A new Kansas bill requires businesses to receive a uniquely numbered tax exempt certificate from qualified tax exempt entities in order to grant tax exempt sales. This law takes effect Jan. 1, 2005, so churches are encouraged to get registered as soon as possible.

Individual churches will need to register for their own number. Unlike the federal tax exemption, there is not a group exemption number for this state certificate. The policy is intended to streamline tax exempt purchases by aiding retailers to readily identify who is eligible to make exempt purchases. It is a common misconception that all non-profit organizations are tax exempt from sales tax.

How to Register —

The Kansas Department of Revenue has made registering for the certificates very easy. Simply log on to their website and follow links for Tax Exempt Certificates (http://www.ksrevenue.org/index.htm). The links will take you to the online business center where, unless you already have an account, you will need to set up a user name and password. Then you will be directed to fill out an online form. You will need the church’s EIN (Employer Identification Number) in order to complete the form. Under the “Structure of the Organization” section, simply state “Religious Organization” in the appropriate sections. Once completed, submit the form, and you will be given a temporary number. In about a week you can log back on to the website and print your certificate.

If you do not have access to the internet, you may call the Kansas Department of Revenue Policy and Research Office at (785) 296-3081. However, the Department of Revenue does encourage you to register via the internet if at all possible.