Pet Adoption Fees Subject to Tax in Kansas

Jun 19th, 2012

The Kansas Department of Revenue recently issued guidance regarding the taxability of pet adoption fees (Kan. Rev. Rul. No. 19-2012-01 (Dept. of Revenue Jun. 15, 2012)). In Kansas, the sale of a pet is considered to be the sale of taxable tangible personal property. Therefore, any fees paid as part of the sale are subject to tax. This is true regardless of whether the fee is designated as an adoption fee, a placement fee, or a minimum donation to the animal shelter. If the fee is required in consideration for the purchase of the pet, it is subject to tax.

Although charges made by a veterinarian to a pet owner for vaccinations, spaying or neutering, health examinations, or deworming are not generally subject to tax in Kansas (Kan. Stat. Ann. sec. 79-3603), such charges are taxable if they are included as part of the "purchase price" of the pet, regardless of whether such charges are separately stated. However, if such services are optional and are not required in order to purchase the pet, the charges for these services are exempt from tax.