Kansas State Sales Tax

Obtaining a sales tax exemption number?

Submit a request to the Department of Revenue using their On-line Business Center (see below). You may also apply by submitting a written request describing the organization, whether it is organized as a nonprofit 501 (c)(3), its purpose, contact name, address, and phone number. Mail the letter to the Office of Policy and Research, Docking State Office Bldg - 2nd floor, 915 SW Harrison, Topeka KS 66612.

On-Line Business Center: The Department of Revenue has developed an Internet application that provides a convenient way to report name and address changes, to cancel a certificate, to print copies of your existing certificate, or to apply for a new certificate.

Access to the Tax-Exempt Entity Exemption Certificate application is available through the On-Line Business Center at the department's website, www.ksrevenue.org. On the home page, under "Business Tax" is a link to the On-Line Business Center. Click on the link to access your account. If you have not used the On-Line Business Center before, you will need to register and create an account. Once the account is created, you will click on "Certificates" to perform the functions mentioned.

Avoiding sales tax on building projects

If you are contracting for the repair, remodeling or construction of church property, you must obtain a Project Exemption Certificate from the Kansas Department of Revenue so that the contractor, subcontractor or repairman (carpenter, electrician, plumber, etc.) may purchase materials for the project on a sales-tax exempt basis. The new sales tax-exempt numbers being issued to churches are not valid for purchases made by contractors. To apply for a project exemption, submit Form PR-76, Request for Project Exemption. If you do not obtain a project exemption certificate, only the contractor's labor will be exempt from sales tax. Any materials the contractor purchases will be subject to sales tax and the contractor will pass that expense on to the church.

Applications for project exemption certificates are available through the Kansas Department of Revenue.

Collecting and remitting sales tax

You may be surprised know that your church is required to collect and remit sales tax on fundraising activities if you have more than one per year. According to the Kansas Department of Revenue publication "Kansas Sales Tax and Compensating Use Tax" (publication KS-1510), sales tax is to be collected on:

  1. The sale, rental or lease of tangible personal property (food, clothing, furniture, books, etc.)
  2. Charges for labor to install, apply, service or maintain tangible personal property.
  3. The sale of admissions to places of amusement, entertainment, or recreation.

Under the publication, there are certain situations in which sales tax is NOT collected and Kansas churches are limited to one qualifying event each year.  The guidelines can be found in the Kansas Sales Tax and Compensating Use Tax guide, Publication KS-1510 (Rev. 12/2020), starting on page 8, under “Isolated or Occasional Sales” section.

It should be noted, if the church asks for a “Free Will Donation” instead of charging a specific amount, the church would not be required to collect/remit sales tax.  If the church has a suggested donation, this is considered a suggested price which would be subject to sales tax and would NOT be considered exempt.

If you have questions regarding the sales tax rules, please contact the Kansas Department of Revenue at 785-368-8222. You may also obtain information via their website at: www.ksrevenue.org.