Sales of utility services are exempt to qualifying nonprofit facilities in Kansas.

The sale of natural gas, electricity, heat, and water to a nonprofit nursing home or other nonprofit housing facility is exempt from Kansas and local retailers’ sales tax as long as the facility holds a qualified property tax exemption issued by the Kansas Board of Tax Appeals. Sales of the same utilities to a for-profit nursing home or housing facility or to nonprofit nursing home or housing facility that has not obtained the appropriate property tax exemption are subject to the Kansas and local retailers’ sales tax. (Revenue Ruling No. 19-2003-1, Kansas Department of Revenue, Office of Policy & Research, January 3, 2003)

Posted on December 15, 2003