Attorney General Opinion No. 1987-141

Download or read book Attorney General Opinion No. 1987-141 written by Robert T. Stephan and published by . This book was released on 1987 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A non-profit hospital operating a telephone answering service exclusively for hospital purposes is exempt from payment of sales tax on the telephone services it purchases for such operation. K.S.A. 1986 Supp. 79-3606(b), as amended. A telephone answering service is not itself taxable under the Kansas retailers' sales tax act, but the rental of beepers or other such equipment by the hospital to physicians is taxable. K.S.A. 1986 Supp. 79-3603(h), as amended. A non-profit hospital which meets the requirements of 26 U.S.C. section 501 and 26 C.F.R. section 1.501 is exempt from federal income taxation pursuant to 26 U.S.C. section 501(a), and thus from state income taxation pursuant to K.S.A. 79-32,113, except to the extent it receives "unrelated business income." The receipt of a service free of charge from an employer as partial compensation for services rendered would fall within the scope of the broadly interpreted term "gross income," and therefore would be taxable income to the employee unless specifically exempted. Cited herein: K.S.A. 1986 Supp. 79-201b F̲i̲r̲s̲t̲; K.S.A. 79-32,113, 79-32,117; K.S.A. 1986 Supp. 79-3603, as amended by L. 1987, ch. 182, section 108; 79-3606, as amended by L. 1987, ch. 64, section 1 and L. 1987, ch. 292, section 32; K.A.R. 92-19-19; 26 U.S.C. sections 61, 62, 501; 26 C.F.R. section 1.501.