State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Kansas (KS)

KS Sales Tax - Name of Tax and General Application:

Kansas imposes a tax on the privilege to engage in the business of tangible personal property at the retail level and on providing taxable services. This tax is called a "sales tax". In addition there is a tax imposed on using, storing or consuming tangible personal property that has not already had sales or use tax applied to it in any state. This tax is called a "use tax".

KS Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Kansas requires retailers who are "doing business" in the state to collect and pay sales and use tax. Doing business in Kansas entails (1) selling tangible personal property for use, storage or consumption in the state, (2) maintaining an office or other place of business in the state, (3) having any representative or agent operating in the state, or (4) regularly soliciting sales of products in the state by catalogs, flyers, radio, mail or other advertising.

KS Local Tax - Do Localities Impose Tax?

Yes, Kansas imposes local sales tax.

KS Resale Certificate Renewal Agreements:

A resale certificate is proved by Kansas (form CR-16) as well as certificates of generic design as long as they contain all the same information required on the CR-16 form, including, purchaser's name and address, SSN or FEIN and a description of the goods being purchased.

KS Resale Certificate Renewal Periods

There is no mention of an expiration period. In the case of blanket certificates, they must be renewed or updated by the seller when there is a recurring business relationship.

KS Statute of Limitations

Three years from the date the return was filed. In the case of a fraudulent return, two years from the date fraud was discovered.