05-a-010 - Sales Tax Exemptions (November 17, 2004)
|INFORMATIONAL CIRCULAR NO. 05-A-010|
|DATE:||November 17, 2004|
|SUBJECT:||Sales Tax Exemptions|
|A & R CONTACT:||Vendor Listing/Copies of State Exemption Certificate:|
|Cheryl Stewart||(785) 296-3521||(firstname.lastname@example.org)|
|Dept of Revenue Contact:||Steven Brunkan||(785) 291-3580||(email@example.com)|
|SUMMARY:||No later than January 1, 2005, a new Tax-Exempt Entity Exemption Certificate must be filed with your vendors.|
In accordance with Section 21 of House Bill 2375, 2004 Legislative Session, the Department of Revenue has issued a Tax-Exempt Entity Exemption Certificate to every State agency. Each agency has been assigned a unique Kansas Exemption Number (hereafter referred to as the "agency exemption number") which is included on the certificate. The certificates were mailed with a letter of instruction to each agency's business/finance manager the week of November 7. The letter contains a PIN required for account access.
To assist state agencies in this process, the Department of Revenue has agreed to issue one number to the State of Kansas (hereafter referred to as the "state exemption number") that can be used by all agencies. It will contain the Director of Account and Reports' signature, the state's FEIN number, and include a generic description of the type of purchase. These state exemption number certificates will initially be distributed at the November 18, 2004 ASTRA meeting. If your agency will not be in attendance at this meeting, you can obtain a copy of the state exemption number certificate by contacting Cheryl Stewart as noted in the above contact information. Agencies will then provide a copy of this certificate to vendors upon request.
You must make copies of the original certificate and distribute to vendors as needed. There are no electronic versions of the exemption forms available.
In an attempt to ease the transition, Accounts and Reports will send a state exemption number certificate to vendors who have been issued a STARS payment in the last 30 days. This state exemption number can be used for all transactions in which the payment is processed through STARS. For payments that agencies make from local funds, i.e., the check/warrant has the agency name as the account holder, vendors may require an exemption certificate on file which contains the agency exemption number described in the first paragraph of this circular.
Accounts and Reports will make the listing of vendors to whom we send a state exemption certificate available to agencies on our web site. Agencies will complete an electronic request form. After the request is reviewed by Accounts and Reports staff and we have verified that the person requesting the data has a valid need for the information, we will e-mail the vendor listing in a zipped Excel file. This electronic request capability will be available by December 6, 2004.
Your agency may choose to use your agency exemption number to obtain the sales tax exemption for all or a portion of transactions processed by your agency. However, if you have no need for the agency exemption number certificate, and plan to use the state exemption number for all purchases, you should access the On-line Business Center as noted on the letter which accompanied your agency exemption number certificate and cancel your agency exemption number and destroy the original paper copy.
The exemption certificates indicate that the person authorized to sign the certificate must enter their driver's license (DL) number on the certificate. However, the Department of Revenue indicates that State agencies may use the State's FEIN on the agency exemption certificate as an alternative to the DL Number when all agency purchases are made through a central office. If an agency allows multiple divisions to make purchases, then the appropriate person in each division should sign and provide their DL number (not the FEIN) on the agency exemption certificate.
On-line, using the PIN assigned on the letter, you can report contact name and address changes, print copies of your existing certificate, or apply for a new certificate at a different location. At www.ksrevenue.org, find under "Your Business", click on "Sales Tax Exemption Certificate" and link to the On-Line Business Center. Details on this process are provided in the letter received from the Department of Revenue with your original agency exemption number.
If your agency requires an agency exemption number, and you are unable to locate the original certificate and letter, please contact the Department of Revenue and give them contact information and a mailing address to be used to send the replacement certificate.
Questions and comments regarding the sales tax exemption certificate can be directed to Steven Brunkan of the Department of Revenue.