(a) All retail
sales shall be presumed to be taxable. The burden of proving that a sale is
exempt from tax shall be on the vendor, unless the vendor takes an exemption
certificate from the purchaser in good faith.
(b) A vendor shall be deemed to have accepted
an exemption certificate in good faith when the vendor maintains the completed
certificate as part of its records, has ascertained the identity of the person
or entity who presents the certificate, and has not been shown by the
department by a preponderance of evidence to have had knowledge that the
presentation of the certificate was improper.
(c) Exemption certificates shall
substantially comply with the following format:
KANSAS EXEMPTION CERTIFICATE
I certify that the sale of tangible personal property or
service by:
(Vendor's name)
of ....... Kansas, to me or to the entity that I represent is
exempt from the tax levied by the Kansas retailers' sales and compensating tax
act for the following reasons:
As purchaser, I understand and agree that if the property or
service is used in any manner that is not exempt from tax under the act, the
entity that I represent becomes liable for the tax, as do I personally.
Date: _____
Purchaser:
(Signature and SSN or FEIN)
Name of the entity:
Address:
(d) Each exemption certificate issued by a
nonprofit entity claiming an exemption shall contain the name and address of
the entity; identify the subsection of
K.S.A. 79-3606, and amendments thereto, under which
the exemption is claimed; be signed by an officer, office manager, or other
administrator of the entity; and contain the drivers license number of the
signer. As a condition of honoring these exemption claims, a vendor may require
that payment be made on the entity's check, warrant, or voucher, or be charged
to the entity's account.
(e) A
resale exemption certificate may be issued by a registered retailer to claim
exemption from tax for purchases of property or services that the retailer
intends to resell on the normal course of business or that the retailer is
unable to determine will be resold or used by the retailer for some other
purpose. Resale exemption certificates shall substantially comply with the
following format:
KANSAS RESALE EXEMPTION CERTIFICATE
(Name of purchaser)
(Address of purchaser)
I hereby certify that: I hold valid retailer registration No.
______ issued pursuant to the Kansas sales and compensating tax law;
I am engaged in the business of selling:
The tangible personal property described herein which I shall
purchase from:
(Vendor's name)
will be resold by me in the form of tangible personal property;
I further agree that, if any of the property is used for any
purpose other than retention, demonstration, or display while holding it for
resale in the regular course of business, I will report and pay Kansas state
and local sales tax to the Kansas Department of Revenue, based on the amount
that I paid for the property.
Description of property to be purchased:
Date: _____
(Signature of purchaser or authorized agent and SSN or FEIN)
(f) Each purchaser claiming
a resale exemption shall complete the certificate either by listing the
particular property claimed to be for resale or by describing the types of
property that are resold in the normal course of the purchaser's business. When
a purchaser buys property for resale that is not of the type normally resold in
the purchaser's line of business, the vendor may require the purchaser to issue
a separate resale exemption certificate that lists the property and states that
it is being purchased for resale. A vendor may require a purchaser to provide a
copy of its registration certificate as a condition for honoring a resale
exemption certificate.
(g) Vendors
shall keep a record of each exempt sale of property or services made, showing
the date, amount, consumer's name and address, item or service sold, and other
pertinent information needed to support each deduction taken on a return. Each
vendor shall make such records and exemption certificates available to the
department for inspection. Each exemption certificate shall be retained by the
vendor for at least three years after the end of the year in which the
certificate was last honored or until the final determination of any audit or
assessment that includes a period during which the certificate was honored.
