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Kansas, Kentucky And Louisiana State Sales And Use Tax Exemptions



Aaron Giles Sales And Use Tax

This is a continuation of the State Sales and Use Tax Exemption series from contributor and organizer Aaron Giles.

Kansas State Sales And Use Tax Exemptions

The state of Kansas levies a 6.5% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 4%. The range of total sales tax rates within the state of Kansas is between 6.5% and 10.5%.

Use tax is also collected on the consumption, use or storage of goods in Kansas if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 25th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Kansas on or before February 25th.

Kansas State Department of Revenue
Kansas State Sales And Use Tax Legislation
Kansas State Sales And Use Tax Forms

Kentucky State Sales And Use Tax

The state of Kentucky levies a 6% state sales tax on the retail sale, lease or rental of most goods and some services. There are no local sales taxes in the state of Kentucky.

Use tax is also collected on the consumption, use or storage of goods in Kentucky if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Kentucky on or before February 20th.

Kentucky State Department of Revenue

Kentucky Department of Revenue
Kentucky Tax Laws And Regulations

Louisiana State Sales And Use Tax

Beginning on April 1, 2016 the state of Louisiana levies a 5% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 7%. Prior to the 1% increase in the state rate which took place on April 1, 2016 the state rate was 4%.  The current range of total sales tax rates within the state of Louisiana is between 5% and 12%.

Use tax is also collected on the consumption, use or storage of goods in Louisiana if sales tax was not paid on the purchase of the goods. The use tax rate of 8% includes 4% to be distributed by the Department of Revenue to local governments. The use tax rate is 8% regardless of whether the actual combined state and local rate in your area is equal to, higher than, or lower than 8%. The use tax is paid in lieu of the actual local rate in effect. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Louisiana on or before February 20th.

The Louisiana Sales And Use Tax Exemptions For The Healthcare Industry

The healthcare industry, including hospitals, outpatient surgical center as well as nursing homes, have a number of state sales and use tax exemptions for which they are eligible. Additionally, some local parishes offer reduced rates or complete exemptions on some purchases. Our sales tax consultants have had the most success helping clients in the healthcare industry with two main categories of purchases: prescription-required, single-use medical devices; and food purchases for their facilities’ cafeterias. For more information about this Louisiana sales tax exemption, please see the Research Bulletin written by our sales tax consultants about

Louisiana’s Prescription-Required Single-Use Medical Device Exemption.

Louisiana Department of Revenue
Louisiana Department of Revenue Tax Forms
Louisiana Sales Tax Exemption For Prescription-Required Singe-Use Medical Devices

Have a sales and use tax question? Contact Aaron Giles

 

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Aaron C. Giles is the Founder and President of Agile Consulting Group. Aaron spent five years working within the specialty niche of Sales & Use Tax at Brown & Associates before forming his own firm in 2005. He has worked hundreds of audits in states all across the U.S. during that time and has delivered savings of over $75M in the form of refunds and credits to his clients. Today, he leads a group of talented, detail-oriented colleagues who focus exclusively on Sales & Use Tax.

Some of our firms’ greatest achievements have come in successfully arguing new and unique perspectives to existing tax law in various states enabling our clients to claim exemptions on categories of purchases previously held to be taxable. Included in these victories are: communication services taxes for religious nonprofit hospitals in FL, bulk purchases of drugs in VA, specific surgical tools and instruments for healthcare providers in TX, printing plates in GA, railroad utilities in KY, and most recently software in AL.

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