MARKETPLACE FACILITATORS

K.S.A. ch. 79, art. 56

in effect

K.S.A. 79-5601 Definitions.

79-5601. Definitions. As used in K.S.A. 2025 Supp. 79-5601 through 79-5604 , and amendments thereto: (a) "Department" means the department of revenue. (b) (1) "Marketplace facilitator" means a person, including any affiliate of the person, that: (A) Contracts or otherwise agrees with marketplace sellers to facilitate for consideration, regardless of whether deducted as fees from the transaction, the sale of the marketplace seller's products or rooms, lodgings or accommodations through a physical or electronic marketplace operated, owned or otherwise controlled by the person; and (B) either directly or indirectly through contracts, agreements or other arrangements with third parties, collects the payment from the purchaser and transmits all or part of the payment to the marketplace seller. (2) A "marketplace facilitator" includes a person that provides a platform through which unaffiliated third parties offer to rent to and collect consideration from occupants for rental, for a period of less than 29 consecutive days, of rooms, lodgings, accommodations, homes, apartments, cabins or residential dwelling units that are intended to be used as a room, lodging or sleeping accommodation by one person or by two or more persons maintaining a common household, to the exclusion of all others. A person is not a marketplace facilitator with respect to the sale or charges for rooms, lodgings or sleeping accommodations, if such rooms, lodgings or sleeping accommodations are provided by a hotel as described in K.S.A. 36-501 , and amendments thereto, and the hotel provides the rooms, lodgings or sleeping accommodations for occupancy under a brand belonging to such person or the person facilitates sales or charges on behalf of the hotel. (3) A "marketplace facilitator" does not include: (A) A platform or forum that exclusively provides advertising services, including listing products for sale, so long as the advertising service platform or forum does not also engage directly or indirectly through one or more affiliated persons in the activities described in K.S.A. 2025 Supp. 79-5601(b)(1)(A) or (b)(1)(B), and amendments thereto; (B) a person whose principal activity with respect to marketplace sales is to provide payment processing services between two parties; or (C) a derivatives clearing organization, designated contract market, foreign board of trade or swap execution facility, registered with the commodity futures trading commission, and any clearing members, futures commission merchants or brokers when using the services of the commodity futures trading commission. (c) "Marketplace seller" means a seller that makes sales through any physical or electronic marketplace operated, owned or controlled by a marketplace facilitator. (d) "Tax" means: (1) The retailers' sales tax imposed under K.S.A. 79-3603 , and amendments thereto; (2) the compensating use tax imposed under K.S.A. 79-3703 , and amendments thereto; or (3) the transient guest tax imposed under K.S.A. 12-1693 or 12-1697 , and amendments thereto, or any applicable city or county resolution or ordinance. L. 2021, ch. 93, § 1; July 1.

K.S.A. 79-5602 Collection of taxes and fees; duties of marketplace facilitators.

79-5602. Collection of taxes and fees; duties of marketplace facilitators. (a) (1) Any marketplace facilitator selling or facilitating the sale of property or services subject to tax in this state shall be required to collect and remit such taxes and follow all applicable procedures and requirements provided by law for the collection and remittance of such taxes. A marketplace facilitator shall only be required to collect and remit such taxes if the following criteria are satisfied during the current or immediately preceding calendar year: (A) The marketplace facilitator makes sales of property or services otherwise subject to tax in the state in an amount exceeding $100,000; or (B) if a marketplace facilitator makes or facilitates the sale of property or services subject to tax in the state, on its own behalf or on behalf of one or more marketplace sellers, for delivery into this state in an amount exceeding $100,000. (2) For any marketplace facilitator who satisfies the provisions of this subsection for sales in the current calendar year for the first time, such marketplace facilitator shall be required to collect and remit the tax on any sales in excess of $100,000 of cumulative gross receipts from sales in the current calendar year for delivery into this state. (b) The department may grant a waiver from the requirements of this section if a marketplace facilitator demonstrates, to the satisfaction of the department, that substantially all of its marketplace sellers already are collecting and remitting taxes to the department. If such waiver is granted, the taxes levied shall be collectible from the marketplace seller. The department shall promulgate rules and regulations that establish: (1) The criteria for obtaining a waiver pursuant to this section; (2) the process and procedure for a marketplace facilitator to apply for a waiver; and (3) the process for providing notice to an affected marketplace facilitator and marketplace seller of a waiver obtained pursuant to this subsection. (c) Nothing in this section shall prohibit the marketplace facilitator and the marketplace seller from contractually agreeing to have the marketplace seller collect and remit all applicable taxes and fees if the marketplace seller: (1) Has annual gross sales in the United States over $1,000,000,000, including the gross sales of any related entities, and, in the case of franchised entities, including the combined sales of all franchisees of a single franchisor; (2) provides evidence to the marketplace facilitator that the marketplace seller is registered pursuant to K.S.A. 79-3608 , and amendments thereto; and (3) notifies the department in the manner prescribed by the department that the marketplace seller will collect and remit all applicable taxes and fees on sales through the marketplace and is liable for failure to collect or remit applicable taxes and fees on such sales. (d) Prior to April 1, 2022, if a marketplace facilitator sells or facilitates the sale of prepaid wireless service, the provider of such prepaid wireless service is not liable for collection or payment of the prepaid wireless 911 fees imposed under K.S.A. 12-5371 , and amendments thereto, unless such prepaid wireless provider is a marketplace seller collecting taxes under the provisions of a waiver granted in subsection (b). (e) On and after April 1, 2022, any marketplace facilitator that is obligated to collect the taxes imposed under this act, shall also collect and remit to the department applicable prepaid wireless 911 fees imposed under K.S.A. 12-5371 , and amendments thereto. L. 2021, ch. 93, § 2; July 1.

K.S.A. 79-5603 Agreements with sellers; collection and administration requirements; liability.

79-5603. Agreements with sellers; collection and administration requirements; liability. (a) Except as provided in K.S.A. 2025 Supp. 79-5602 (b) or (c), and amendments thereto, a marketplace facilitator doing business in this state under K.S.A. 2025 Supp. 79-5602 , and amendments thereto, shall collect and remit the taxes on all taxable sales made by the marketplace facilitator or facilitated for marketplace sellers to customers in this state, regardless of whether the marketplace seller for whom sales are facilitated has registered to collect taxes or would have been required to collect taxes if the sale had not been facilitated by the marketplace facilitator. A marketplace facilitator has the same rights and duties as a seller to collect and remit all such taxes. Marketplace facilitators and marketplace sellers may enter into agreements with each other regarding fulfillment of the requirements of this section, but the marketplace facilitator remains the party that is liable to the state for fulfilling such requirements. (b) A marketplace facilitator shall either: (1) Report the tax imposed pursuant to subsection (a) separately from any taxes collected on taxable sales made directly by the marketplace facilitator, or affiliates of the marketplace facilitator, to customers in this state using a separate form to be published by the department; or (2) report the tax imposed pursuant to subsection (a) combined with any taxes collected on taxable sales made directly by the marketplace facilitator, or affiliates of the marketplace facilitator. (c) No class action may be brought against a marketplace facilitator in any court of this state on behalf of customers arising from or in any way related to an overpayment of tax collected on sales facilitated by the marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim. Nothing in this subsection affects a customer's right to seek a refund as provided under K.S.A. 79-3650 , and amendments thereto. (d) Nothing in this section affects the obligation of any consumer to remit the tax for any taxable transaction for which a marketplace facilitator or seller does not collect and remit the tax. (e) The department shall solely audit the marketplace facilitator for sales made by marketplace sellers but facilitated by the marketplace facilitator, except with respect to transactions that are subject to K.S.A. 2025 Supp. 79-5602 (b) or (c), and amendments thereto. The department shall not audit or otherwise assess tax against marketplace sellers for sales facilitated by a marketplace facilitator except to the extent that the marketplace facilitator seeks relief under subsection (f) or with respect to transactions that are subject to K.S.A. 2025 Supp. 79-5602 (b) or (c), and amendments thereto. (f) A marketplace facilitator shall be relieved of liability under this section for failure to collect and remit the correct amount of tax to the extent that the error was due to incorrect or insufficient information on the nature of the product or service given to the marketplace facilitator by the marketplace seller, if the marketplace facilitator can demonstrate a reasonable effort to obtain correct and sufficient information from the marketplace seller. This subsection shall not apply if the marketplace facilitator and the marketplace seller are under common ownership and control. (g) The department may waive penalties and interest if a marketplace facilitator seeks liability relief and the department determines that reasonable cause exists. (h) A marketplace facilitator shall be relieved of liability under this section if it can prove, to the satisfaction of the department, that the tax levied on a sale facilitated by the marketplace facilitator was paid to the department by the marketplace seller. L. 2021, ch. 93, § 3; July 1.

K.S.A. 79-5604 Applicability of collection and remittance requirements; effective date.

79-5604. Applicability of collection and remittance requirements; effective date. A marketplace facilitator shall not be required to collect and remit any taxes from sales occurring prior to July 1, 2021. L. 2021, ch. 93, § 4; July 1.

Source: Kansas Office of Revisor of Statutes (ksrevisor.gov)URL: https://www.ksrevisor.gov/statutes/ksa_ch79.htmlFetched: 10/20/2026