Kansas – New Common Carrier Exemption Certificate Available

2/11/2013

SALT Report 2133 – The Kansas Department of Revenue has revised two sales and use tax publications regarding exemption certificates and motor vehicle transactions to include the Interstate Common Carrier Exemption Certificate Form ST-28J. The exemption from sales tax is limited to the following three types of interstate common carriers:

  • Those that transport regulated goods or persons in interstate commerce,
  • Those that are engaged in the interstate transportation of goods exempt from regulation, such as livestock and grain, and
  • Those that haul both Regulated and Exempt commodities

In order to qualify as a common carrier the motor carrier must be actively engaged in the business of hauling persons or freight for others, and advertise that it is engaged in the business of hauling persons or freight for others.

Motor carriers will not qualify as common carriers and may not claim the exemption if the motor carrier only hauls goods or materials for a separately incorporated business.  Or, if they haul goods or materials for a business that has an ownership interest in the motor carrier and uses or consumes the goods or materials that are being hauled in construction, oil and gas well exploration, or other similar activities.

The Information Guides provide additional information on taxable and exempt items and services.

For Further Information

Kansas Department of Revenue – Information Guide KS-1520

Kansas Department of Revenue – Information Guide KS-1526