Sales & Use Tax Exemptions

There are many exemptions to sales and use taxes in Kansas the following represent a few of the major exemptions.

• Manufacturing machinery and equipment used to create, store, or distribute goods intended for sale.

• Tangible personal property, including electricity, gas, and water, if immediately consumed or dissipated during manufacturing.

• Tangible personal property which becomes an ingredient or component part of goods or services produced for sale.

• Labor charges incurred in connection with the original construction of a building or facility.

• The cost of building materials and items of equipment permanently installed by businesses using Industrial Revenue Bonds (IRBs).

• Tangible personal property or services purchased to construct, reconstruct, or remodel a business that qualifies for sales tax exemptions.

• Machinery, equipment, and certain other tangible property purchased by businesses qualifying for Job and Investment Tax Credits or the High Performance Business Incentive Program.

• Materials, equipment, and services purchased when building, expanding, or renovating a business which qualifies for the job expansion and investment credits of the Kansas Enterprise Zone Act.