Kansas: Remote Sellers to Collect Sales and Use Tax, July 2013
- May 14, 2013 | Gail Cole
Remote sales tax was all the rage last week, when the Senate passed the Marketplace Fairness Act of 2013. The buzz has died down a bit now, as the bill is being held at the desk of the House. That said, some states are not waiting for federal legislators to act. Kansas, for example, has passed click-through nexus legislation of its own; it is scheduled to take effect July 1, 2013.
The new law "expands the definition of a retailer doing business in this state for purposes of sales and use tax collection to include those retailers and affiliated persons who enter into certain agreements with Kansas residents. Such agreements include those entered into with one or more residents of Kansas under which the resident, in exchange for some consideration, directly or indirectly refers potential customers from Kansas… ." Retailers whose Kansas affiliates generate $10,000 or less in annual sales are not required to collect sales and use tax.
In addition, "any vendor selling or leasing tangible personal property to the state is required to register as a retailer for Kansas sales tax purposes…."
Finally, "any ruling, agreement, or contract between a retailer and the State of Kansas executive branch concerning a sales and use tax exemption, despite the presence of a warehouse or distribution center, is null and void unless specifically approved by each chamber of the Legislature." That means no secret agreements made late at night over brandy and cigars. A dated image, but you get the point.
Last week, the Kansas Department of Revenue issued a special notice regarding the implementation of SB 83. The notice includes portions of the bill, including deleted language (strike-through) and new language (in italics). The DOR reminds:
"[I]t is the duty of every retailer doing business in this state making taxable sales of tangible personal property for use, storage or consumption int his state, to collect from the purchaser the Kansas state and local use tax due on the transaction."
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