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Kansas: Remote Sellers to Collect Sales and Use Tax, July 2013

  • May 14, 2013 | Gail Cole

 Kansas click-through nexus to take effect July 1, 2013.

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.

Governor Sam Brownback (R) signed SB 83 into law on April 16. The summary of the bill states that it "establishes 'click-thru' nexus language relating to sales and use tax."  

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."

Is your business prepared to collect remote sales tax?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.