several sheets of paper

as worksheets. If your facility is serviced by more than one

meter, you need to complete a separate chart to determine the

percent of usage for each meter. If the facility is heated and

air-conditioned by a central unit, you may use the square footage

method to arrive at the residential percent of consumption for

heating and cooling. You may need the assistance of a plumber

or electrician to complete the formulas. Refer to the following

example and steps to determine your exempt percent.

E X

COLUMN 1

Type of Device

COLUMN 2

Rating of

Device

COLUMN 3

Estimated

Hours of

Use Per Day

COLUMN 4

Load Factor

L E

COLUMN 5

Number of Days

the Device is

Used Per Year

COLUMN 6

Usage Per Year

stated in kWh,

BTU, or Gallons

20 - light bulbs T 40 watts 10 1.00 324 2,592 kWh

1 - production machinery E 500 watts 10 .50 255 637.5 kWh

1. At the top of each page, place the headers as noted in the

example and complete the following information per column:

COLUMN 1—List each device that is pulling the utility.

COLUMN 2—Rating of each device.

COLUMN 3—Estimate the number of hours of use per day

(i.e., on average, twenty 40 watt light bulbs are on ten

hours per day, therefore, enter “10”).

COLUMN 4—Determine and enter load factor (i.e., when a

light bulb is on it pulls the full rate of 100% power but a

burner on the stove on “low” may only pull 30% load factor).

COLUMN 5—Number of days the device is used per year.

COLUMN 6—Determine usage per year stated in kilowatt-

hours (kWh), BTU, or gallons.

1000 watts = 1 kWh

Horsepower = .746 X H.P. = watts

Ten 100-watt bulbs burning 1 hour will use 1 kWh

1,000,000 BTU in 1 MCF

2. Indicate beside each type of device an “E” for exempt or a “T”

for taxable.

3. Multiply the quantity in column 1 by column 2 by column 3 by

column 4 by column 5 to arrive at the sum for column 6.

4. Add the usage per year (column 6) for all of the devices you

have indicated as “exempt” then add all of the usage per

year (column 6) for all the devices that you have indicated as

being “taxable.” Adding the exempt and taxable usage should

equal the total consumption per year as shown on your utility

bills for the last 12 months.

5. Divide the total number of exempt kWh by the total number

of kWh consumed in the last 12 months. This is the percent

of usage that is exempt from tax. Enter this amount on line 5

on the front of this form (ST-28B).

The instructions provided are intended to help consumers of electricity, gas, or water complete this form.

In case of discrepancies, the applicable law prevails.

ATTN: Hotels, Motels and Nursing Homes: Please include the occupancy rate

for the last 12 months of business with your study.

KANSAS DEPARTMENT OF REVENUE

VEHICLE LEASE OR RENTAL EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property or service purchased from:

Seller

: _________________________________________________________________________________________________

Business Name

Address: _________________________________________________________________________________________________

Street, RR, or P. O. Box City State Zip + 4

is being registered for the sole purpose of renting or leasing to others, and is exempt from Kansas sales or compensating

tax. I hereby certify that I am engaged in the business of renting and/or leasing motor vehicles and/or trailers.

Vehicle Rental

Excise Tax Number: _______________________________

Kansas Sales

Tax Number: _________________________________

Vehicle Description ________________________________________________________________________________

Year Make Model VIN#

The undersigned registrant understands and agrees that if this vehicle is used for purposes other than as stated above, the

registrant becomes liable for the tax.

Vehicle Registrant: _________________________________________________________________________________

Name of Vehicle Lessor

Address: _______________________________________________________________________________________

Street, RR, or P. O. Box City State Zip + 4

Authorized Signature: _____________________________________________________ Date: ________________

County: _________________________ **County Treasurer’s Signature: ____________________________________

Witness

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHAT IS THE VEHICLE RENTAL EXCISE TAX? The vehicle rental excise tax is 3.5% on the rental or lease of motor vehicles for 28

consecutive days or less. This tax is imposed in addition to the Kansas Retailers’ Sales tax (state and applicable local rate) due on each rental

or lease transaction.

WHO MAY USE THIS CERTIFICATE? Only those vehicle lessors who are registered with the Kansas Department of Revenue to collect the

Kansas Retailers’ Sales Tax and the Kansas Vehicle Rental Excise Tax may use this certificate to register the vehicle in Kansas without paying

sales or compensating use tax. The purchase is exempt because the sales tax is collected on each rental or on each monthly lease payment.

WHAT VEHICLES ARE EXEMPT? Only those vehicles that become a part of the lessor’s (registrant’s) rental or lease inventory are exempt.

Vehicles purchased by the vehicle lessor for personal or business use are TAXABLE because they will not be leased or rented to others.

REQUIRED REGISTRATION NUMBERS. In order for the vehicle to be exempt, the buyer/registrant must have a Kansas Vehicle Rental

Excise tax number and a Kansas Retailers’ Sales tax registration number. This certificate is not complete unless both numbers are given. A

typical vehicle rental excise tax number would be 2-000-0000-2000.

**Note: The county treasurer’s signature is not required when a car dealer is leasing a car from a rental agency in order to lease it in turn to a

customer.

RETAINING THIS CERTIFICATE. Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28VL (Rev. 7-08)

KANSAS DEPARTMENT OF REVENUE

VETERINARIAN EXEMPTION CERTIFICATE

The undersigned veterinarian certifies that the drugs and pharmaceuticals purchased from:

Seller

: _____________________________________________________________________________________________________

Business Name

Address: __________________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP + 4

are exempt from Kansas sales and compensating use tax for the following reason:

K.A.R. 92-19-42 exempts the sale of drugs and pharmaceuticals to veterinarians for use by them in the professional

treatment of animals or for resale.

Description of drugs and pharmaceuticals purchased:_____________________________________________

__________________________________________________________________________________________

The undersigned understands and agrees that if the drugs or pharmaceuticals are used other than as stated above or for any

other purpose that is not exempt from sales or compensating tax, the undersigned veterinarian becomes liable for the tax.

Purchaser: _________________________________________________________________________________________________

Name of Veterinarian

Address: __________________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP + 4

Authorized Signature: _____________________________________________________ Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS EXEMPTION? Only those persons licensed to practice veterinary medicine may use this certificate.

WHAT PURCHASES ARE EXEMPT? Only prescription drugs and pharmaceuticals are exempt from sales tax. To be exempt, the veterinarian

must also keep a copy of the prescription order on file. When dealing with a veterinary or medical supply house that sells not only drugs and

pharmaceuticals but other items not exempt (see below), a veterinarian may only use this certificate for the invoice items that are prescription

drugs.

WHAT PURCHASES ARE TAXABLE? Nonprescription drugs (such as vitamins, diet pills, or weight loss tablets) and nonprescription

salves and ointments are not exempt from sales tax. Veterinarians must pay sales tax on these and similar items used in their practice or

given to a client for outpatient use as part of an examination or consultation.

Veterinarians must also pay sales tax on their medical supplies and equipment. The following is a representative but not exclusive list of

items commonly purchased by veterinarians that are TAXABLE:

Bandages Medical instruments Operating room equipment

Dressings Needles Pet food (prescription and nonprescription)

Furniture Office equipment Syringes

Magazine subscriptions Office supplies Topical sprays and shampoos

If the above types of property are purchased from a retailer in another state and a sales tax equal the Kansas state and local sales tax rate

in effect where the item is used, stored or consumed has not been paid a Kansas compensating use tax is due on these purchases.

Additional information about Kansas compensating use tax is contained in Publication KS-1510, “Kansas Sales and Use Tax.” This

booklet is available from our office or website: www.ksrevenue.org

Veterinarians should purchase items intended for resale to pet owners (such as collars, leashes, pet foods, shampoos and topical sprays)

without tax using a Resale Exemption Certificate, Form ST-28A. In order to use a Resale Exemption Certificate, the veterinarian must

have a Kansas sales tax registration number in order to collect the sales tax from the customer.

RETAINING THIS CERTIFICATE. Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28V (Rev. 7-08)

_______________________________________________________________________________________

Name of Facility

_____________________________________________________________________________________________________________________________

KANSAS

Street Address City State

KANSAS DEPARTMENT OF REVENUE

WAREHOUSE MACHINERY AND EQUIPMENT EXEMPTION CERTIFICATE

The undersigned purchaser certifies that the tangible personal property and/or services purchased from:

Seller: _____________________________________________________________________________________________________

Business Name

Address: __________________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP+4

are exempt from Kansas sales and compensating use tax for the following reason:

K.S.A. 79-3606(fff) exempts all sales of material handling equipment, racking systems and other related machinery

and equipment used for the handling, movement or storage of tangible personal property in a warehouse or distribution

facility in Kansas, all sales of installation, repair and maintenance services performed on such machinery and equipment;

and all sales of repair and replacement parts for such machinery and equipment.

TO OBTAIN THIS EXEMPTION, COMPLETE LINES 1 THROUGH 3 AND THE CERTIFICATION.

1. Describe the qualified machinery or equipment (include make, model, type, or other identifying criteria):

____________________________________________________________________________________________________________________________

2. The equipment described in line 1 (is) (will be) located and used at the following Kansas warehouse or distribution

center.

(Circle one)

3. This certificate is for the: (Check all that apply)

 Purchase, lease, or rental of the material handling machinery or equipment described in line 1.

 Installation services of the equipment described in line 1.

 Repair or maintenance services on the equipment described in line 1.

 Repair parts, replacement parts, or accessories (describe; include model, type, etc.)

____________________________________________________________________________________

The undersigned understands and agrees that if the tangible personal property and/or services are used other than as stated

above or for any other purpose that is not exempt from sales or compensating tax, the undersigned purchaser becomes liable

for the tax.

Purchaser: _________________________________________________________________________________________________

Business Name

Purchaser’s Type of Business: _______________________________________________________________________________

Describe principal product(s) warehoused or distributed

Mailing Address: ____________________________________________________________________________________________

Street, RR, or P.O. Box City State ZIP+4

Authorized Signature: _____________________________________________________ Date:_________________

Printed Name: ______________________________________________________ Title: ________________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHO MAY USE THIS EXEMPTION? Only those businesses that operate a warehouse or distribution facility in Kansas may use this certificate. A warehouse or

distribution facility is a single, fixed location of buildings or structures in a contiguous area where storage or distribution operations are conducted that are separate

and apart from the business’ retail operations, if any, and which do not otherwise qualify for exemption as occurring at a manufacturing or processing plant or facility.

WHAT PURCHASES ARE EXEMPT? Material handling and storage equipment includes bins, forklifts, pallets, shelving, racking systems and other items used to

handle, move, or store tangible personal property. Also included are the equipment used by a public grain warehouse or other commercial grain storage facility to

aerate, clean, control dust, handle, process, refine, store, or otherwise treat the grain.

WHAT PURCHASES ARE TAXABLE? Equipment used at a warehouse or distribution center that is not directly used in the storage or handling of tangible personal

property is not exempt. Taxable items include, but not limited to: computers; communication and employee safety equipment; equipment used to clean the

building, to repair machinery or equipment, or to light, heat or cool the facility; and office furniture and equipment.

ADDITIONAL INFORMATION.A more complete discussion of this exemption is provided in the Department’s Notice 00-08, Kansas Exemption for Manufacturing

Machinery & Equipment. For tax assistance, consult our website or call the department at 785-368-8222.

RETAINING THIS CERTIFICATE. Sellers should retain a completed copy of this certificate in their records for at least three years from the date of sale. A seller is

relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has a recurring business relationship. A certificate

need not be renewed or updated when there is a recurring business relationship between the buyer and seller. A recurring business relationship exists when a period

of no more than 12 months elapses between sales transactions.

ST-203 (Rev. 7-08)

NOTES

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