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Kansas Reduces Vendor Discounts for Missouri and Nebraska Retailers


 Feels good.

It is not uncommon for states to reciprocate certain favors with one another. For example, New York allows full reciprocal credit for sales and use tax with states that allow full reciprocal credit with New York. It is of the “scratch my back and I’ll scratch your back” philosophy, and it is typical.

Kansas allows vendor discount rates for Missouri, Nebraska, and Oklahoma retailers who collect Kansas use tax. It seems that in a couple of states, it is scratching more than getting scratched (so to speak). As a result, it is reducing discount rates for vendors in those states, effective January 1, 2015.

Missouri

Missouri currently provides to retailers designated or required to collect the Missouri use tax a discount of 2% of the tax timely remitted each month as reimbursement for the cost of collecting the tax.  An agreement between Missouri and Kansas dating from 1968 extends to Missouri retailers a Kansas vendor discount rate of 3% of the tax remitted (when remittance is timely).

Effective for returns filed on or after January 1, 2015, the Kansas vendor discount rate for Missouri retailers is reduced to 2% of the Kansas Retailers’ Compensating Use Tax timely remitted. Form CT-9U should be used.

Nebraska

Nebraska currently provides to retailers designated or required to collect the Nebraska use tax a discount of 2.5% of the first $3,000 of use tax timely remitted each month as reimbursement for the cost of collecting the tax. An agreement between Nebraska and Kansas dating from 1968 extends to Nebraska retailers a Kansas vendor discount rate of 3% of the tax remitted (when remittance is timely).

Effective for returns filed on or after January 1, 2015, the Kansas vendor discount rate for Nebraska retailers is reduced to 2.5% of the first $3,000 of Kansas Retailers’ Compensating Use Tax timely remitted. Form CT-9U should be used.

Oklahoma

There is no change in the vendor discount rate for Oklahoma retailers who collect and remit the Kansas Retailers’ Compensating Use Tax. It remains 1% of Kansas tax timely remitted with a maximum cap of $2,500 per month.

Additional information.

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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.