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Stay informed about Kansas Sales Tax updates in 2024! From reduced tax rates to new nexus rules and marketplace facilitator responsibilities, these changes impact businesses of all sizes. Learn compliance tips to avoid penalties and streamline your tax reporting process.

Transcript

1. Kansas Sales Tax Kansas Sales Tax Updates - 2024 Updates - 2024 trykintsugi.com
2. Introduction Introduction to Kansas Sales Tax (2024) Welcome to our detailed guide on Kansas Sales Tax for 2024! Today, we’ll be covering key changes, updates, and essential information for businesses and individuals alike. This presentation will break down Kansas’ state and local sales tax adjustments, along with guidelines for compliance.
3. Kansas Sales Tax Rates (2023 vs. 2024) In 2023, the state-level sales tax stood at 6.5%. Local municipalities could add between 1.0% to 4.0% in local taxes, creating a combined rate ranging from 7.5% to 10.5%. In 2024, the state sales tax has been slightly reduced to 6.35%, with local rates staying the same (1.0% to 4.0%). As a result, the total combined sales tax range is now 7.35% to 10.35%. State-level tax decreased slightly by 0.15%, lowering the overall combined tax rate range.
4. To calculate Kansas sales tax, businesses should follow these steps Determine the Taxable Amount: Add the sale price and shipping charges (if applicable). State Sales Tax Rate: Multiply the taxable amount by 6.35% (for 2024). Local Sales Tax Rate: Multiply by the specific local tax rate for your location. Total Sales Tax: Add the state and local taxes together. Breakdown of Kansas Sales Tax Calculation Let’s also consider some important categories for sales tax calculations E-commerce: For remote sellers exceeding $100,000 in sales in Kansas, sales tax must be collected. SaaS: Software as a Service (SaaS) is taxable in Kansas at the combined state and local rate. Services: Most services are exempt from tax unless otherwise specified.
5. Understanding Use Tax What is Use Tax? Applies to out-of-state purchases used in Kansas State Use Tax Rate: 6.5% Compliance: Businesses file monthly, quarterly, or annually Use tax applies to: Tangible personal property Digital goods Taxable services
6. In 2024, Kansas introduced several updates to its In 2024, Kansas introduced several updates to its sales tax system: sales tax system: State Sales Tax Decrease: The general state sales tax rate was reduced from 6.5% to 6.3%. Sales Tax on Groceries: From July 1, 2024, the tax on groceries is reduced to 4%, down from the general rate of 6.5%. Digital Goods: The sales tax on digital services, like streaming, remains at 6.3%. Taxation of Professional Services: From March 2024, a 6.3% sales tax will apply to certain professional services that were previously exempt. Elimination of Exemption on Data Services: As of September 1, 2024, data processing and information services no longer enjoy a lower tax rate and will be taxed at the full 6.3% rate. Recent Changes to Kansas Sales Tax (2024)
7. Kansas also applies excise taxes to certain goods Alcoholic Beverages: Specific rates for beer, wine, and spirits. Tobacco: Per-pack tax on cigarettes and percentage tax on other tobacco products. Motor Fuels: Gasoline and diesel are taxed at the wholesale level but are passed on to consumers. Discretionary Taxes: Transient Guest Tax: Applied to accommodation charges by transient guests in specific areas. Special District Taxes: Some regions may have special taxes for specific purposes (e.g., community development). Excise Taxes and Other Sales Tax Considerations
8. Physical Nexus In 2024, Kansas has expanded physical nexus standards, requiring businesses to register if they have a physical presence such as owning property, having employees, or storing inventory in the state. This also includes temporary presences like trade shows or events Economic Nexus Out-of-state sellers must collect sales tax if their annual sales exceed $100,000 in Kansas. Marketplace facilitators (like Amazon) are also responsible for collecting and remitting sales tax for third-party sellers exceeding this threshold. Nexus in Kansas (2024)
9. Affiliate Nexus and Marketplace Facilitators Affiliate Nexus: If businesses have affiliates in Kansas (such as marketing affiliates), they may be required to collect and remit sales tax even if they don’t have a direct physical presence. Marketplace Facilitators If a marketplace facilitator exceeds $100,000 in sales, they must collect and remit sales tax on behalf of third- party sellers.
10. To stay compliant with Kansas sales tax laws, businesses must To stay compliant with Kansas sales tax laws, businesses must Register with the Kansas Department of Revenue if required (based on nexus or sales thresholds). File Sales Tax Returns: Depending on sales volume, returns may be due monthly, quarterly, or annually. Pay Taxes Promptly: Failure to remit sales tax accurately and on time can result in penalties and interest. Compliance, Reporting, and Penalties
11. Thank You Thank You trykintsugi.com