Must a person who reclaims oil withhold and remit the Kansas mineral tax?
A35: A person who reclaims oil has two options for payment of the Kansas mineral tax: Option(1)–A person who reclaims oil is considered first purchaser and must report all purchases made. Tax is to be withheld and remitted based on gross value paid for each purchase of oil unless operator supplies Kansas Department of Revenue Lease exemption Certificate, or the Operator has made the election to remit the tax. Option(2)–A person who reclaims oil is considered operator and tax is withheld when sold to refinery or other purchaser. Reclaimer is paying tax based on gross value received upon sale. There are no exemptions from tax allowed under this option.
