Lawn & Garden Care, Pest Control, Fertilizer Application, Landscaping & Retail Sales (EDU-30)
Kansas tax law does not impose a sales tax on fees charged for providing any of the following services:
- lawn mowing & trimming
- tilling, plowing & soil preparation
- raking (including power raking)
- tree, bush, shrub & stump removal
- tree, bush and shrub trimming & pruning
- stump grinding
- snow shoveling & plowing
- applying ice-melt or sand to driveways, sidewalks or parking lots
- hauling away brush, debris
- soil analysis testing
- back-flow testing
Pest Control & Fertilizer Application
The application of herbicides, pesticides or fertilizers within the state of Kansas is a taxable service. Anyone applying herbicides, pesticides or fertilizers in, on or around homes, businesses or commercial property for a fee must charge their customer Kansas sales tax. No Kansas sales tax is due on the application of chemicals, fertilizers, or other substances on agricultural property.
The rate of sales tax due is the rate in effect where the application is made. For a complete list of current sales tax rates for all taxing jurisdictions in Kansas see, Publication KS-1700, Sales Tax Jurisdiction Code Booklet. This publication, as is all publications, is available from the Kansas Department of Revenue’s web site: www.ksrevenue.org.
Sales tax should be charged on the total amount charged the customer for applying the herbicide, pesticide or fertilizer, to include trip charges, fuel surcharge, etc., including fees charge for application at a residence.
The applicator (retailer) may purchase the herbicides, pesticides or fertilizers intended for application exempt from Kansas retailers’ sales or compensating use tax with a Kansas Resale Exemption Certificate. See Publication KS-1520, Kansas Exemption Certificates.
Purchase of equipment or machinery to apply said herbicides, pesticides or fertilizers is subject to Kansas sales or compensating use tax.
Applicators should obtain a “Tax Exempt Entity Exemption Certificate”, issued by the Kansas Department of Revenue from any entity that claims to be exempt from sales tax. No exemption certificate = sales tax must be collected.
No sales tax is due if the applicator is applying herbicides, pesticides or fertilizers on a project for which the customer provides a Project Exemption Certificate issued for that project by the Kansas Department of Revenue.
Landscaping contracts are improvements to real property and are treated as construction contracts for Kansas sales tax purposes. The following are examples of construction contracts that landscapers may perform:
- building a deck, gazebo or water garden
- installing a walkway, sidewalk or driveway
- installing edging, poly or rock in landscape beds
- installing lighting
- planting flowers, shrubs, trees
- applying sod or seed
- installing timbers or building retaining walls
- installing irrigation or sprinkler systems
- topdressing an area with soil, rock, sand or fill
As a contractor or subcontractor, the landscaper must pay sales or compensating use tax on the cost of all plants, trees, bushes, flowers, shrubs, sod, seed, pipe, sprinklers, timbers, mulch, etc., and other materials, supplies and equipment used to complete the contract. The sales tax paid on these materials and supplies should be included as a part of the material costs to the customer, but the sales tax on these items should not be separately stated on the invoice. Sales tax is typically paid to the seller at the time materials are purchased. However, if sales tax is not paid at the time of purchase, the contractor or subcontractor should report the cost of the materials on their Kansas retailers’ sales tax return or Kansas Compensating Use tax return. As a general rule, contractors may only purchase materials that they will install for others without sales tax when the customer provides them with a Project Exemption Certificate. For additional Information on contractors and subcontractors see Publication KS-1525, Sales and Use Tax for Contractors, Subcontractors and Repairmen. Also see, Publication EDU-26, Sales Tax Guidelines for Contractors and Contractor-Retailers.
The fee charged for “installing” or “applying” tangible personal property is subject to Kansas sales tax when those services are performed on “commercial-remodel” jobs. Kansas does not charges sales tax on the labor fee for providing installation services performed at a residence – a place where people customarily live. Nor is sales tax due on the fee for providing installation services performed in connection is the “original construction” of a building or facility. Thus, contractors and subcontractors must charge their clients’ sales tax on the fee charged for installing or applying tangible personal property on “commercial-remodel” contracts.
The rate of sales tax due is the rate in effect where the application or installation is made. See Publications KS-1525 & KS-1700 for additional information.
If you sell shrubbery, plants, sod, trees, bushes, flowers, chemicals, fertilizers, garden materials, etc., without installation, you must collect sales tax of the total selling price (including delivery or shipping charges) when the customer takes deliver in Kansas. In like manner, if you sell or rent equipment within the state of Kansas, sales tax is due on the total selling or rental price. The rate of sales tax due is the rate in effect where the customer takes delivery. See Publication KS-1700. Retailers should purchase their inventory without sales tax by providing their supplier with a Kansas Resale Exemption Certificate. See Publication KS-1520.
Landscape contractors typically provide materials, plants, trees, etc. and install them. Retailers sell these items without installation. Contractor/retailers do both. Contractor/retailers should purchase their entire inventory without sales tax by providing their supplier with a Contractor/Retailer Exemption Certificate. See Publication KS-1520.
When a contractor/retailer makes a retail sale (no installation) - Kansas sales tax should be collected on the total selling price – including delivery charges. A Kansas sales tax exemption certificate should be taken from the seller for all exempt purchases and retained in the retailer’s records for at least 3 years. The rate of sales tax due is the Kansas sales tax rate in effect where the customer takes delivery.
When a contractor/retailer provides the materials and installs or applies them - Kansas sales tax is due on cost of materials removed from inventory for installation in construction jobs – even when the material will be subsequently removed from the state of Kansas and installed in another state. A contractor/retailer may only provide the materials without sales tax when the purchaser provides a Project Exemption Certificate. The rate of sales tax due is the Kansas sales tax rate in effect where the item is removed from inventory. Contractor/retailers would report the materials, at cost, on their Kansas retailers’ sales tax return. See Publication KS-1525 for an example.
Compensating Use Tax – Compensating use tax is due whenever an item purchased outside of Kansas is stored, used or consumed within the state of Kansas and no sales tax has been paid, or if one has been paid, it was at a lower rate of tax than the Kansas Sales/Compensating tax rate that is in effect at the location where the item will be used, stored or consumed. Compensating use tax is not due on inventory items that will be sold at retail. However, landscape contractors purchasing materials, supplies, equipment, etc. from outside of Kansas and using, storing or consuming them (by installing those materials for their customers) within Kansas are legally required to report and remit Kansas compensating use tax. To register for Kansas Compensating Use tax, see Publication KS-1216, Kansas Business Tax Application.
You must report and remit Kansas Compensating Use Tax when you:
- buy (or rent) equipment, supplies, materials directly or by mail, internet or phone order from a seller located outside of Kansas for use in Kansas – such as in a Landscaping Contract.
- buy (or rent) equipment, supplies, materials in another state for use in Kansas and the other state’s sales tax paid is lower than the Kansas sales/compensating use tax rate (the rate in effect where the item will be used, stored or consumed).
- buy items exempt from Kansas sales tax with a Kansas Resale Exemption Certificate (items purchased for resale) but, take the item(s) out of inventory for personal use.
Project Exemption Certificates – A Project Exemption Certificate (PEC) is issued by the Kansas Department of Revenue for specific projects. The requestor must complete an application (Form PR-76 or PR-70b found in Publication KS-1520) for each and every project. Application may be made online at KDOR’s web site. A PC allows contractors and subcontractor to purchase all materials without sales or compensating use tax and for all labor to install those materials without collecting sales tax. See Publication KS-1525 for additional information.
- EDU-26, Sales Tax Guidelines for Contractor and Contractor-Retailers
- EDU-27, Sales Tax Guidelines for Fabricators
- EDU-28, Sales Tax Guidelines Businesses that Sell and Service Appliances and Electronic Products
- EDU-29, Sales Tax Guidelines for Contractor-Fabricators and Contractor-Manufacturers
- Publication KS-1216, Kansas Business Tax Application
- Publication KS-1510, Kansas Sales and Compensating Use Tax
- Publication KS-1520, Kansas Exemption Certificates
- Publication KS-1525, Sales and Use Tax for Contractors, Subcontractors & Repairmen
- Publication KS-1700, Sales Tax Jurisdiction Code Booklet