Many states, as well as the District of Columbia, have started implementing economic nexus sales tax laws for out-of-state or remote sellers because of the South Dakota v. Wayfair Inc. decision. The Kansas Department of Revenue initially announced it would tax remote sales. However, the Kansas Attorney General called the policy invalid and the state is currently under a dispute with how to move forward. This blog will be updated when and if that changes, but below we provided a brief summary of what the Kansas Department of Revenue, Attorney General and Governor have said on the issue.
Enforcement date: 
October 1, 2019.
Sales/transactions threshold:
N/A
Measurement period:
N/A
Included transactions/sales:
N/A
When You Need to Register Once You Exceed the Threshold:
N/A
Summary: Kansas is a Streamlined Sales Tax (SST) member, meaning that remote sellers can register online by completing an application through the Streamlined Sales Tax Registration System. This is meant “to provide a road map for states who want to simplify and modernize sales and use tax administration in the member states in order to substantially reduce the burden of tax compliance,” according to the Kansas Department of Revenue. Kansas has been a destination-based sourcing state since July 1, 2003, meaning “sales tax is imposed at the rate determined by, and is paid to, the jurisdiction where the purchaser takes delivery or possession of the purchased item(s). For remote sellers, this is frequently the jurisdiction into which items are mailed or shipped.”
The Kansas Department of Revenue stated in Notice 19-04 that it requires remote sellers to collect and remit Kansas sales tax regardless of how much business is done with the state. The Kansas Attorney General stated that Notice 19-04 was invalid. Subsequently, the Kansas Governor released a statement saying she supported the Department of Revenue’s position. It remains unclear what the current status of this issue is in Kansas.
As sales tax rules and regulations continue to change, businesses operating in Kansas – even those doing so remotely – should not fear that change. Instead, it is critical to remain informed on the latest updates and how they can stay compliant.
Kansas Sales Tax Resources: If you want to learn more about how a potential Kansas economic nexus sales tax would impact your business, reach out to our team. For more details and real-time updates on other state requirements, check out our interactive sales tax nexus map.
