Kansas Administrative Regulations › Agency 92 - KANSAS DEPARTMENT OF REVENUE › Article 19 - KANSAS RETAILERS' SALES TAX › Section 92-19-6a - Retailer's duties when a retail business moves, ceases operation, or changes its name, ownership, or form of ownership

Current through Register Vol. 43, No. 28, July 11, 2024
(a) If a retailer
			 ceases to do business or if a change of ownership occurs through the sale of a
			 business or through a change in the legal form of business ownership, the
			 retailer shall notify the department of the date of the last day of business
			 operation or the date of the change of ownership. The retailer shall return its
			 certificate for cancellation, remit all taxes, and file its final return during
			 the month that follows the sale or the change of ownership of the business. The
			 retailer shall preserve its business records for three years from the end of
			 the calendar year or fiscal year, whichever is later, in which the retailer
			 files its final return.
(b) When
			 there is a sale or other change of ownership of a business, the entity
			 acquiring ownership shall secure a certificate in its name before beginning
			 business as the new owner.
(c)
			 Each retailer shall promptly notify the department of any change in location,
			 mailing address, business name, or trade name. Upon receipt of this
			 notification, the retailer shall be issued an amended certificate by the
			 department, or the old certificate shall be canceled and the retailer shall be
			 issued a new certificate by the department.
(d)
(1) For
			 purposes of sales tax registration, a change in ownership of a business shall
			 be deemed to occur when a business is sold or when a business changes its legal
			 form of ownership from a sole proprietorship, partnership, corporation, or
			 other legal form to another form of ownership. A change in ownership of a
			 general partnership shall include the withdrawal, substitution, or addition of
			 one or more general partners if the general partnership continues as a business
			 organization and the change in the number of partners is equal to or greater
			 than 50 percent.
(2) For purposes
			 of sales tax registration, a change in ownership shall be deemed not to occur
			 when there is a sale of all or part of the common stock in a corporation. A
			 change in ownership of a limited partnership shall be deemed not to occur if
			 the limited partnership continues as a business organization and either of the
			 following occurs:
(A) A withdrawal,
			 substitution, or addition of one or more limited partners in a partnership; or
(B) a withdrawal, substitution, or
			 addition of one or more general partners if the number of general partners
			 being changed is less than 50 percent.
(3) When control of a corporation is
			 transferred to a different corporation or owner, or when new corporate officers
			 are added or replaced, the corporation shall notify the department of the
			 changes although no new sales tax certificate shall be required. When the
			 change in the number of general partners is less than 50 percent, the
			 partnership shall notify the department of the changes although no new sales
			 tax certificate shall be required.
(4) Partners and officers who leave a
			 business may, in their individual capacity, notify the department of the change
			 to avoid possible claims of personal liability being made against them for
			 reporting periods that occur after they have left the business.