Kansas DOR Issues Notice on Vehicle Manufacturer Cash Rebate Exemption

The Kansas Department of Revenue (DOR) June 5 issued a notice regarding the sales and compensating use tax exemption on manufacturer cash rebates for the purchase of motor vehicles. The notice provides an update on the exemption including: 1) a 2022 bill amending the definition of sales or selling price to remove the sunset provision for the exclusion of certain cash rebates granted by a manufacturer from the sales or selling price of a vehicle; 2) a provision on vehicles that qualify for exemption from sales tax; and 3) a provision that a manufacturer’s rebate for items of tangible personal ...