A purchase made by a public, nonprofit educational institution like WSU is exempt from sales tax as long as the purchase is used primarily for nonsectarian educational programs and activities. However, there are no statutes that allow these institutions to make a sale without collecting and remitting sales tax, unless the purchaser provides a valid tax exemption certificate or unless the product or service sold is expressly exempted from tax by statute.
Reporting and Remitting Sales Tax
Departments should maintain records that document taxable sales. When making a deposit to your department's account, the proceeds should be divided between the applicable revenue account codes and account code R80121, State Sales Tax. For example:
R80099 - Duplicating & Copy Charges $930.23 R80121 - State Sales Tax 69.77 Total deposit $1,000.00
In this example, the $69.77 is 7.5% of the $930.23 sale. To calculate the portion of the proceeds that is sales tax, use the following formula:
Total deposit x .069767 = sales tax at 7.5% rate
Using the numbers from above:
Total deposit $1,000.00 x adjustment factor .069767 Sales tax $69.77
The total sales tax collected each month is reported and remitted to the state by the Office of Financial Operations.
Frequently Asked Questions
Effective July 1, 2015, the current rate in Sedgwick County is 7.5%.
- Wichita State University Union Corporation (Rhatigan Student Center)
- WSU Alumni Association
- Recognized student organizations
- Wichita State University (including its departments, colleges and Student Government Association)
- WSU Foundation
- WSU Board of Trustees
- WSU Intercollegiate Athletic Association
- Admissions (sports, plays, concerts, movies)
- Newspapers, magazines and books
- Clothing, t-shirts, uniforms and sporting goods
- Health supplies
- Pencils, paper and school supplies
- Art, science and laboratory supplies
- Food and beverages, concessions, bake sales
- Printing and duplicating charges
- Lock rentals (separate from locker rentals)
- Rental of personal property (equipment, towels, musical instruments)
- Fees for educational programs
- Advertising in newspapers
- Dues for clubs or organizations
- Book rentals
- Locker rentals
- Building, room or facility rentals
- Reimbursement for lost or destroyed books or equipment
Proceeds from activities we view as fundraising or cost-recovery, the Kansas Department of Revenue views as sales. Whether the proceeds are for a worthy cause or there is no mark up for profit is irrelevant.
Additional Resources
Kansas Retailer's Sales Tax Exemptions
Publication KS-1560 Business Taxes for Schools and Educational Institutions