Kansas imposes a 6.5% retailers sales tax on:
-
Sale of tangible personal property
-
Labor services to install or repair tangible personal property
-
Admission to entertainment establishments
Sales tax is paid by the final consumer of taxable goods or services. Businesses who purchase products to resell do not pay sales tax on these purchases, as they will collect sales tax from the final consumer when sold. These businesses complete a reseller’s exemption form and present this to the vendor to avoid paying sales tax.
The business that collects sales tax is responsible for collecting and remitting sales tax to the Kansas Department of Revenue. Sales tax money is property of the State of Kansas, therefore they can and will use force to collect sales tax that has not been properly remitted. The State of Kansas collects all sales tax, then remits the city or county’s portion directly to them on a monthly basis.
There is no exclusion from an entity collecting sales tax. There are entities that are exempt from paying sales tax on purchases, but there is no exclusion for collecting sales tax on taxable goods or services.
Every scenario is different, therefore this general advice cannot be applied directly to your situation and is not intended to be tax advice. If you have concerns about sales tax, it is best practice to consult with a tax professional.