Sales, Use and International Tax Articles
Sales, Use and International Tax Activity Update - July 2010
Kansas Gets in Step with SST and 21st Century Filing
The Kansas Department of Revenue has revised a notice on destination-based sourcing rules to reflect 2010 Streamlined Sales and Use Tax (SST) Agreement conformity legislation that contained provisions governing "advertising and promotional direct mail" and "other direct mail.” Sourcing examples for these types of direct mail are included.
Added material also provides that delivery charges for "direct mail" are not subject to tax if separately stated on the invoice or other billing document provided to the purchaser. This holds true with respect to separately stated delivery charges for (1) retail sales that include the printing and delivery of "direct mail," including sales characterized as the sale of a service when the sale results in printed material meeting the definition of "direct mail," (2) retail sales of services for only the mailing or delivery of "direct mail" not printed or sold by the delivery or mailing service provider, and (3) retail sales of services for the development of billing information or data processing services that result in printed materials being delivered or mailed to a mass audience when the costs of the printed materials are not billed directly to the recipients. "Direct mail" is printed material delivered or distributed by U.S. mail or other delivery services to a mass audience or to addressees on a mailing list provided by the purchaser or at the purchaser's direction when the cost of the items is not billed directly to the recipients. "Direct mail" includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material.
Notice 03-04, Kansas Department of Revenue, revised June 25, 2010.
The Notice 03-04 can be viewed on the Kansas Department of Revenue Web site.
New Electronic Filing Requirements
In accordance with Senate Bill 430 passed by the 2010 Kansas Legislature and subsequently signed into law by the Governor, businesses will be required to submit Retailers’ Sales, Compensating Use taxes, and Withholding Tax returns electronically. This new law takes effect July 1, 2010. To ensure a smooth transition for Kansas businesses the Kansas Department of Revenue (KDOR) will continue to provide personalized paper forms as needed through September 30, 2010.
The Kansas Notice Rev 6-10 can be viewed on the Kansas Department of Revenue Web site.
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