KANSAS DEPARTMENT OF REVENUE                             465918 
                              CONSUMED IN PRODUCTION EXEMPTION CERTIFICATE 
The undersigned purchaser certifies that the tangible personal property or service purchased from: 
Seller:  ___________________________________________________________________________________________________________________________  
                                                                  Business Name 

Address: _________________________________________________________________________________________________________________________ 
                              Street, RR, or P. O. Box            City                          State            ZIP + 4 
is exempt from Kansas sales and compensating use tax for the following reason: 
K.S.A.  79-3606(n)  exempts  all  sales  of  tangible  personal  property  consumed  in  the  production,  manufacture, 
processing, mining, drilling, refining or compounding of tangible personal property, the treatment of waste or by-
products derived from any such production process, the providing of services, or the irrigation of crops for ultimate 
sale at retail within or without the state of Kansas. 
Description of tangible personal property or services purchased:  __________________________________________ 
 ______________________________________________________________________________________________________________ 
The undersigned understands and agrees that if the tangible personal property or services are used other than as stated 
above or for any other purpose that is not exempt from sales or compensating tax, the undersigned purchaser is liable for 
the tax. 
Purchaser: _______________________________________________________________________________________________________________________ 
                                                            Business Name 
Address:  _________________________________________________________________________________________________________________________  
                             Street, RR, or P. O. Box             City                          State            Zip + 4 

Authorized Signature:  _________________________________________________________________________     Date:  ________________________ 

                              THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY. 
WHO MAY USE THIS EXEMPTION? Any business buying goods  or merchandise that qualifies as “property which is consumed” will use 
this certificate. Whether the item qualifies for exemption is determined by how the item is used in production or processing. An item 
may be taxable for one use and exempt for another use, even though purchased by the same consumer. Each item and its use must be 
separately measured against the definition to determine if the sale is taxable or exempt. 

WHAT IS “PROPERTY WHICH IS CONSUMED?”  To be exempt, the item must be essential and necessary to the process, used in 
the actual process, not reusable and be consumed, depleted or dissipated within one year. The fact that property may be used for only 
one production or processing activity and then discarded, or that it becomes obsolete or worthless in a short time is not the determining 
factor.  Items that break, depreciate, wear out or become obsolete, even in a very short time, may not qualify to be exempt as “consumed 
in production.” Included as a process qualifying for the exemption is the storage or processing of grain by a public grain warehouse or 
other grain storage facility. 
EXAMPLES: The following are exempt as “property which is consumed” when used in these industries or applications. 
       • Liquid oxygen used in the production of fiberglass. 
       • Diesel fuel and oil, drilling fluids, and chemicals (such as acid and drilling mud) that are consumed in drilling wells. 
       • Coal used to generate electricity. 
       • Graphite, E.D.M. oil, and abrasives consumed in manufacturing die impressions, forge dies and forgings. 
       • Refrigerant used in the production of aircraft. 

PROVIDING OF SERVICES:  The term “service” in the law above refers only to TAXABLE  services. Businesses providing services that 
are not taxable (such as accountants, doctors, lawyers, architects, etc.) must pay sales tax on items purchased for their business, and 
may not claim any exemption from sales tax. 

CONTRACTORS:   This  certificate  may  NOT  be  used  by  contractors  to  purchase  their  materials.  All  materials  and  parts  purchased 
by contractors, subcontractors, and repairmen to be incorporated into any structure or consumed in altering, servicing, repairing, or 
maintaining personal property (or personal property that has been attached to real property) are TAXABLE unless a Project Exemption 
Certificate has been furnished to the contractor by the customer. 

RETAINING THIS CERTIFICATE: Sellers should retain a completed copy of this certificate in their records for at least three years from 
the date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the 
seller has a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship 
between the buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales 
transactions. 

ST-28C (Rev. 7-08)