Kansas ~ Sales and Use Tax: Exemption and Refund Enacted for Agricultural Fencing Destroyed by Wildfires

CCH Tax Day Report

Kansas sales and use tax on sales of tangible personal property and services purchased during calendar years 2017 and 2018 necessary to reconstruct, repair, or replace any fence used to enclose land devoted to agricultural use that was destroyed by wildfires that occurred during calendar years 2016 and 2017 is waived through an exemption and refund program. Under the exemption certificate program, any person who contracts for such reconstruction, repair, or replacement is required to get an exemption certificate from the Kansas Department of Revenue for the project involved. The exemption certificate will allow the person or contractor to purchase materials and lease machinery and equipment for such a project. In addition, persons or contractors who perform such work are required to provide the certificate number to all suppliers, and those suppliers are required to execute invoices with that certificate number. Upon completion of the project, the contractor must provide to the person that obtained the exemption certificate a sworn statement, on a form to be provided by the Director of Taxation, that all purchases made were entitled to the exemption. Under the refund program, individuals who purchase fencing materials to be used in the reconstruction of fences surrounding agricultural land on or after January 1, 2017 through December 31, 2018, may apply for a sales tax refund. Those individuals will need a sales receipt or invoice that shows the amount of sales tax paid on the purchases.

H.B. 2387, Laws 2017, effective March 23, 2017

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