Frequently Asked Questions About City and County Sales Tax
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.
Can the rate of tax be increased or decreased or a change be made to the designated use of the tax revenue?
Can a city or county obtain information about sales tax payments made by specific retail establishments?
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.
((local population/total county population)+(local property tax/total county property tax))/2
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.
Who pays for reprogramming computers and cash registers for businesses in a jurisdiction imposing a city or county tax?
Applying the City or County Sales Tax
Can a city or county with a local sales tax impose the tax on items and services not subject to state sales tax?
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.