Thursday, June 08, 2006

State Library Seeks Clarification on Sales Tax Exemption

Legislation (Senate Bill 404, section ooo) just passed by the 2006 legislature gives libraries and library Friends groups a sales tax exemption on the sale of tangible personal property. The legislation appears straight forward, but a spate of questions regarding what organizations, what tangible personal property and what type of sales events are covered by the legislation point to the need for clarification.

In response to that need, the State Library will ask the Kansas Department of Revenue (KDOR) for help in understanding the new law. KDOR can respond in several ways including a formal “Revenue Ruling” and “Private Revenue Letter”. How KDOR responds is somewhat dependent on how we submit the question. We will explore the best options with the staff at KDOR and act accordingly.

It is difficult to predict how long the process might take, but several weeks to a month certainly would not be out of the question.

Watch this blog for a post that includes KDOR’s clarifying response.