Obscure ‘use tax’ a surprise to many

? Many Kansans are breaking the state’s tax law, and they don’t even know it.

A 1937 state law requires any Kansan who buys merchandise from out of state to pay the difference between the two states’ sales taxes.

That means someone buying an item in Wyoming is required under state law to pay Kansas the difference between what he or she paid in sales tax to the other state and what Kansas would charge.

“It’s pretty well on the honor system on personal purchases,” said Steve Brunkan, a policy analyst for the Kansas Department of Revenue. “Businesses are more aware of the use tax than individuals. If we audited a business, that’s one of the things we look for, whether they paid that tax.”

Kansas businesses pay $35 million to $50 million each year in additional sales tax to the state, Brunkan said.

Individuals are rarely, if ever, audited for sales tax compliance, he said.

“The tax is due,” Brunkan said. “There’s just no real way of tracking it or making sure we get it.”

Reno County officials were caught off-guard by the tax Monday when they received a notice from the Department of Revenue explaining an upcoming change.

In the past, consumers were supposed to use the state sales tax rate of 5.3 percent to calculate what they owed after buying merchandise from out of state.

After July 1, consumers will combine local sales tax rates with the state sales tax rate when calculating out-of-state sales taxes due to Kansas.

“They’re serious about that?” Commissioner Larry Sharp asked. “How would they enforce it? I guess we’re all going to be criminals before too long.”