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K.A.R. 92-19-72

Retail sales between related entities.

Official textus-ks/regssos.ks.govlast amended 15 subsections
Summarize

# (a)

Each interdepartmental transfer of tangible personal property and taxable services between various departments of a single legal entity shall not constitute a sale subject to sales tax.

# (b)

Each transfer of tangible personal property and taxable services between separate legal entities for use or consumption, and not for resale, shall be taxable, even though the entities:

# (1)

Share common principals or ownership and operations;

# (2)

share the same business location;

# (3)

file consolidated income tax returns for federal and state income purposes; or

# (4)

do not enjoy a profit or expense as a result of the transaction.
When a transaction would be subject to sales tax if the transaction were between two separately owned and operated entities, the commonality of the two entities is irrelevant, and sales tax is imposed on the transaction between the two related entities.

# (c)

“Separate legal entities” shall mean entities which are recognized as individual entities either in fact or at law. Each transfer of tangible personal property and taxable services between separate legal entities for use or consumption, and not for resale, shall include:

# (1)

Transfers between individuals and partnerships;

# (2)

transfers between individuals and corporations;

# (3)

transfers between individuals and unincorporated associations;

# (4)

transfers between partnerships and corporations;

# (5)

transfers between partnerships and unincorporated associations;

# (6)

transfers between partnerships;

# (7)

transfers between unincorporated associations and corporations; and

# (8)

transfers between corporations, whether between sister corporations or parent and subsidiary corporations. (Authorized by K.S.A. 79-3618; implementing K.S.A. 1986 Supp. 79-3602; effective May 1, 1988.)

Amendment history

(Authorized by K.S.A. 79-3618; implementing K.S.A. 1986 Supp. 79-3602; effective May 1, 1988.)

Source: official source document (2022 KAR Book 4, Kansas Secretary of State)

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In this article (40 sections)
  1. 92-19-55 · 92-19-55
  2. 92-19-55a · 92-19-55a
  3. 92-19-55b · Operating leases.
  4. 92-19-56 · 92-19-56
  5. 92-19-57 · Sales tax on motor fuels, special fuels, liquefied…
  6. 92-19-58 · Revenue rulings.
  7. 92-19-59 · Private letter rulings.
  8. 92-19-61 · 92-19-61
  9. 92-19-61a · Retailers’ responsibility to collect sales tax; presumption…
  10. 92-19-62 · Warranties, service and maintenance contracts.
  11. 92-19-63 · Limitations.
  12. 92-19-64 · 92-19-64
  13. 92-19-64a · Responsible individuals.
  14. 92-19-65 · Medical equipment and supplies.
  15. 92-19-66 · Contractors, subcontractors and repairmen; purchases of…
  16. 92-19-66a · 92-19-66a
  17. 92-19-66b · Labor services.
  18. 92-19-66c · Purchase and lease of tools and equipment.
  19. 92-19-66d · 92-19-66d
  20. 92-19-66e · Project exemptions.
  21. 92-19-67 · 92-19-67
  22. 92-19-68 · 92-19-68
  23. 92-19-69 · Caterers.
  24. 92-19-70 · 92-19-70
  25. 92-19-71 · Mobile phone, cellular phone, beeper and similar services.
  26. 92-19-72 · Retail sales between related entities.
  27. 92-19-73 · Membership fees and dues.
  28. 92-19-74 · Accounting periods; monthly filing of returns.
  29. 92-19-75 · 92-19-75
  30. 92-19-76 · Sales to political subdivisions of the state of Kansas.
  31. 92-19-77 · Sales to the United States, its agencies and…
  32. 92-19-78 · 92-19-78
  33. 92-19-79 · Oil, gas and water wells.
  34. 92-19-80 · 92-19-80
  35. 92-19-81 · Abatement of final tax liabilities.
  36. 92-19-82 · Direct pay permits.
  37. 92-19-200 · 92-19-200
  38. 92-19-201 · Refund of sales tax paid upon food; definition of domicile;…
  39. 92-19-202 · Refund of sales tax paid upon food; right of representative…
  40. 92-19-203 · Refund of sales tax paid upon food; death of claimant…
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