Notice 05-06
New Contractor, Contractor-Retailer, Fabricator Sales Tax Guides
The Department has issued the following new sales tax guidelines,
which will take effect on July 1, 2005:
Sales Tax Guidelines for Contractors and Contractor-Retailers
Sales Tax Guidelines for Fabricators
Sales Tax Guidelines for Contractor-Fabricators and Contractor-Manufacturers
Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic
Products
These documents can be downloaded from the Department’s website, http://www.ksrevenue.org/forms-btreg.htm, or copies can be requested by calling our voice mail Forms Request Line at 785-296-4937.
To the extent that these guidelines are inconsistent with prior statements or interpretations issued by the Department, these guidelines shall control. Any of the above types of businesses, or suppliers, should obtain and read the applicable guides. The guidelines contain definitions of relevant terms and describe the sales tax collection, reporting and remitting duties for these types of businesses.
Sales Tax Guidelines for Contractors and Contractor-Retailers describe the sales tax duties of businesses in the building and construction industry. The guidelines identify types of construction services that are taxed when done to "commercial property," i.e., existing, nonresidential buildings, structures, and other real property, but which would be exempt when done to “residential property” or as part of “original construction.” Further identified are transactions considered to be retail sales with set-up services (such as with sales and installation of appliances and electronic products, signs, window treatments, drapery, exercise equipment, above-ground swimming pools, locks).
Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic Products describe the sales tax duties of businesses that sell or install, repair or service appliances (such as refrigerators, freezers, ranges, ovens, dishwashers, gargage disposals, trash compactors, window air-conditioners, etc.) or electronic products (such as televisions, computers, radios, receivers, amplifiers, satellite receivers, satellite dishes, computer accessories, electronic control systems, etc.). The sale to the consumer and set up at the consumer’s location of an appliance or electronic product is considered a retail sale. Charges for set up services are considered to be part of the retail sale and are taxable whenever the sale is taxable. Set-up charges do not become exempt when delivery and set-up occur during the original construction of a building or during the reconstruction, restoration, remodeling, renovation, repair, or replacement of a residence.
Sales Tax Guidelines for Fabricators describe the sales tax duties of the following types of businesses:
(1) Copy and duplicating services.
(2) Desktop publishing companies.
(3) Dental laboratories.
(4) Drapery and drapery hardware.
(5) Meat cutting and butchering services.
(6) Photographers.
(7) Sign makers.
(8) Tailors and seamstresses.
(9) Taxidermists.
Sales Tax Guidelines for Contractor-Fabricators
and Contractor-Manufacturers
describes the tax collection, remittance and reporting duties for businesses
that make and install the following products:
(1) Awnings.
(2) Drapery and drapery hardware
(3) Elevators and escalators.
(4) Manufacturers that install the articles they manufacture
(5) Monuments and gravestones.
(6) Ornamental iron.
(7) Pre-fabricated roof and floor trusses, pre-fabricated wall panels, pre-fabricated
stairs, pre-cast concrete floors or walls, and other similar products.
(8) Ready-mix concrete.
(9) Sheet metal fabricators.
(10) Signs.
Taxpayer Assistance
If you have questions about this notice or its application, please contact the department at (785) 368-8222, or visit our web site at www.ksrevenue.org.