U.S. Sales Tax Exemption Procedures

Materials: In most states, The Kansas City Southern Railway Company (KCSR) is qualified to purchase railroad and rolling stock materials exempt from state and local sales tax.  Materials that qualify to be purchased exempt from sales tax:

• Rolling stock, including locomotives and freight cars (purchased or leased) and any replacement parts or supplies used by either
• Track materials, including rail, bolts, ties or any materials directly used on track
• Fuel, including dyed diesel used for off road purpose

KCSR will supply an exemption certificate for purchases of the above listed materials.  For states where an applicable sales tax exemption form is not available, KCSR may elect to self-assess and remit any tax due that was not collected by the supplier.

Except as noted above, all other KCSR purchases will be subject to sales tax, including but not limited to the following purchases:

• Office related items, including desk and printer supplies, computer hardware and office furniture
• Tools, shop supplies and other items not directly used for rolling stock, track operations or repairs
• Services that are deemed taxable by the state in which they are performed. 

Services: It is the responsibility of any service provider to assess sales tax on taxable services provided to KCSR.  Any exemption forms provided by KCSR will not relieve the seller of the tax liability for any taxable service provided to KCSR.  These exemption forms are not valid for purchases of materials not directly related to rail operations or for any taxable services rendered to KCSR. 

Suppliers with questions regarding whether or not sales tax applies should contact Brett Harrel in the KCSR tax department prior to billing.  All information provided herein is intended as a convenient source of tax information.  This information is general in nature, is not complete, and may not apply to your specific situation.  Before relying on this information, suppliers and service providers should consult their own tax advisor regarding such issues.  KCSR makes no warranties and is not responsible for any use of this information or for any errors or inaccuracies resulting from its use.