Policies

Organizations qualified to receive this exempt status are listed in the last section of the document on right. This certificate is issued by Kansas and it will have a Kansas exemption number and an expiration date. The information completed will have to provide NTE with a copy with both seller information completed and signature from exempt entity including federal EIN number. If an out of state exempt entity makes a purchase, they will not have this form. Instead, they should use form ST-28.

Only those non Kansas tax exempt entities that do not have a Kansas tax exempt entity exemption number may use this certificate to claim an exemption. Kansas based entities are required to have a Kansas tax exempt entity exemption number.

This certificate is only to be used by organizations that are registered with Kansas to collect Kansas sales tax. The Kansas sales tax registration number is required. This form is to be used only for purchases of inventory items to be resold. Resale buyers from other states that are not registered in Kansas use the multi-jurisdictional exemption certificate, ST-28M.

Any business buying merchandise that qualifies as "property which is consumed" will use this certificate. The definition of this term is that the item must be essential and necessary to the process, used in the actual process, and be consumed within one year. This certificate would have limited application to NTE such as the sale of oil, grease, etc.

Used by any business registered for sales tax in Kansas which buys raw materials or parts that are an ingredient or component part. These items include containers, labels and shipping cased used to distribute property manufactured for sale. This certificate would have limited application to NTE. Non Kansas buyers not registered for Kansas sales tax should use ST-28M.

Used by farmers, ranchers, feedlots, nurseries, farm machinery and equipment is exempt provided only used in farming, ranching, etc. Repair of farm machinery is exempt. However, air compressors and tanks, all terrain vehicles, fencing materials, garden hoses, lawnmowers and welding equipment is taxable.

Used by any agency or branch of the U.S. Government including all branches of the armed forces. The charges must be billed directly to the federal government and paid directly by the federal government agency. Description of the items purchased must be inserted in the exemption certificate. Federal credit card purchases must by evidenced by an exemption certificate.

To be used by businesses and wholesalers from other states that do not have a Kansas sales tax number to furnish for a Kansas ingredient or component part exemption certificate or a Kansas resale purchase. This form is not to be used by companies registered for Kansas sales tax.

To be used by any manufacturing or processing business engaged in an integrated product operation at a plant located in Kansas. Applies to the purchase, installation or repair of integrated production machinery equipment.

To be used by public or private elementary or secondary schools or nonprofit educational institutions. Exemption applies to all direct purchase, rental or lease of tangible personal property and services, except purchases of goods for human habitation and indirect purchases by a contractor for a real property project.

To be used by the state of Kansas, political subdivisions of the state of Kansas (Kansas cities, counties, townships, special districts), nonprofit hospitals, and blood, tissue, or organ banks. Exemption applies to all direct purchase, rental or lease of tangible personal property and services, except purchases of goods for human habitation or purchases made for any business activity specifically taxable, and indirect purchases by a contractor for a real property project as noted in the document.