The Kansas Department of Revenue’s Policy Office has released retailers’ sales and compensating use tax exemptions, effective January 1, 2005.

Retailers must obtain an exemption certificate and retain it for at least three (3) years from the date of purchase. The new exemptions include sales of the following:

1. Aircraft repair, modification and replacement parts, and sales of services for the remanufacture, modification and repair of aircraft;
2. Hearing aids and their replacement parts;
3. Custom computer software and the sale of the services of modifying, altering, updating, or maintaining custom computer software.

The Department also announced policies for complying with the Streamlined Sales Tax Project (SSTP). Retailers must be in compliance by January 1, 2005. Retailers’ sales and compensating use tax remittances must be made to the DOR using either the automated clearing house credit or debit procedures. If the due date for filing falls on a legal bank holiday or weekend day, the due date will be the next business day.

In addition, if electronic fund transfers fail, alternative “same day” payments are available. Taxpayers must contact the DOR and provide their taxpayer I.D. number, tax type code, tax period end date, payment amount, and any penalty to initiate the “same day” payment process.

If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com