Kansas Administrative Regulations › Agency 92 - KANSAS DEPARTMENT OF REVENUE › Article 19 - KANSAS RETAILERS' SALES TAX › Section 92-19-3a - Credit sales, conditional sales, and other sales and service transactions that allow deferred payment

Current through Register Vol. 43, No. 28, July 11, 2024
(a)
			 For purposes of this regulation, K.A.R. 92-19-3b, K.A.R. 92-19-3c, and K.A.R.
			 92-19-55b, the following definitions shall apply:
(1) "Conditional sale" means a sales
			 transaction made pursuant to a written agreement that is treated as a sale of
			 goods for federal income tax purposes in which the buyer gains immediate
			 possession or control of the goods but the seller or a financial institution
			 retains title to or a security interest in the goods to ensure its future
			 receipt of full payment before clear title is transferred to the buyer in
			 possession or control of the goods. Conditional sale contracts include
			 "financing leases."
(2) "Credit
			 charge" means interest, finance, and carrying charges from credit extended on
			 the sale of goods or services, if the amount is separately stated on the
			 invoice, bill of sale, or similar document given to the buyer.
(3) "Credit sale" means a sale of goods or
			 services under an agreement that provides for the deferred payment of the
			 purchase price. Credit sales shall include sales made under the following:
(A) An installment contract that transfers
			 title and possession of the goods to the buyer at the time of purchase, but
			 allows payment to be made in periodic installments; and
(B) a revolving credit contract that extends
			 a line of credit to a buyer that allows purchases to be charged against the
			 account and provides for periodic billing that requires payment of part of, and
			 allows for payment of all of, the credit balance owed by the buyer.
(4) "Creditor" means an entity or
			 person to whom money is owed.
(5)
			 "Financial institution" means a bank, savings and loan, credit union, or other
			 finance company licensed under the provisions of the Kansas uniform consumer
			 credit code as specified in
			 K.S.A.
			 79-3602, and amendments thereto, for isolated
			 or occasional sales.
(6) "Financing
			 lease" means a conditional-sale contract that is denominated a lease, but that
			 is intended to finance a lessee's purchase of goods or its continued possession
			 of goods under a sale-leaseback agreement. A lessor shall be presumed to have
			 entered into a financing lease if the lessor accounts for the lease transaction
			 as a financing agreement for federal income tax purposes. The term "capital
			 lease" shall be considered synonymous with "financing lease."
(7) "Goods" has the same meaning as "tangible
			 personal property," which is specified in
			 K.S.A.
			 79-3602, and amendments thereto.
(8) "Invoice" means a paper or electronic
			 bill of sale or similar dated document containing an itemized list of goods or
			 services sold to the buyer that specifies the selling price of the goods or
			 services and complies with the requirements of
			 K.S.A.
			 79-3648 and amendments thereto, when an
			 itemized charge is taxable.
(9)
			 "Layaway sale" means a transaction in which property is set aside for future
			 delivery to a customer who makes a deposit, agrees to pay the balance of the
			 purchase price over a period of time, and, at the end of the payment period,
			 receives the property. An order shall be deemed accepted for layaway by the
			 seller when the seller removes the property from normal inventory or clearly
			 identifies the property as sold to the purchaser.
(10) "Operating lease" has the meaning
			 specified in K.A.R. 92-19-55b.
(11)
			 "Purchase price" has the meaning of "sales or selling price" specified in
			 K.S.A.
			 79-3602, and amendments thereto.
(12) "Rain check" means that the seller
			 allows a customer to purchase an item at a certain price at a later time
			 because the particular item was out of stock.
(13) "Repossessed goods" means goods sold on
			 credit that a retailer or other creditor reclaims as allowed by law after a
			 buyer or debtor defaults on installment payments.
(14) "Returned goods" means goods that a
			 buyer returns to a retailer upon the parties' cancellation of the original
			 sales contract when the retailer either credits or refunds the full selling
			 price of the goods and associated sales tax to the buyer. Returned goods shall
			 not include goods accepted in trade or barter, goods repossessed or recaptured
			 by legal process, and goods secured pursuant to the consumer's abandonment of
			 the sales contract or other voluntary surrender.
(15) "Sales tax" or "tax" means Kansas
			 retailers' sales tax, Kansas retailers' compensating use tax, and any local
			 retailers' sales or use tax that is levied in addition to the state
			 tax.
(16) "Services" has the
			 meaning specified in
			 K.S.A.
			 79-3602, and amendments thereto.