Pemco, Inc. v. Kansas Department of Revenue

The opinion of the court was delivered by

McFarland, C.J.:

This is an appeal by the Kansas Department of Revenue (Department) from the decision of the district court invalidating K.A.R. 92-19-72 on the ground that it exceeded the statutory authority contained in K.S.A. 1994 Supp. 79-3602(a). The action arises from the Department’s assessment of sales tax against Pemco, Inc.’s, rental of equipment to its wholly owned subsidiary, Clean Water Construction (Clean Water).

The pertinent stipulated facts may be summarized as follows. Pemco is a corporation-authorized to do business in Kansas, and only…