Does a student organizations at K-State need to collect and remit sales tax when they buy items from a retailer and then resell them to members. Specifically the most common item is t-shirts. The organization purchases them, they pay out of the organization's checking account and do pay sales tax. Should they then collect and remit sales tax if they then sell them to their members at cost?
Yes, sales tax needs to be collected. In addition many questions can be answered by consulting our department's Policy Information Library on our web site at www.ksrevenue.org. However, there are unique situations that may require an interpretation or clarification based upon the law, regulations, and specific facts of the case. When this happens, document the question(s) in writing and request a Private Letter Ruling or an Opinion Letter from the department. Mail or fax your request to:
Office of Policy Research
Kansas Department of Revenue
915 SW Harrison St Room 230
Topeka KS 66612-1588
Fax: 785-296-7928