Frequently Asked Questions About City and County Sales Tax
A majority of voters must approve a city or county sales tax in an election.
A city sales tax may be imposed in increments of 0.05%, not to exceed 2.0% for general purpose and not to exceed 1.0% for special purposes.
A county sales tax may be imposed in increments of 0.25%, not to exceed 1.0%. Counties may impose an additional sales tax of up to 1% for health care services. Certain counties have statutory authority to exceed the cap as contained in K.S.A. 12-189.
- There are several ways the proposition may get on the ballot:
- By submission of the governing body of a city or the board of county commissioners of a county;
- By a petition signed by not less than 10% of the electors of the city or by a petition signed by not less than 10% of the electors of a county who voted at the last preceding election for the office of Secretary of State.
- County questions may get on the ballot by a 2/3 vote of the governing body of each city within the county which contains a population of not less than 25% of the county or by a 2/3 vote of the governing body of a taxing subdivision which contains not less than 25% of the property taxes levied within the county.
The election can be held at any time. A mail ballot may also be used.
The registered voters of the jurisdiction.
City and county sales taxes are enacted at the start of each calendar quarter, January 1, April 1, July 1, and October 1.
City or county officials need to notify the Department of Revenue at least 90 days prior to the implementation of a local sales tax.
General sales taxes are in effect until repealed by the city or county or until the sunset imposed in the ballot question is reached. City special purpose sales taxes expire after 10 years.
General sales tax revenue can be used for any lawful purpose. Special purpose sales tax revenue can only be used for purposes specified in the ballot question.
Yes, a city or county sales tax may be repealed by the governing board of the city or county.
Yes. The city or county would need to place a question on the ballot as described earlier to change the rate or purpose of a local sales tax.
Changes to local sales tax rates are made quarterly on January 1, April 1, July 1, and October 1.
For assistance in estimating local sales tax revenue, please call or e-mail Amy Kramer at the Department of Revenue, Office of Research and Analysis at 785-291-3580 or firstname.lastname@example.org.
For assistance in reviewing local sales tax revenue estimates, please call or e-mail Amy Kramer at the Department of Revenue, Office of Research and Analysis at 785-291-3580 or email@example.com.
Distribution of Funds
There typically is a two-month delay from the time a retailer collects the sales tax to it being distributed to the city or county. This allows time for the business to remit the sales tax return when it is due the 25th of the following month and for it to be processed by the Department of Revenue. Modifications may impact distributions such as non-payment by a retailer or audit activity by the Department of Revenue.
For example, sales taxes collected in July will be remitted to the Department of Revenue in August. The Department will process these funds for inclusion in the September distribution.
A city will receive the actual amount of city tax collected. County general sales tax is distributed between the county and the incorporated cities in the county based on a formula. Certain counties referenced in statute may also impose a special sales tax where up to 100% of the revenue is dedicated to the specified project.
For a countywide tax, half of the revenue is distributed among the county and incorporated cities in the county based on the total tangible property tax levies in each jurisdiction for the previous year. The other half of the revenue is distributed among the county and incorporated cities in the county based on the population in each jurisdiction.
((local population/total county population)+(local property tax/total county property tax))/2
The State Treasurer’s Office distributes the funds to the city or county levying the tax. The city portion of a countywide sales tax is distributed directly to the city receiving the funds.
Distributions are released by the State Treasurer’s Office in time to settle in the recipient’s bank account by the last day of the month.
Quarterly sales tax rate changes are published at least 60 days prior to the tax being imposed at https://www.ksrevenue.org/salesratechanges.html.
Notice is also included under the “Current News” section of the Customer Service Center home page. Additionally, the Department of Revenue updates the splash screen text for the sales and use tax accounts to advise users of every quarterly tax change.
Businesses should regularly monitor the website and Customer Service Center news to keep up-to-date on all rate changes.
Businesses are responsible for all programming changes and costs.
Applying the City or County Sales Tax
Yes, with the exception of residential and agricultural use utilities. Residential and agricultural use utilities are subject to local sales taxes but not state sales tax.
No, a city or county must follow the taxability laws established by the state.
Sales taxes are imposed on gross receipts from:
- the retail sale, rental, or lease of tangible personal property;
- charges for labor services to install, apply, repair, service, alter, or maintain tangible personal property; and
- admissions to places providing amusement, entertainment, or recreation services.
Kansas sales tax rates are published with the state and local rate combined. Retailers are not required to separate which portion of the tax collected is for each entity.
If you sell tangible personal property, admissions, or provide taxable services you must be registered with the Kansas Department of Revenue to collect state and local sales taxes.
Kansas combines the state and local rates so that all sales taxes collected are remitted on one return. A business may file annually, quarterly, monthly, or pre-paid monthly based on the estimated sales tax liability of the business. Refer to KDOR publication KS-1510 Sales Tax and Compensating Use Tax for further information on collecting and remitting sales tax. https://www.ksrevenue.org/pdf/pub1510.pdf.