Form St 28B – Fill Out and Use This PDF

θAgriculturaluse.(Electricity&gassubjecttolocalsalestax.)

θCertain nonprofit corporations exempt from real estate property tax – i.e., adult care homes (nursing homes); private children’s homes (nursing home foster care, etc.); housing for low and limited income elderly and disabled persons (includes HUD housing projects); housing for the elderly; and group housing for mentally ill, retarded, and

other disabled persons. ATTACH A COPY OF THE “ORDER” FROM THE BOARD OF TAX APPEALS.

θConsumed in the production, manufacturing, processing, mining, drilling, refining, or compounding of tangible personal property, or treatment of by-products or wastes of any above processes.

θDomestic violence shelters.

θ*Educational institutions and nonprofit trusts, nonprofit endowmentassociationsandfoundationsoperatedforthe sole benefit of an education institution.

θ*Government entity.

θSevering of oil.

θIngredient or component part.

θIrrigation of crops.

θMovementininterstatecommercebyrailroadorpublicutility.

θ*Noncommercial educational radio or TV station.

θNoncommercial residential use. (Electricity & gas subject to local sales tax.)

θ*Nonprofit hospital.

θ*Nonprofit museum or historical society.

θ*Nonprofit zoo.

θ*Over-the-air free access radio or TV station. Only the electricityusedtoproducethebroadcastsignalisexempt. All other utility use is taxable.

θProviding taxable services.

θ*Religious organization exempt from federal taxation under section 501(c)(3) of the federal Internal Revenue Code.

θ*Other exempt entity

When gas, water, or electricity is furnished through one meter for both taxable and exempt purposes, the purchaser is responsible for determining the percentage of use exempt from sales tax. The sample worksheet provided below will help you todeterminethepercentofelectricity,gas,orwaterthatqualifies for exemption. If you have questions about this form, contact our Taxpayer Assistance Center, Kansas Department of Revenue, 915 SW Harrison St., 1st Floor, Topeka, KS, 66625- 0001, or call (785) 368-8222.

AGRICULTURAL: Electricity and gas for agricultural use is exempt from the state sales tax but not exempt from the local taxes. Agriculturalusedoesnotincludecommercialoperations suchasprocessingfoodordairyproducts,off-farmgrainstorage and marketing, lumbering, or use by a stockyard, slaughter house, floral shop, or turf farm.

CERTAINNONPROFITCORPORATIONS: Salesofelectricity, gas, or water to properties which are exempt from property taxationunderK.S.A.79-201bSecondthroughSixthareexempt from state and local sales tax. Once the property is determined tobeexempt,copiesofthe“order”fromtheBoardofTaxAppeals and this completed exemption certificate (ST-28B) must be provided to the utility company and the Kansas Department of Revenue.

CONSUMABLES: The portion of electricity, gas, or water you use that meets the following requirements is exempt from state and local taxes: 1) essential or necessary to the process; 2) used in the actual process at the location during the production activity; 3) immediately consumed or dissipated in the process; and, 4) used in the production, manufacturing, processing, mining, drilling, refining, or compounding of tangible personal propertyorthetreatmentofby-productsorwastesofanyabove

processes. The following uses of electricity, gas, or water are not exempt from sales tax: shipping, repairing, servicing, maintaining,cleaningtheequipmentandthephysicalplant,and storing.

INGREDIENT OR COMPONENT PART: An example of electricity, gas, or water which becomes an ingredient or component part and qualifies for exemption is “water” that is part of the ingredient in a beverage which is bottled and sold to a retailer for resale.

RESIDENTIAL: If the electricity, gas, or water you consume is for residential use only, you do not need to file this form. The utility company automatically exempts you from paying state sales tax (city and county sales tax still applies). However, if theelectricity,gas,orwateryouconsumeispartlyforresidential purposes and partly for commercial use, you must determine the percent of usage that is residential and file copies of your worksheets and this completed form with your utility company and the Department of Revenue. Utilities consumed in commercial common areas such as an office, lounge, hallway, laundryfacility,storagearea,swimmingpool,etc.,donotqualify for exemption.

HOW MUCH OF MY UTILITY USE QUALIFIES FOR EXEMPTION? You will probably need several sheets of paper as worksheets. If your facility is serviced by more than one meter, you need to complete a separate chart to determine the percent of usage for each meter. If the facility is heated and air-conditionedbyacentralunit,youmayusethesquarefootage method to arrive at the residential percent of consumption for heatingandcooling. Youmayneedtheassistanceofaplumber or electrician to complete the formulas. Refer to the following example and steps to determine your exempt percent.

1.At the top of each page, place the headers as noted in the example and complete the following information per column:

COLUMN 1—List each device that is pulling the utility. COLUMN 2—Rating of each device.

COLUMN 3—Estimate the number of hours of use per day (i.e., on average, twenty 40 watt light bulbs are on ten hours per day, therefore, enter “10”).

COLUMN 4—Determine and enter load factor (i.e., when a light bulb is on it pulls the full rate of 100% power but a burneronthestoveon“low”mayonlypull30%loadfactor).

COLUMN 5—Number of days the device is used per year. COLUMN 6—Determine usage per year stated in kilowatt-

hours (kWh), BTU, or gallons.

1000 watts = 1 kWh

Horsepower = .746 X H.P. = watts

Ten 100-watt bulbs burning 1 hour will use 1 kWh

1,000,000 BTU in 1 MCF

2.Indicatebesideeachtypeofdevicean“E”forexemptora“T” for taxable.

3.Multiplythequantityincolumn1bycolumn2bycolumn3by column 4 by column 5 to arrive at the sum for column 6.

4.Add the usage per year (column 6) for all of the devices you have indicated as “exempt” then add all of the usage per year(column6)forallthedevicesthatyouhaveindicatedas being“taxable.” Addingtheexemptandtaxableusageshould equalthetotalconsumptionperyearasshownonyourutility bills for the last 12 months.

5.Divide the total number of exempt kWh by the total number of kWh consumed in the last 12 months. This is the percent ofusagethatisexemptfromtax. Enterthisamountonline5 on the front of this form (ST-28B).