On May 20, 2022, the Kansas Supreme Court ruled that a taxpayer had met his burden of demonstrating that he had changed his domicile from Kansas to Florida. If he were deemed a resident of Kansas, he would have owed over $42 million of back taxes, interest, and penalties, in part from the sale of
Kansas provides guidance regarding remote seller nexus
Kansas’s remote seller law became effective July 1, 2021, one of the last states to adopt sales tax nexus requirements for remote sellers. As part of implementing the new law, the Department of Revenue recently issued guidance to remote sellers providing that while a remote seller is not required to collect tax on its first
Kansas Legislature Overrides Governor’s Veto of Marketplace Collection and GILTI Tax Break Bill
On May 3, the Kansas Legislature overrode Governor Kelly’s veto of SB 50. As a result, marketplace facilitators will now be required to collect sales and use tax beginning July 1, 2021 if they exceed a $100,000 nexus threshold. The legislation also requires marketplace facilitators to collect 911 fees beginning April 1, 2022. Please
Kansas governor vetoes economic nexus and marketplace facilitator bill
On April 16, 2021, Governor Laura Kelly vetoed S.B. 50, which would require sales and use tax collection by marketplace facilitators and would set a remote seller tax collection threshold. Marketplace facilitators would be required to collect and remit these taxes if, during the current or immediately preceding calendar year: (1) the marketplace facilitator
Kansas legislature passes marketplace and remote seller collection bill
On March 30, 2021, the Kansas legislature passed S.B. 50, which would require sales and use tax and transient guest tax collection by marketplace facilitators selling or facilitating the sale of property or services subject to these taxes, as well as set a remote seller tax collection threshold. Marketplace facilitators are required to collect
Quick Update: Kansas, California and New York
In this episode of the SALT Shaker Podcast, host Chris Lee discusses a Kansas proposal to enact a marketplace facilitator law, two residency cases from California, and a New York decision concerning sales tax treatment of certain advertising services.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
Kansas Governor announces marketplace facilitator proposal
On February 9, 2021, Governor Laura Kelly announced a plan to add market facilitator collection and remittance to other tax related legislation, Senate Bill 22. The governor noted that Kansas is one of only three states that has not enacted marketplace facilitator provisions and that this change would allow Kansas “…to collect from fewer
Kansas House of Representatives introduces bill establishing sales tax on digital property and subscription services
On February 3, 2021, the Kansas House of Representatives introduced H.B. 2230, which would expand the state’s sales tax to include all sales of digital property and subscription services, regardless of whether the purchaser has a permanent right to use the property or whether the right to use the property is conditioned on continued
Kansas governor proposes sales tax on digital products and marketplace facilitator tax collection
On January 13, 2021, the governor of Kansas released her budget report for fiscal year 2022, which would require marketplace facilitators to begin collecting retail sales and compensating use taxes on sales to Kansas customers on July 1, 2021. The budget also contains a proposal to impose sales tax on all sales of digital property
Kansas Legislative Committee Continues to Work on Marketplace Seller and Facilitator Legislation
During a series of remote committee hearings, the Kansas House Committee on Taxation discussed revisions and amendments to marketplace facilitator legislation. Kansas is currently one of the few states without a marketplace facilitator or remote seller law, and the only state that has a remote seller rule without any thresholds for application. As initially drafted,