Kansas – State Imposes Sales and Use Tax Requirements to Fullest Extent Allowed


As of October 1, 2019, ALL out-of-state sellers making sales for delivery into Kansas are required to register with the Department of Revenue and collect and remit Kansas sales or use tax.

According to Department of Revenue Notice 19-04, “Kansas imposes its sales and use tax collection requirements to the fullest extent permitted by law.” Until the middle of last year, it could only require businesses with a physical presence in the state to collect and remit sales tax. The same was true for all states.

However, the Supreme Court of the United States found the physical presence rule to be “unsound and incorrect” on June 21, 2018. Its decision in South Dakota v. Wayfair, Inc. enables South Dakota — and by extension other states — to base a remote sales tax collection obligation solely on a seller’s sales or transaction volume in the state (economic nexus).

In the last year, most states with a general sales tax have enacted an economic nexus law. Not Kansas. Instead, the Department of Revenue is applying Wayfair to an existing statute: K.S.A. 79-3702(h)(1)(F), which defines a “retailer doing business in Kansas” as “any retailer who has any other contact with this state that would allow this state to require the retailer to collect and remit tax under the provisions of the constitution and laws of the United States.”

This is significant.


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CPA Practice advisor
by gail cole
September 3, 2019