On March 17, the Kansas Legislature approved House Bill 2387 waiving the sales tax on fencing material used to reconstruct agricultural fences destroyed by the 2016 and 2017 wildfires through an exemption and refund program. The law took effect March 23. See Notice 17-01 here.
The program works in two ways.
Sales tax refund: individuals who have purchased fencing materials to be used in the reconstruction of fences surrounding agricultural land on or after Jan. 1, 2017 through Dec. 31, 2018, may apply for a sales tax refund. They will need a sales receipt or invoice showing the amount of sales tax paid on the purchases and to fill out this refund form (ST-3). If you have questions about how to complete this refund form, contact the sales tax refund phone number at 785-296-7108, or email KDOR_Audit.Funds@ks.gov
Statutory exemption certificate: Anyone reconstructing, repairing or replacing agricultural fencing destroyed by the wildfires or who is contracted to do so may obtain a statutory exemption certificate. With the certificate, shown at the time material is purchased, the holder will not have to pay sales tax on the purchase. The exemption applies to sales tax on fencing material and lease of machinery or equipment for the project. To apply for a statutory exemption certificate fill out this application form (PR-70FEN) or call 785-296-3081 or email Kathleen.Smith@ks.gov.
- Request for Exemption Certificate for Fencing Materials and Services (PR-70FEN)
- Kansas Application for Sales Tax Refund of Fencing Materials and/or Services (ST-3)
Answers to Frequently Asked Questions
If I live in a non-fire-affected area and buy fencing material to replace agricultural fences in a wildfire affected area, are my purchases exempt from sales tax?
Yes, but the statutory exemption certificate must be presented at the time of purchase. If you do not have a project exemption certificate, you can apply for a refund of the sales tax paid on the purchases.
What constitutes fencing materials?
Examples of fencing materials that qualify for exemption:
- Barbed wire
- Concrete mix
- Post caps
- T-post clips
- Screw hooks
- Electric fence posts
- Electric insulators
Examples of items that don't qualify for the exemption/refund:
- Sand sponges
- Welding tools
- Oil for chainsaw
- Magnetic leveler
- Ratchet ties
If you purchased fencing materials prior to obtaining an exemption certificate and need to file for a sales tax refund or have questions concerning how to complete the form, you may contact the sales tax refund phone number at 785-296-7108, or email KDOR_Audit.Funds@ks.gov.
NOTE: This only applies to the reconstruction, replacement or repair of existing agricultural fencing.
If I lost fencing in the 2016 wildfires, can I still apply for the refund or exemption certificate?
Yes, the law applies to wildfires in calendar years 2016 and 2017 and to purchases through Dec. 31, 2018.
To what parts of the state does this law apply?
The law applies statewide to those affected by wildfires occurring during calendar years 2016 and 2017 and the purpose for which is to enclose land devoted to agricultural use.
If I already purchased fencing material and paid sales tax, can I get a refund?
Yes, to get the sales tax refund on the purchase you must fill out this refund form st-3, provide a sales tax receipt or invoice showing the amount of sales tax paid and sign the affidavit attached to the form. The purchase must have been made on or after Jan. 1, 2016.
May I use this exemption certificate to replace the fence around my home?
No, this exemption is only for purposes of enclosing land devoted to agricultural use.
If I have agricultural property and the fence that encloses the agricultural property also encloses my residence, will this exempt all of the fence or only the agricultural fence?
You may only utilize the exemption for the property devoted to agricultural use, but the portion of the fence around your home does not qualify for this exemption.
Are tools, non- agriculture machinery and equipment that I purchased to replace or repair my fence exempt from sales tax?
No, tools, new non-agriculture machinery and equipment – such as a skid-steer – purchased to replace or repair fencing is not exempt from the sales tax. However, sales tax on machinery and equipment you rent or lease to replace, repair or rebuild agricultural fencing is exempt from sales tax.
If I have questions not answered here, who should I contact?
If you have questions about the refund form or process, you may contact the sales tax refund phone number at 785-296-7108, or email KDOR_Audit.Funds@ks.gov
If you have questions about the statutory exemption certificate, call 785-296-3081.