Kansas Administrative Regulations › Agency 92 - KANSAS DEPARTMENT OF REVENUE › Article 19 - KANSAS RETAILERS' SALES TAX › Section 92-19-25b - Exemption certificates

Current through Register Vol. 43, No. 28, July 11, 2024
(a) All retail
			 sales shall be presumed to be taxable. The burden of proving that a sale is
			 exempt from tax shall be on the vendor, unless the vendor takes an exemption
			 certificate from the purchaser in good faith.
(b) A vendor shall be deemed to have accepted
			 an exemption certificate in good faith when the vendor maintains the completed
			 certificate as part of its records, has ascertained the identity of the person
			 or entity who presents the certificate, and has not been shown by the
			 department by a preponderance of evidence to have had knowledge that the
			 presentation of the certificate was improper.
(c) Exemption certificates shall
			 substantially comply with the following format:
KANSAS EXEMPTION CERTIFICATE
I certify that the sale of tangible personal property or
				service by:
(Vendor's name)
of ....... Kansas, to me or to the entity that I represent is
				exempt from the tax levied by the Kansas retailers' sales and compensating tax
				act for the following reasons:
As purchaser, I understand and agree that if the property or
				service is used in any manner that is not exempt from tax under the act, the
				entity that I represent becomes liable for the tax, as do I personally.
Date: _____
Purchaser:
(Signature and SSN or FEIN)
Name of the entity:
Address:
(d) Each exemption certificate issued by a
			 nonprofit entity claiming an exemption shall contain the name and address of
			 the entity; identify the subsection of
			 K.S.A.
			 79-3606, and amendments thereto, under which
			 the exemption is claimed; be signed by an officer, office manager, or other
			 administrator of the entity; and contain the drivers license number of the
			 signer. As a condition of honoring these exemption claims, a vendor may require
			 that payment be made on the entity's check, warrant, or voucher, or be charged
			 to the entity's account.
(e) A
			 resale exemption certificate may be issued by a registered retailer to claim
			 exemption from tax for purchases of property or services that the retailer
			 intends to resell on the normal course of business or that the retailer is
			 unable to determine will be resold or used by the retailer for some other
			 purpose. Resale exemption certificates shall substantially comply with the
			 following format:
KANSAS RESALE EXEMPTION CERTIFICATE
(Name of purchaser)
(Address of purchaser)
I hereby certify that: I hold valid retailer registration No.
				______ issued pursuant to the Kansas sales and compensating tax law;
I am engaged in the business of selling:
The tangible personal property described herein which I shall
				purchase from:
(Vendor's name)
will be resold by me in the form of tangible personal property;
I further agree that, if any of the property is used for any
				purpose other than retention, demonstration, or display while holding it for
				resale in the regular course of business, I will report and pay Kansas state
				and local sales tax to the Kansas Department of Revenue, based on the amount
				that I paid for the property.
Description of property to be purchased:
Date: _____
(Signature of purchaser or authorized agent and SSN or FEIN)
(f) Each purchaser claiming
			 a resale exemption shall complete the certificate either by listing the
			 particular property claimed to be for resale or by describing the types of
			 property that are resold in the normal course of the purchaser's business. When
			 a purchaser buys property for resale that is not of the type normally resold in
			 the purchaser's line of business, the vendor may require the purchaser to issue
			 a separate resale exemption certificate that lists the property and states that
			 it is being purchased for resale. A vendor may require a purchaser to provide a
			 copy of its registration certificate as a condition for honoring a resale
			 exemption certificate.
(g) Vendors
			 shall keep a record of each exempt sale of property or services made, showing
			 the date, amount, consumer's name and address, item or service sold, and other
			 pertinent information needed to support each deduction taken on a return. Each
			 vendor shall make such records and exemption certificates available to the
			 department for inspection. Each exemption certificate shall be retained by the
			 vendor for at least three years after the end of the year in which the
			 certificate was last honored or until the final determination of any audit or
			 assessment that includes a period during which the certificate was honored.