Kansas: Remote Sellers Required to Collect Beginning October 1, 2019

The Kansas Department of Revenue recently issued Notice 19-04, which addresses the state’s sales tax collection requirements for remote sellers and marketplace facilitators. Recall, during the 2019 regular legislative session, bills adopting economic nexus standards for remote sellers and marketplace facilitators were vetoed by Governor Kelley. In the notice, the Department states that Kansas imposes its sales and use tax collection requirements to the fullest extent possible under the U.S. Constitution. Specifically, Kansas law provides that a retailer doing business in Kansas is “any retailer who has any other contact with this state that would allow this state to require the retailer to collect and remit tax under the provisions of the constitution and laws of the United States.” As such, per the notice, remote sellers that are not already registered to collect and remit must do so by October 1, 2019.  The notice does not outline a specific dollar or sales transactions threshold that must be met before the seller is required to register.

In addition to remote sellers, the notice also broadly defines and addresses marketplace facilitators. Per the notice, a marketplace facilitator should contact the Department about entering into a voluntary compliance agreement with the state. Thus, the notice does not appear to directly mandate that marketplace facilitators start collecting and remitting.  For more information on Notice 19-04, please contact Jeff Cook at (816)-802-5225.