Sales Tax Base On Motor-Fuel Purchases Notice Form printable pdf download

Sales Tax Base On Motor-Fuel Purchases Notice Form

Mark Parkinson, Governor

Joan Wagnon, Secretary

________________________________________________________________

Notice 09-06

(Revised April 20, 2010)

Sales Tax Base on Motor-fuel Purchases

Includes Federal Excise Taxes

K.S.A. 2009 Supp. 79-3606(a) provides:

The following shall be exempt from the [sales] tax imposed by this act:

(a) All sales of motor-vehicle fuel or other articles upon which a sales

or excise tax has been paid, not subject to refund, under the laws of this

state . . . .

This provision means that Kansas retailers' sales tax does not apply to the retail sale of

motor fuel that is subject to the provisions of the Kansas motor-fuel tax act (Act), unless

the motor fuel is not taxed under the Act because of an exemption in K.S.A. 2009 Supp.

79-3408(c) or the department is refunding the motor-fuel tax to the final consumer for

off-road use or for another nontaxable use.

K.S.A. 2009 Supp. 79-3408(c) lists the motor fuels whose sale or delivery are subject to

the requirements of the Act but that are not taxed under it. These listed fuels include

aviation fuel and dyed-diesel fuel. The Act taxes the use, sale, or delivery of gasoline and

clear-diesel fuel, but allows the motor-fuel tax to be refunded for off road or other exempt

use. K.S.A. 2009 Supp. 79-3453. The different types of motor fuels and the tax per gallon

are listed in K.S.A. 2009 Supp. 79-34,141.

When Kansas motor-fuel tax does not apply to fuel such as dyed-diesel fuel or aviation

fuel, Kansas sales tax applies to its retail sale unless the purchaser/final consumer

provides the retailer with a sales-tax exemption certificate. See K.S.A. 2009 Supp. 79-

3606(a)(Motor fuel is subject to sales tax unless the motor fuel excise tax has been paid.)

Sales tax exemption certificate forms are available for download from our web site:

. The appropriate form should be completed by the consumer and

given to the fuel retailer to claim the sales tax exemption. Examples of off-road use of

dyed-diesel fuel and aviation fuel whose sale to a final consumer is exempt from Kansas

sales tax are: (1) dyed-diesel consumed by farmers in their field work; (2) dyed-diesel

consumed by rock crushing equipment in quarry operations; (3) aviation fuel consumed

by scheduled airlines; and (4) dyed-diesel stored in a separate tank that powers an

interstate motor carrier's refrigeration unit.

When a sale of motor fuel is subject to sales tax, the retailer is required to collect sales

tax on the "sales or selling price" of the fuel. This amount includes any Federal fuel

OFFICE OF POLICY AND RESEARCH

DOCKING STATE OFFICE BUILDING, 915 SW HARRISON ST., TOPEKA, KS 66612-1588

Voice 785-368-8222 Fax 785-291-3614

Sales Tax Base On Motor-Fuel Purchases Notice Form