By: Robert Adcock, Special Events Agent, Kansas Department of Revenue

The State of Kansas has deep roots in agriculture.  Though Kansas is known for wheat, corn, soybeans and cattle, many Kansans also grow delicious tomatoes, green beans, zucchini and other assorted vegetables.  Kansas agriculture is not only commercial but also entrepreneurial.  As more Kansans grow crops and create specialty goods for sale at local farmers’ markets, it is important to be familiar with Kansas tax law.

Items sold at farmers’ markets are considered tangible personal property and in Kansas, tangible personal property is subject to sales tax. 

Vendors selling at market must collect and remit sales tax from their sales.  Vendors selling throughout the year are required to register with the Kansas Department of Revenue to obtain a Kansas retailers’ sales tax account number.  Registration may be made via the Kansas Department of Revenue website at www.ksrevenue.org.  Vendors must file their sales tax returns at www.webtax.org. 

Vendors selling four or fewer times per year must also collect and remit sales tax, however they are not required to register for a Kansas sales tax number.  These vendors must file and remit their sales tax using the special event tax return provided to them by the market coordinator.  If a return is not provided, the vendor must contact the Kansas Department of Revenue Special Events Department to obtain a tax form. This tax return and remittance must be submitted immediately after the vendor’s final day selling at market.

While selling at market, vendors’ are required to have their Kansas Retailer’s Sales Tax Registration Certificate available for inspection.  Vendors who do not have a Kansas sales tax number should post the Event Registration Certificate, which is included with the special event return provided by the market coordinator or requested from the Kansas Department of Revenue Special Events Department.

Many markets utilize the SNAP program and Double Up Food Bucks program.  After much discussion and research, the Kansas Department of Revenue recognizes sales made through both of these programs as exempt from sales tax.  Vendors are still required to claim income generated by these sales. 

As more farmers rely on sales from farmers’ market as their main source of income, profitability is often on the mind.  Vendors who have a Kansas sales tax number should be taking advantage of the opportunity to purchase items, for resale or items used as ingredients or components to create a product, tax exempt.  Vendors should be familiar with the ST-28A resale exemption certificate form and the ST-28D ingredient or component part exemption certificate.  These forms can save vendors from a few dollars to thousands of dollars in sales tax based on the size of their operation. 

This is just a glimpse into Kansas sales tax responsibilities.  More information can be found in publication KS-1510 Sales Tax and Compensating Use Tax at www.ksrevenue.org.  The Kansas Department of Revenue is here to help.  If you should have any questions regarding your sales tax account, tax obligations or are in need of a special event return, email us at kdor_special.events@ks.gov.