The Interstate Common Carrier Exemption Certificate is a crucial document for motor carriers operating within Kansas. This form allows eligible carriers to purchase tangible personal property, including rolling stock such as buses and trailers, repair or replacement materials, and certain motor fuels without paying Kansas sales and compensating use tax. To qualify, carriers must be engaged in interstate commerce, either exclusively or alongside intrastate commerce. This exemption is grounded in specific Kansas statutes, namely K.A.R. 92-19-28 and K.A.R. 92-20-18, and covers a array of items directly used in interstate commerce. However, it's important to note that labor services related to the maintenance or repair of rolling stock are taxable. To utilize this exemption, carriers need to provide details about their motor carrier authority or USDOT number, confirming their eligibility based on the transportation of regulated or exempt commodities or through a lease to a carrier possessing the necessary authority. This certificate also sets clear guidelines on who may or may not claim the exemption, emphasizing its applicability to common carriers involved in interstate commerce and excluding contract carriers not available for hire to the public. Sellers are advised to retain the completed form for a minimum of three years, ensuring compliance and establishing a seller's freedom from tax liability should the stipulated conditions be met.
| Question | Answer |
|---|---|
| Form Name | Interstate Common Carrier Exemption Form |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Other names | USDOT, interstate common carrier, Gantries, FMCSA |
KANSAS DEPARTMENT OF REVENUE
INTERSTATE COMMON CARRIER EXEMPTION CERTIFICATE
The undersigned motor carrier certifies that the tangible personal property purchased from:
Seller: |
_________________________________________________________________________________________________ |
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Business Name |
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Address: |
_________________________________________________________________________________________________ |
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Street, RR, or P.O. Box |
City |
State |
Zip + 4 |
is exempt from Kansas sales and compensating use tax for the following reason:
K.A.R.
Description of tangible personal property purchased: _______________________________________
__________________________________________________________________________________________
The undersigned motor carrier further certifies that he or she qualifies as a public utility on the following basis:
Check one box and complete the information requested.
ﾉI have common carrier authority to haul regulated commodities. I will use the purchased item(s) as, or attached to, rolling stock for the purpose of hauling persons or commodities for hire in interstate commerce. My Motor Carrier authority is under the name of _________________________. My Motor Carrier number is ____________________. My USDOT number is ____________________.
ﾉI do not have common carrier authority but I am hauling exempt (unregulated) commodities. I will use the purchased item(s) as, or attached to, rolling stock for the purpose of hauling unregulated commodities for hire in interstate commerce. My USDOT number is __________________ and under the name of __________________________.
ﾉI do not have common carrier authority but I am leased/contracted to a holder thereof, and that I will use the purchased item(s) as, or attached to, rolling stock to haul persons or commodities for hire in interstate commerce.
I am leased/contracted to: ______________________________________________________________________
Lessor’s Name
Lessor’s Address: ____________________________________________________________________________
Street, RR or P.O. BoxCityStateZip + 4
Address: _____________________________________________________________________________________
Lessor’s Motor Carrier Number: _________________ Lessor’s USDOT Number: ________________________
CHARGES FOR LABOR SERVICES TO SERVICE, MAINTAIN, OR REPAIR ROLLING STOCK,
INCLUDING BUSES AND TRAILERS, ARE TAXABLE.
The undersigned understands and agrees that if the tangible personal property is not used in interstate commerce, which is exempt from sales or compensating use tax, the undersigned motor carrier becomes liable for the tax.
Purchaser: ________________________________________________________________________________________________
Motor Carrier Name
Address: _________________________________________________________________________________________________
Street, RR, or P.O. Box |
City |
State |
Zip + 4 |
Authorized Signature: ____________________________________________________ |
Date: ___________________ |
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THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.
(See reverse for additional information and instructions.)
ABOUT THE INTERSTATE COMMON CARRIER EXEMPTION
WHO MAY USE THIS EXEMPTION?
Only interstate common carriers or those leased to an interstate common carrier may use this exemption. Three types of interstate common carriers are exempt from sales tax:
•Common carriers that transport regulated goods or persons in interstate commerce.
•Common carriers engaged in the interstate transportation of goods exempt from regulation (such as livestock and grain).
•Common carriers that haul both Regulated and Exempt commodities.
In order to qualify as a common carrier a motor carrier must: 1) be actively engaged in the business of hauling persons or freight for others; AND, 2) actively advertise or otherwise hold out that it is actively engaged in the business of hauling persons or freight for others. Motor carriers do not qualify as common carriers and may not claim the exemption available to common carriers if the motor carrier only hauls goods or materials for a separately incorporated business or businesses that have a significant ownership interest in the motor carrier and use or consume the goods or materials that are being hauled in activities that involve construction, oil and gas well exploration, or other similar activities.
WHO IS NOT EXEMPT?
Contract carriers that are not for hire to the general public. They are not common carriers and, therefore, NOT exempt from sales tax. Also not exempt are common carriers that are intrastate carriers (operating only within the state). These carriers are not exempt from sales tax because they are not involved in interstate commerce.
WHAT PURCHASES ARE EXEMPT?
Only rolling stock, parts, motor fuels and other items used directly and immediately in interstate commerce are exempt. All other property purchased by a common carrier is taxable. The examples below illustrate the types of items a carrier may purchase without tax using this exemption certificate, and those that are taxable.
Exempt |
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Taxable |
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Air and oil filters |
Semi trucks/tractors |
Boxes |
Lining Paper |
Fuel pumps |
Spark plugs |
Building Materials |
Office equipment |
Gasoline and diesel fuel |
Tarps |
Computers |
Office supplies |
Hoses and belts |
Tires |
Furniture Pads |
Packing “Peanuts” |
Lubricants |
Trailers (all types) |
Fork Lifts |
Packing Supplies |
Refrigerant |
Valves |
Gantries |
Piano Boards |
Repair parts for trailers |
Windshields and mirrors |
Labor Services |
Straps |
& trucks/tractors |
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Ladders |
Tape |
LABOR SERVICES
Only tangible personal property may be purchased exempt. Labor services to repair, replace, service, or maintain a carrier’s rolling stock are subject to sales tax.
EXAMPLE: A common carrier has the engine in one of its trucks overhauled in Kansas. The parts used in the overhaul (water pump, spark plugs, oil and oil filter) are exempt. The repair shop would have the carrier complete this certificate to exempt the sale of these parts from sales tax. However, the labor service fee charged by the mechanic or repair shop to do the work (such as a rate of $40/hr.) is subject to sales tax. The repair shop would charge the carrier sales tax on the total labor charges.
NUMBERS
Motor Carrier Number. Carrier numbers are issued by the Federal Motor Carrier Safety Administration (FMCSA) granting authority for interstate operations.
USDOT Number. Companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce must be registered with the FMCSA (fmcsa.dot.gov/) and must have a USDOT Number. Also, commercial intrastate hazardous materials carriers who haul quantities requiring a safety permit must register for a USDOT Number.
An owner/operator may purchase a truck and/or trailer, and repair parts therefore, exempt from Kansas sales tax when the owner/operator does not have interstate common carrier authority themselves but, will lease or contract to an interstate common carrier.
RETAINING THIS CERTIFICATE
Sellers should retain a completed copy of this certificate in their records for at least three years from the date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.