Streamlined Sales Tax Overview

The Kansas Legislature adopted legislation to bring Kansas sales and use tax laws into conformity with the uniformity provisions states are required to enact as part of the Streamlined Sales and Use Tax Agreement. This agreement comes from the Streamlined Sales Tax Project, the combined effort of participating states and the business community working to establish uniformity among the states’ sales tax laws. The Streamlined Sales Tax Project seeks to respond to the concerns of merchants about the difficulties in dealing with different states’ sales tax laws, and to State and local government concerns about lost revenues from remote retail sales by mail order, telephone and the Internet.

The most significant changes to Kansas sales tax law are the sourcing rules. Retailers must use destination-based sourcing rules to correctly identify the local sales tax to charge on a retail sales transaction. Under the destination-based sourcing rules, sales generally are sourced to the location where the purchaser receives the item sold. Retailers who ship or deliver sold items to their customers’ locations will be required to collect the local sales tax in effect where delivery is made.

For more information visit www.streamlinedsalestax.org or visit the Federation of Tax Administrators web site which has links to each state’s tax agency for access to information on other states Sales and Use taxes.