Sales Tax Guidelines for Contractors and Contractor-Retailers (EDU-26)

Date Issued: 5/31/05

Tax Types: Sales and Use Tax

Department of revenue guidelines are intended to help you become more familiar with Kansas tax laws and your rights and responsibilities under them. While every attempt is made to provide you with information that is consistent with Kansas tax statutes, regulations, and court decisions, nothing in this publication supersedes, alters, or otherwise changes any provision of the Kansas tax law. Department guidelines are not legal rulings and any information that is inconsistent with Kansas tax laws is not binding on either the department or the taxpayer. Not every potential tax situation is covered in these guidelines. If you have any questions about how Kansas sales and use tax laws apply to your business, please visit the department's Policy Information Library on our web site, www.ksrevenue.org, or call the department's Taxpayer Assistance Center at 1-785-368-8222.

Application of this publication. This publication explains how Kansas sales and use tax applies to contractors and subcontractors who improve real property. It also explains how these taxes apply to contractor-retailers. A contractor-retailer is a person or business that sells goods at retail in addition to performing construction contracts. Because some of the accounting rules for them are different, contractors and contractor-retailers are discussed in separate sections of this publication.

This publication should be read with other publications that apply to your business. These may include the Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic Products, the Sales Tax Guidelines for Fabricators, and the Sales Tax Guidelines for Contractor-Fabricators and Contractor-Manufacturers. Other materials that you'll need to review are the information guides and other publications listed at the end of these guidelines that pertain to your business.

Effective date for this publication. The guidelines in this publication shall take effect on July 1, 2005. These guidelines supersede and revoke all prior department letters, information guides, and other publications that discuss the issues that are addressed here.

Registration. Before you begin to do business in Kansas, you must register with the department of revenue. You can do this by visiting the KSBusinessCenter at www.kansas.gov and following the appropriate instructions. This web site is a partnership between the Kansas Department of Revenue, the Kansas Secretary of State's Office, the Information Network of Kansas, and other business-oriented state agencies. The goal for the site is to provide a central location where Kansas businesses can electronically file all of the reports required by Kansas law. While the web site is under development, it already contains a great deal of useful information for new businesses.

You can also register by submitting a completed Business Tax Application Form (CR-16) to the department. Form CR-16 with instructions is published in the Business Tax Application Booklet, Publication KS-1216. You can obtain a copy of Publication KS-1216 from our website at www.ksrevenue.org or by calling the department's forms request line at 1-785-296-4937. Both resident and nonresident contractors who do work in Kansas must register.

Whichever way you register, you must complete the application form with care since the information you provide will determine how the department registers your business for state tax purposes. Depending on how your accounts are set-up, you may be required to file sales and use tax returns either annually, quarterly, or monthly. If you are not approved to file your sales and use tax returns electronically, the department will routinely mail you a tax return that is printed with your business name and mailing address, your account number, the tax type being reported, the reporting period, and the due date. You must file a return even if you don't receive one in the mail. You can request a blank return by calling the forms request line at 1-785-296-4937 or you can download one from our web site at www.ksrevenue.org. You must file a timely return for each reporting period, including those when you're reporting zero tax.

Glossary --- As used in this publication:

Construction-manager means a person or business that provides consulting or coordinating services and oversees a construction project for a property owner. A person or business that performs labor services on a construction project cannot be a construction-manager for that job and must register with the department as a contractor or contractor-retailer and pay and collect sales tax accordingly. The services provided by a construction-manager, which can include consulting, coordinating the work of specialty contractors, and furnishing project progress reports, are not enumerated services and are not subject to sales tax.

Construction contract means a contract for constructing, erecting, improving, altering, or repairing a building or structure that is part of real property or for otherwise improving real property. The term "construction contract" does not include a sales contract for the sale and installation of appliances, electronic products, venetian blinds, draperies and drapery hardware, and certain other listed products. See Contractor-Retailer Guidelines: Other transactions that are always treated as retail sales with set-up.

Contractor means a person or business, including contractor-retailers, that contract to furnish materials and labor to construct, alter, repair, or improve real property, including buildings and other structures. A contractor expends its labor and skill to convert building materials into real property improvements. A contractor sometimes contracts to furnish labor only, using materials provided by the property owner or by another contractor. Contractor means general contractor, subcontractor, or specialty contractor, unless the context indicates otherwise.

Contractor-retailer means a person or business that acts as a contractor when it performs construction contracts and as a retailer when it sells tangible personal property at retail. A contractor-retailer holds itself out as providing construction services and operates retail showroom or otherwise maintains an untaxed resale inventory to sell merchandise from. A contractor-retailer withdraws merchandise from the untaxed resale inventory to use in their construction projects and to sell at retail.

Materials means construction materials and components, and other tangible personal property incorporated into or affixed to real property by contractors or contractor-retailers in the performance of a construction contract and which, when combined with other property, loses its identity to become an integral and inseparable part of real property. Materials are items intended to become part of a building, structure, road, parking lot, or any other addition, improvement, repair or alteration of real property.

Materials only contract is a retail sale.

Mixed contract means a single contract that calls for the performance of construction services and for the retail sale of tangible personal property. A contractor-retailer who enters into a mixed contract is treated as the consumer of the construction materials that it uses on the project and as the retailer of the goods that it sells under the contract.

Over-the-counter sale means any retail sale of materials, fixtures, or other items made at the seller's business. The seller does not agree to have its employees or a third-party install or affix the item being sold to real property.

Real property includes land and structures that are attached to land, such as buildings, structures, roads, highways, parking lots, driveways, sidewalks, fences, railroad tracks, grain elevators, transmission lines, bridges, and storage bins.

Retailer includes a person or business that sells building materials and other tangible personal property at retail. Contractor-retailers are treated like retailers when they sell tangible personal property at retail without agreeing to install it and when they sell appliances, electronic products, and certain other listed items at retail and agree to provide set up services. See Contractor-Retailer Guidelines: Other transactions that are always treated as retail sales with set-up; Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic Products.

Retail sale includes the sale of building materials, supplies, equipment, or other tangible items to the final user or consumer that are not being installed by the seller or its agent under a construction contract.

Sales or selling price is defined at K.S.A. 2004 Supp. 79-3602(ll) to mean "the total amount of consideration . . . for which personal property or services are sold . . . ." The definition states that no deductions are allowed for, among other things:

  • the cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller and any other expense of the seller;
  • delivery charges; and
  • installation charges.

Set-up services include placing an appliance, electronic product, or listed item in working order by assembling it, sliding it into an existing opening, locating and fixing it in place, connecting it to existing water or gas services, plugging or wiring it into existing electrical services, connecting it to existing discharge pipes or vents, programming its controls, and so forth. When arranged at the time of a retail sale, charges for set-up services are considered to be part of the selling price and are taxed whenever the sale of the property is taxed. See Contractor-Retailer Guidelines: Other transactions that are always treated as retail sales with set-up; Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic Products.

Sourcing means determining the tax situs of a transaction. The tax situs determines which local tax applies to sales made and services performed in Kansas.

Tax base means the dollar amount on which sales tax is computed. It is the amount that is multiplied by the sales tax rate to yield the amount of sales tax due from the customer. The tax base for retail sales is the sales or selling price of the goods or services being provided.

Contractor Guidelines.

Overview: The two basic rules. There are two basic rules that contractors must follow:

  1. Contractors must pay sales or use tax as consumers when they buy materials and supplies to use on their in-state and out-of-state construction projects.
  2. Contractors must collect sales tax as retailers when they bill their customers for the taxable labor services they perform in Kansas on their construction projects.

This treatment of contractors as consumers of their materials and retailers of their services has been part of Kansas law since 1972. Department of Revenue Bulletin, Vol. V, No. 1, January, 1972. Contractors must pay sales tax on their purchases whether or not their labor services are taxed. The only exception to this rule is when a project exemption certificate has been issued for a project, and the contractor timely presents a copy of the certificate to its vendors when buying materials and supplies for the project. See Project Exemption Certificates, below.

If you are a contractor who performs taxable labor services, you must collect sales tax on the taxable services from the person who pays you for the work. The "customer" who pays you for your services may be the property owner, the general contractor, or another subcontractor. See Kansas jobs where labor services are taxed, below. If your labor services aren't taxed, you do not charge or collect sales tax from the person who pays you.

It is important to understand why contractors pay sales tax when they buy construction materials instead of buying materials tax exempt and charging sales tax to the property owner. Contractors pay sales tax on their material purchases because sales tax is imposed on "retail sales of tangible personal property." These are sales to consumers or "final users" of anything that can be seen, weighed, measured, felt, or touched and that are not part of real property.

A contractor who agrees to construct a building is not contracting to sell lumber, cement, siding, roofing, and other building materials. Rather, the contractor is agreeing to apply his or her skill and labor to transform the construction materials into a completed building. When the building is accepted by the property owner, the nails, lumber, and other materials have become part of real property. These materials are no longer tangible personal property whose transfer is taxed under the Kansas sales tax act.

The last transfer of construction materials as tangible personal property is the transfer to the contractor. Consequently, sales tax laws treat contractors as being the final user or consumer of the construction materials and supplies they buy and use to improve real property. This is why contractors pay sales tax when they buy materials and supplies instead of charging sales tax when they bill the property owner to recoup their expenses.

Because contractors are required to pay sales tax on all of their purchases, contractors cannot maintain an untaxed inventory of materials, parts, or other property. A contracting business that maintains an untaxed inventory is a contractor-retailer and must account for sales tax accordingly.

Paying tax on materials and supplies. When you, the contractor, buy materials and supplies for use in Kansas, you must pay the Kansas sales or use tax that is charged to you by the vendor. The vendor's charges for delivering the good to you are part of the tax base and are taxed whenever the sale is taxed. The location where you take delivery determines which local tax is collected.

Accruing tax on untaxed purchases. Sometimes when you order merchandise from an out-of-state retailer, the retailer does not charge you Kansas tax. Occasionally, a Kansas retailer may not charge you sales tax. When this happens, you must self-assess or "accrue" the tax and pay it to the department. As used here, the term "accrue" means to record your untaxed purchases and then self-report the tax owed on your next tax return. How to do this is explained in the next paragraph. The local tax to accrue is the one in place where you took delivery in Kansas, or, if you bought an item in another state, where you first used it in Kansas.

You report the tax that you've accrued by entering the total sum of your untaxed purchases on the appropriate line on your next tax return. On a Form ST-16 return, this is Part I, Line 2: "Enter the cost of tangible personal property consumed or used by you that was purchased without tax. For example, items removed from inventory and used by you." On a Form ST-36 return, the appropriate line is under Part III, Column 3: "Enter your cost of tangible personal property consumed or used by you that was purchased without tax." The total amount that you accrue may include additional Kansas tax if you bought something in another state and paid that state's sales tax. This reporting requirement is explained in the next paragraph.

When you pay sales tax to another state and bring the merchandise back into Kansas to use or install here, the tax that you paid to that state is treated as a credit against the tax you owe to Kansas. To claim the credit, you must determine the difference between the amount of state and local tax that you paid to the other state and the amount of state and local tax that you would have paid to Kansas had you purchased the merchandise here. If you paid more tax to the other state than you would have been paid to Kansas, you owe no additional Kansas tax and accrue nothing. If you paid less tax to the other state than would have been paid to Kansas had the purchase been made here, you are allowed a credit equal to the amount of tax that you paid to the other state. You must accrue Kansas tax on the difference between the tax that you would have paid to Kansas and the tax that you actually paid to the other state. You accrue this difference based on the combined state and local taxes for Kansas and the other state. The local Kansas tax rate to use when figuring the credit is the local combined rate in place where you took delivery in Kansas or the local combined rate in place where you first used the materials in Kansas if you took delivery in another state.

Contractors should also accrue tax if they intend to use materials that were purchased under a project exemption certificate but were not used on the project. See e.g. K.S.A. 2004 Supp. 79-3606(d); K.S.A. 2004 Supp. 79-3606(aaa). If you owe consumer's use tax and are not registered to report it, you should call Taxpayer Assistance Center at 1-785-368-8222 and ask to be registered to report consumer's use tax.

Recovering your expenses from your customer. You recover your expenses on a construction job from the person who pays you. This may be the property owner, general contractor, or a subcontractor. Your expenses include the materials you purchased along with the sales tax that you paid on those materials. If you list material costs on your customer billing, the material cost should be shown as the lump sum that includes the tax that was paid. Your customer invoice should not separately state the price that you paid for materials and your sales tax payment. As has been discussed, the sales taxes that you pay are part of your expenses. If you list the sales taxes that you paid as a separate line item, your customer may think that it's sales tax that you're collecting and reporting, which it isn't.

You may mark-up your material costs on your customer's invoice, but you do not charge sales tax on the marked up amount as a line item charge. As has been discussed, when you perform a construction contract, you are not selling construction materials. You should have paid the correct amount of sales tax as a consumer when you bought the materials.

Repairs to real property. If you install, service, repair, or replace items such as furnaces, central air conditioners, wiring, plumbing, roofing, or siding, then you've contracted to improve real property. These transactions are treated as construction contracts and not as retail sales of the repair parts or materials being provided. You, as a contractor and consumer of the things that become real property, must pay sales tax when you buy the parts or materials. When you bill your customers, you should lump the price that you paid for the materials together with the sales tax that you paid. This combined amount is the material cost that you're recovering. Do not list the tax that you paid as a separate line-item amount on customer invoices. Itemizing the tax that you paid can appear to be sales tax that you're charging to the customer. Sales tax should only be listed as a line item charge on customer billings when you're charging sales tax for your taxable services. How to do this is explained below in the section entitled: Kansas jobs where services are taxed.

These rules govern the tax treatment of taxable repairs to real property. These rules do not apply to repairs of tangible personal property or to repairs of appliances or electronic products, whether built-in or free standing. How repairs to appliances and electronic products are taxed is explained in the Sales Tax Guidelines for Business that Sell and Service Appliances and Electronic Products. In addition, the department has determined that that some businesses are always treated as retailers and some transactions are always treated as being retail sales. See Other transactions that are always treated as retail sales with set-up in the Contractor-Retailer Section, below. You must review this section to see if it discusses any of your business activities.

Contracts that you perform outside Kansas. Construction materials delivered to you in Kansas by a Kansas vendor for use on an out-of-state job are subject to Kansas tax. Materials delivered by a Kansas vendor to you directly at a construction site outside Kansas are not subject to Kansas tax, but may be taxed by the state of delivery. Kansas has no jurisdiction over construction services performed outside Kansas. This means that construction services performed outside the state are never subject to Kansas tax. However, such construction services may be taxed by the state where the services are performed.

When you order materials from out-of-state that you intend to use on an out-of-state job, you may claim a temporary storage exemption if the materials are delivered to you in Kansas from outside the state, segregated by you from other inventory, and then removed from Kansas and used on the out-of-state construction project. Because Kansas tax was not paid on these materials, you will owe sales or use tax to the state where you install the materials. You cannot claim the temporary storage exemption when you buy materials from a Kansas vendor. Materials delivered to you in Kansas by a Kansas vendor are taxable whether or not you intend to use them at a construction project in Kansas or in another state. Contractor-retailers may not claim the temporary storage exemption when they remove items from inventory to use on an out-of-state job.

Kansas jobs where labor services are taxed. A wide variety of construction services are taxed when done to existing, nonresidential buildings, structures, and other real property. This property is commonly referred to as "commercial property." These services include, but are not limited to:

  • building repairs
  • carpentry work
  • carpeting and flooring installation
  • work done on commercial and farm buildings
  • electrical work
  • elevator and escalator work
  • fence installation, including farm fences
  • foundation work
  • heating, air conditioning, and ventilation (HVAC) work
  • insulation work
  • line building, including electric and telephone lines
  • masonry and concrete work
  • painting, plastering, and wallpapering
  • parking lot work
  • plumbing
  • roofing
  • sandblasting
  • sidewalk installation and repair
  • siding installation
  • welding
  • work done on existing oil wells and on gathering systems
  • work done on pipelines
  • work done on railroad tracks and right of ways
  • service work done for telephone companies and public utilities including the installation or repair of poles, lines, substations, switching stations, pipelines, pumping stations, except for original construction labor services on distribution lines for municipal utilities and certain qualifying REC's, ; (See Revenue Ruling 19-2001-2), and
  • all other similar work.

If you're from outside Kansas and perform any of these taxable labor services here, you must register for Kansas sales tax purposes and collect Kansas tax on the taxable services that you perform here. You collect the tax from the person who pays you for your work. This may be the property owner, the business that hired you, the general contractor, or a subcontractor. Even when you collect Kansas tax on your taxable services, you must continue to pay tax when you buy materials, supplies, and equipment, just as you do when labor services aren't taxed. You must also pay tax to any subcontractors and other businesses that bill you for their taxable labor services.

Charging and reporting sales tax on your taxable labor services. As a Kansas or out-of-state contractor, you have two options for billing and collecting sales tax on your taxable labor services. The starting point for both billing options is the same. It is to determine the amount that equals the total amount that you're billing to the person for the job, less your payments for tax-paid materials and subcontractor charges for the job, including the sales tax that you paid. This resulting amount is referred to as the "total receipts less tax-paid materials and subcontractor charges." When figuring this amount, you do not subtract out other overhead costs like mileage, insurance, permit fees, equipment rentals, meal costs, other taxes, or your other expenses.

When using the first billing option, you multiply the amount determined under the preceding paragraph (total receipts less tax-paid materials and subcontractor charges) by the state and local sales tax in place at the job site. You then bill your customer the resulting amount as a line-item charge for sales tax. This could be the property owner, general contractor, or a subcontractor. The gross receipts that you report for the job on your next sales tax return is the amount of the total receipts less tax-paid materials and subcontractor charges. You enter this amount on Part I, Line 1 of an ST-16 (Gross Sales/Receipts) or, on an ST-36, under Part III, Column 2 (Gross sales). If you report tax on more than one job on an ST-16 using this option, you account for each job in the manner set forth and then enter the sum for all the jobs on Part I, Line 1. For an ST-36, you enter the jobs under Part I, Line 1 of an ST-16 and list the correct taxing jurisdiction.

For the second billing option, you write "All Kansas sales taxes included" on any bid documents you prepare and on all of your customer invoices and billings. The statement "All Kansas sales taxes included" is placed on the customer invoice instead of a line-item charge for the sales tax you're collecting on your taxable services. Like the first option, your starting point for this approach is to determine the total receipts less tax-paid materials and tax-paid subcontractor charges. Unlike the first option, this amount is the lump sum of your taxable labor service charges and the tax owed on those charges. Because the lump sum includes both the customer's payment for your taxable labor services and the tax being collected on those services, you must separate out or "factor" the sales tax and gross receipts from this lump sum amount.

To factor out the sales tax owed on labor services, you divide the total receipts less tax-paid materials and subcontractor charges by one plus the combined state and local sales tax rates stated as a decimal. The local tax to charge is the one in place where the taxable services were performed. For example, if the combined state and local tax rate is 6.5%, you divide the total receipts less tax-paid materials and subcontractor charges by 1.065. This division yields the gross receipts to report on your next sales tax return as the taxable labor services you performed on the job. You enter the gross receipts on Part I, Line 1 of an ST-16 (Gross Sales/Receipts) or, on an ST-36, under Part III, Column 2 (Gross sales). (NOTE: Unlike in the first option, the gross receipts you report under this option do not equal your total receipts less tax-paid materials and subcontractor charges. Under this option, the sum of your total receipts less tax-paid materials and subcontractor charges is a lump sum that equals your gross receipts for taxable labor services plus the taxes being collected on those services.) The tax being reported on the labor services for the job will be the product of this amount (gross receipts) times the combined sales tax rate that applies to you services. For this example, the tax rate is 6.5%. If you report tax on more than one job during a reporting period, you account for each job in this manner and then enter the sum of all the jobs on the appropriate line of your tax return.

You can double check these figures because the tax that you report will equal the difference between the "total receipts less tax-paid materials and subcontractor charges" and the gross receipts that you enter on your return. Many contractors prefer using this option because, unlike the first, it doesn't reveal your material costs and labor charges. Under both options, your profit and overhead are taxed just like profit and overhead are taxed when a mechanic or repair shop bills its customers for repair services and parts.

The second option uses the same accounting that is used to report sales taxes on vending machine receipts. For example, when vending machine receipts total $350, the $350 is a lump sum of the taxable vending machine sales and the sales tax paid on those sales. When the sales tax rate is 6.5%. the vending machine operator reports gross receipts of $328.64 ($350/1.065) and sales tax of $21.36 ($350 - $328.64). These figures can be double checked by multiplying the gross receipts being reported by the tax rate, which yields the amount of tax being reported. ($328.64 X 6.5% = $21.36). As noted, the sum of these two amounts equals $350 dollars, which is the amount that was removed from the vending machine.

A helpful accounting tip for taxable jobs is to routinely attach a note showing the total cost of your materials and supplies (including tax) for the job, as well as any subcontractor charges on which you paid sales tax, to the office copy (not the customer copy) of your customer invoices. This will allow you to quickly determine the total amount that you've charged your customers during a reporting period and the total amount of your tax-paid materials and tax-paid subcontractors for that period --- your total receipts less tax-paid materials and subcontractor charges. You can complete your sales tax return by collecting the office copies of your invoices for the period and totaling the amount charged to your customers and the amount noted as tax-paid materials and subcontractors costs. You then apply Option 1 or 2 to determine the sales tax to report to the department. This tip is helpful only for reporting tax on your taxable labor services.

While you are required to collect the sales tax when billing your customer for taxable labor services, you must also pay the sales tax to any subcontractor that bills to you for its work on the project. As has been discussed, these subcontractor charges and the tax being paid on the charges are not included in the total receipts less tax-paid materials and subcontractor charges that you use to determine the sales tax due on your taxable labor services.

Kansas jobs where labor services are not taxed. When you work on a construction project where your labor services aren't taxed, your only sales tax responsibility is to pay or accrue sales or use tax on all of your purchases. This includes purchases of materials, supplies, tools, and equipment. Your labor services aren't taxed when you're working on: (1) a new residence that is being built or an existing residence that is undergoing reconstruction, restoration, remodeling, renovation, repair or replacement; (2) the first or initial construction of a nonresidential (commercial) building; (3) the addition of a new room or additional floor to the exterior of an existing building; or (4) the first or initial construction of a mill, plant, refinery, oil well, gas well, feedlot, or distribution line owned by a municipal utility or a qualifying rural electric cooperative. Improvements made to land that abuts a qualifying construction project are also exempt when the improvements are made as part of the work on the project.

There is no sales tax on your labor services when the project you're working on is a building or one of the structures identified in the preceding paragraph that is being repaired or replaced to fix damage caused by fire, tornado, lightning, explosion, earthquake, or a flood caused by a river or stream overflowing its banks (not a broken pipe). This exemption does not apply when the damage was caused by a windstorm, hailstorm, rainstorm, or snowstorm. As noted, you must pay sales tax when you buy materials and supplies for these projects even though you do not collect tax on your labor services.

Construction labor services performed on highways and bridges are exempt from sales tax. Such work is always exempt whether it is done to construct new highways or highway bridges or to reconstruct, restore, replace, or repair existing highways or highway bridges. Your purchases of materials for these projects are taxable unless the government entity has secured a project exemption certificate for the project. Project exemption certificates are not issued to the State of Kansas, its agencies, or to Kansas Indian tribes for work done on their reservations.

Project exemption certificates. When you contract with certain exempt entities, including churches, synagogues, non-profit hospitals, schools, zoos, Kansas political subdivisions, and federal governmental agencies, the entity may present you with a project exemption certificate. Project exemption certificates are issued by the department of revenue to qualifying entities or are self-issued by some qualifying entities themselves. Each certificate contains a project exemption number that identifies a particular construction project.

When you buy materials for the construction project, you must give your Kansas vendors a copy of the project exemption certificate. Your vendor will enter the project number on your purchase invoices in lieu of charging you sales tax. Project exemptions are intended to reduce the building costs for qualifying entities by not taxing materials sold for the entity's real property projects. Your labor services are never taxed for work done under a project exemption certificate.

Many exempt entities that are entitled to secure a project exemption certificate fail to do so. When this happens, you must pay sales tax on your purchases. Bidding documents typically inform potential contractors whether or not the organization intends to secure a project exemption certificate for the job.

You must pay sales tax when you buy materials and supplies to use on construction contracts with state agencies and Indian tribes. Project exemption certificates are not issued to the State of Kansas, its agencies including the Kansas Department of Transportation, or to Kansas Indian tribes for work done on their reservations. A Kansas vendor may not honor exemption certificates from the State of Missouri or its agencies or from any other state for merchandise delivered in Kansas. Similarly, out-of-state vendors may not honor a Kansas project exemption certificate if you buy and take deliveries of materials in their state.

Entities that are exempt on their direct purchases. Many organizations are exempt on their direct purchases but are not authorized to secure a project exemption certificate that allows their contractors to buy construction materials tax exempt. When you do work for these organizations, you should secure a regular exemption certificate from them to exempt your labor charges. As stated, contractors may not use this kind of an exemption certificate to buy construction materials tax exempt.

An exempt organization's exemption only extends to direct purchases made by that organization. This means that on a project that involves a general contractor and subcontractors, only the labor services performed by the general contractor for the exempt entity are tax exempt. Subcontractors do not work directly for the exempt organization. Therefore, subcontractors that are paid by the general contractor or by another subcontractor must charge sales tax on their labor services.

Resale exemption certificates. Since labor services were first taxed in the 1970's, the department has not allowed contractors to accept resale exemption certificates. This avoids confusion because, on jobs where services are taxed, the general contractor and each subcontractor are required to collect sales tax from the person who pays them. Double taxation is avoided since tax-paid materials and tax-paid subcontractor charges are excluded from the tax base for the labor services. See Charging and reporting sales tax on your taxable labor services, above.

This rule also applies when a contractor does work for certain retailers. For example, certain monument dealers charge customers a lump sum amount for a memorial, its engraving, and its installation. The dealer later contracts with a third-party contractor to build a cement base at the cemetery to support the monument. The contractor should pay tax when it buys cement and charge the dealer sales tax on its labor services. The monument dealer is obligated to pay the sales tax that the contractor charges on its labor services.

To report the appropriate sales tax and to avoid double taxation, the monument dealer should report its receipts from the selling price of the monument, less the tax-paid contractor charges, under "gross sales." Reducing the taxable gross receipts being reported by the total amount charged by the contractor for its taxable services provides the dealer with a credit for the sales tax that the contractor paid when it bought cement and other materials and that the contractor collected on its construction services. Retailers may use this accounting method only when a third-party contractor charges them for taxable labor services and the retailer is collecting tax from its customer on the total selling price being charged to the customer. Contractors may never use this accounting method.

It is important to note that while real property contractors cannot accept exemption certificates for their labor services, exemption certificates may be issued for labor services performed on tangible personal property. When this is done, the business that issues the certificate is liable for charging and collecting sales tax on the entire customer billing, which will include the labor service charges that were performed under the exemption certificate. For example, an automobile repair shop may take a customer's automobile to a muffler specialty shop for a muffler replacement. The repair shop can give the muffler shop a resale exemption certificate. When it bills the customer, the repair shop must collect sales tax on the entire billing, which will include the charges from the muffler shop and any mark-up on those charges.

Contractors who maintain a tax-paid inventory. Occasionally, contractors accumulate and maintain a small inventory of tax-paid materials and supplies from their previous construction projects. From time to time, they may sell items from this tax-paid inventory to customers, friends, neighbors, or employees. Unlike contractor-retailers, these contractors do not operate a showroom or otherwise hold themselves out to the general public as selling merchandise at retail.

Many of these contractors are registered to report sales tax on the taxable construction services they perform. Contractors who sell materials from their tax-paid inventory and who are not registered should register as retailers to report their retail sales to customers, friends, neighbors, or employees. Like contractors who are registered to report sales tax on their taxable labor services, these contractors should not claim resale exemption when they buy materials and supplies. They should continue paying sales tax on all of their purchases.

When making a sale from the tax-paid inventory, the contractor should collect state and local sales tax on the total amount charged to their customer. To report the appropriate tax, the contractor should report the receipts from the sale less its tax-paid inventory cost under "gross sales." This provides the contractor with a credit for the tax that the contractor paid on the purchase of the merchandise. If a contractor cannot determine which local tax that was paid at the time of purchase, the contractor may assume that it is the same local tax that is being charged to the customer. This procedure can only be used by contractors that do not operate a retail showroom, maintain an untaxed resale inventory, or otherwise hold themselves out to the public as making retail sells.

Articles fabricated or manufactured away from the job site. Some businesses fabricate or manufacture articles that they install during the performance of a construction contract. These businesses should review the Sales Tax Guidelines for Contractor-Fabricators and Contractor-Manufacturers, which contains more explicit instructions for them.

Articles fabricated at the job site. Some contractors haul equipment to the job site that they use to form metal roofing or gutters and downspouts from rolls of steel or aluminum. Other contractors use similar equipment to form steel 2x4's for use in framing. Contractors sometimes use portable mixers to make concrete at the job site.

For these businesses, the fabrication done at the job site is an integral part of performing their construction contract. These businesses are treated as contractors. This means that they are required to pay sales tax at the time they take delivery of the rolls of steel or aluminum. They also are required to pay sales or use tax on the equipment they buy and use to form the articles that they install. Contractors may not claim the integrated plant exemption extended in K.S.A. 2004 Supp. 79-3606(kk) when they buy their equipment.

Surety bonds for nonresident contractors who do work in Kansas. By law, nonresident contractors are required to post a surety bond for each Kansas project they work on if either the total project price or the compensation received by the contractor is more than $10,000. K.S.A. 79-1009. This requirement is waived for nonresident contractors who are registered with the Kansas Secretary of State as a foreign corporation authorized to do business in Kansas. These surety requirements for nonresident contractors are explained in more detail in the Business Tax Application Booklet, Publication KS-1216.

Withholding by contractors. How you complete the Business Tax Application Form will determine how the department registers you for withholding tax. Withholding is the practice of deducting a certain amount from an employee's salary or wages and paying it to the state and federal governments for income tax and social security purposes. You must withhold Kansas income tax for both resident and nonresident employees who perform services in Kansas.

Workers compensation and Kansas unemployment tax. These laws are administered by the Division of Workers Compensation and the Division of Employment Security, which are part of the Kansas Department of Human Resources. You can contact Workers Comp by calling 1-785-296-3441. Human Resources can be reached at 1-785-296-7082.


Contractor-Retailer Guidelines.

Dual operators. A contractor-retailer is a business that holds itself out as being both a retailer that sells merchandise to the public and a contractor that improves real property. If you're a contractor who operates a retail showroom, who maintains an untaxed resale inventory, or who otherwise holds yourself out to the public as a retailer, then you're a contractor-retailer. Special accounting rules apply to contractor-retailers since they operate a business that sells the same kinds of things at retail that they use to perform construction contracts. Businesses that operate as contractor-retailers include home improvement stores, plumbers, heating and air-conditioning businesses, electricians, lighting businesses, lumber yards, and hardware stores whose employees do contracting work.

Some contractor-retailers sell appliances and electronic products such as televisions, computers, audio-video equipment, radios, satellite dishes, and other similar merchandise. In addition to reviewing this publication, these businesses should consult the Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic Products. It contains specific instructions about how Kansas sales tax applies to the sale, set-up, and repair of appliances and electronic products.

Other businesses fabricate or manufacture articles that they sell at retail or install during the performance of a construction contract. These businesses should review the Sales Tax Guidelines for Contractor-Fabricators and Contractor-Manufacturers, which contains more explicit instructions for them.

In addition to the transactions discussed in these two publications, some transactions are always treated as retail sales and not as construction contracts. These transactions are listed below in the section entitled: Other transaction that are treated as retail sales with set up services. These transactions include as sales and set up of exercise equipment, venetian blinds and window shades, draperies and drapery hardware, and sales and services provided by locksmiths, among others. Contractor-retailers should review this section carefully and determine whether or not their businesses engages in any of the listed activities.

Basic rules for contractor-retailers. Like a retailer, a contractor-retailer may claim resale exemption when it buys merchandise for its resale inventory. You, as a contractor-retailer, do this by giving a completed resale exemption certificate to vendors that sell you merchandise for your resale inventory. As with every other retailer, a contractor-retailer is responsible for self-reporting or accruing sales tax on any goods taken from inventory and used in their business. K.S.A. 79-3603(l)(2). This includes construction materials and supplies that the contractor-retailer takes from inventory to use in its construction jobs. A contractor-retailer should accrue sales tax on the cost of merchandise removed from inventory --- not on the price at which the merchandise is offered for sale to the public.

To "accrue" tax, a contractor-retailer enters the cost of merchandise taken from inventory on the appropriate line on its sales tax return. On a Form ST-16, this is Line 2, Part I: "Enter the cost of tangible personal property consumed or used by you that was purchased without tax. For example, items removed from inventory and used by you." On a Form ST-36, the appropriate line is the line assigned to the location of the resale inventory under Part III, Column 3: "Enter your cost of tangible personal property consumed or used by you that was purchased without tax."

This is the same accounting that all businesses use to accrue tax on: (1) merchandise removed from an untaxed resale inventory and used in their business; and (2) untaxed purchases when a vendor failed to charge them the correct Kansas sales or use tax. It is the same accounting contractors must use to pay tax on materials that are purchased under a project exemption certificate but not used on the project. How to accrue tax is discussed at length above in the Contractor Guidelines: Accruing tax on untaxed purchases.

Tax must be accrued during the reporting period when the merchandise is taken from inventory. The local sales tax to accrue is the one in place at the location of the resale inventory. As with other businesses, contractor-retailers must pay sales tax when they buy construction equipment and other items to use in their business, such as office equipment, office supplies, cash registers, shelving, construction equipment, tools, motor vehicles, and so forth.

Taxing construction contracts performed by contractor-retailers. When a contractor-retailer performs a construction contract, the contractor-retailer is treated as the consumer of the materials and supplies that it uses and as the retailer of the taxable construction services it performs. This is the same treatment accorded contractors. See Overview: The two basic rules, above. The two basic rules, restated for contractor-retailers, are:

  1. Contractor-retailers must accrue sales tax as consumers when they remove materials and supplies from their untaxed resale inventory to use on their in-state and out-of-state construction projects.
  2. Contractor-retailers must collect sales tax as retailers when they bill their customers for the taxable labor services they perform in Kansas on their construction projects.

The only difference in applying these rules is that contractors pay sales tax when they buy construction materials, while contractor-retailers claim resale exemption on their purchases and accrue sales tax when they remove materials and supplies from their untaxed resale inventory to use in their construction projects.

--- How contractor-retailers account for tax on their construction contracts when labor services are exempt. When construction services are not taxed, a contractor-retailer's only tax reporting duty is to accrue tax on the cost of materials, supplies, and equipment taken from inventory for use on its construction projects. K.S.A. 2004 Supp. 79-3603(l)(2). The kinds of projects where construction services are not taxed are discussed above in the Contractor Guidelines in the section entitled: Kansas jobs where labor services are not taxed. Construction services are not taxed on jobs that qualify as original or residential construction projects.

Under the destination-based sourcing rules, the local sales tax on merchandise removed from inventory is sourced to the inventory's location. The tax must be accrued whether the construction project is in Kansas or outside the state. When construction services are exempt, the contractor-retailer does not collect sales tax from the person who pays him.

--- How contractor-retailers account for tax on their construction contracts when labor services are taxed. When construction services are taxed, contractor-retailers must follow the two basic rules. They must: (1) accrue tax on the cost of materials removed from their resale inventory; and, (2) collect and remit tax on their taxable labor service charges. For taxable construction services, the local sales tax on materials and supplies taken from inventory is sourced to the location of the inventory, while the local sales tax on services is sourced to the location of the job site.

This means that when construction services are taxed, a contractor-retailer will often collect a different local sales tax on its services than it accrues on the materials it removes from inventory. Requiring materials and supplies to always be sourced to the inventory location simplifies reporting when labor services are exempt.

A contractor-retailer determines how much tax to collect on its taxable labor services by applying Options 1 or 2, which are discussed above in the Contractor Guidelines entitled Charging and reporting sales tax on your taxable labor services. For contractor-retailers, the "tax-paid materials" amount discussed under Options 1 and 2 is the cost of the materials and supplies removed from inventory for the job, plus the sales tax that is being accrued. If the contractor-retailer bought additional materials for the job and paid tax on the purchases, these material costs should be added to the "tax paid materials and subcontractor charges" amount. The contractor-retailer then determines the tax on its taxable labor services by applying Option 1 or 2.

Taxing retail sales of merchandise. When a contractor-retailer sells merchandise to a customer and is not responsible for affixing the merchandise to real property, the contractor-retailer is acting as a retailer and is required to collect sales tax on the full selling price charged to the customer. Local sales tax on these sales is sourced to the location where the merchandise is delivered to the buyer. As with other businesses, over-the counter-sales are sourced to the contractor-retailer's business location.

Taxing retail sales with set-up of appliances and electronic products. Retailers and contractor-retailers often agree to deliver and place the appliance or electronic product being sold in working order in the buyer's home or business. These services are referred to as "set-up services." See Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic Products. Set-up services include placing an appliance or electronic product in working order by assembling it, sliding it into an existing opening, locating and fixing it in place, connecting it to existing water or gas services, plugging or wiring it into existing electrical services, connecting it to existing discharge pipes or vents, programming its controls, and so forth. When a retailer or contractor-retailer sells, delivers, and sets up appliances or electronic products, it is required to charge sales tax on the total amount billed to the customer including the delivery and set-up charges. This amount is the "sales or selling price," which is the tax base for a retail sale. K.S.A. 2004 Supp. 79-3602(ll)(1). Local tax is sourced to the jurisdiction where the retail goods are delivered to the consumer. The residential and original construction exemptions do not apply to set-up charges since these charges are being taxed as part of the "sales or selling price."

Charges for these set-up services are taxable whenever the sale is taxable. K.S.A. 2004 Supp. 79-3602(ll). Set-up charges are included in the tax base regardless of whether: (1) the set-up services are performed by the retailer's employees or by a third party hired by the retailer; (2) the item being set-up becomes a fixture for real property or Uniform Commercial Code purposes; or (3) the set-up services are performed at a residence or at the same time as the original construction of a building or facility. K.S.A. 2004 Supp. 79-3602(ll).

A retailer that hires a third-party to deliver and set-up the appliances it sells may provide the third-party with a resale exemption certificate for the services. This may be done because the tax on delivery and set-up has been paid by the customer as part of the appliance's selling price, and the appliance is treated as being tangible personal property rather than as part of real property. Repairs done to appliances and electronic products are also taxable. See Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic Products.

Other transactions that are always treated as retail sales with set-up services. The department has determined that, in addition to appliances and electronic products, certain other transactions shall always be treated as retail sales with set-up services. These are:

? The sale and installation of manufactured and custom-made signs.
? The sale and installation of venetian blinds, window shades, and similar window treatments.
? The sale and installation of draperies, drapery hardware, and other similar window treatments.
? The sale and installation of exercise equipment.
? The sale and installation of above-ground swimming pools.
? All sales, services, and installation performed by locksmiths.

This is an exclusive list that does not encompass other transactions that are similar in nature. These transactions are always treated as retail sales with set up or installation services and not as a contractor-retailer's use of materials in the performance of a construction contract.

When making these sales, the contractor-retailer shall collect sales tax on the total amount charged to the customer for the retail sale, including the delivery and installation charges. Delivery and installation charges are taxed regardless of whether: (1) the delivery and set-up services are performed by the retailer's employees or by a third party hired by the retailer; (2) the item being set-up becomes a fixture for real property or Uniform Commercial Code purposes; or (3) the delivery and set-up services are performed at a residence or at the same time as the original construction of a building or facility. K.S.A. 2004 Supp. 79-3602(ll). Local tax shall be sourced to the location where the set-up services are performed.

If a contractor-retailer hires a third party to install any of these articles, the contractor-retailer may provide the third-party installer with an resale exemption certificate since the transaction is considered to be a retail sale of personal property and not a construction contract. Once installed, these articles shall continue to be treated as tangible personal property for sales tax purposes. This means that repairs to these articles are taxable and are not subject to the residential construction exemption. If a residential customer purchases these items and then hires a third party to install them, the third party installer shall charge sales tax on its installation charges. If a contractor-retailer has agreed to perform a construction contract and to sell and install any of the articles listed here, the contractor-retailer has entered into a mixed contract and should account for sales tax accordingly. See Mixed Contracts in Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic Products.

Advertising a sale at an installed price. When a contractor-retailer advertises merchandise at an installed price or at a lump-sum price that includes installation, the contractor-retailer must collect tax on the full advertised price. A contractor-retailer cannot advertise or otherwise represent to the public that it is selling something at an installed price, and then collect and remit tax on its cost.

Tax treatment synopsis for contractors and contractor-retailers.

(1) Appliance sales and repairs. See Sales Tax Guidelines for Businesses that Sell and Service Appliances and Electronic Products.

(2) Awnings. See Guidelines for Contractor-Fabricators and Contractor-Manufacturers.

(3) Cabinets. See Guidelines for Contractor-Fabricators and Contractor-Manufacturers.

(4) Carpentry. Persons engaged in the business of carpentry, as the trade is commonly known, are considered to be contractors who perform installation and application services. These services are taxable unless the work involves original construction or work on an existing residence that is undergoing reconstruction, restoration, remodeling, renovation, repair or replacement. Carpenters shall pay tax on their purchases of tools, building materials, and building supplies. When services are taxable, such as for commercial remodel work or work done on farm buildings, the carpenter shall charge and remit tax in accordance with Kansas jobs where labor services are taxed in the Contractor Guidelines. Carpenters, almost universally, are not contractor-retailers and shall not claim resale exemption on purchases of tools and supplies or on lumber and other materials. When carpenters work for an exempt entity, their material purchases are taxable unless the entity provides them with a copy of a project exemption certificate. See Project exemption certificates in the Contractor Guidelines.

(5) Carpet installation and floor covering. When wall-to-wall carpet or other floor covering is tacked, nailed, glued or cemented to sub flooring, the transaction shall be treated as a construction contract and the tax base for the carpet shall be the selling price charged to the contractor or the contractor-retailer's cost. When a Kansas carpet or floor-installation business contracts to install carpet using its own employees or third parties, the business shall accrue sales tax on their cost when they remove carpet or floor covering from inventory for use on jobs in Kansas or outside the state. When carpeting is sold without installation, sales tax shall be collected on the full selling price charge to the buyer.

(6) Drapery and curtain makers; drapery hardware. See Sales Tax Guidelines for Fabricators and Sales Tax Guidelines for Contractor-Fabricators and Contractor-Manufacturers.

(7) Electricians. An electrician may operate either as a contractor or as a contractor-retailer. Electricians who do not operate a showroom or otherwise do not hold themselves out as selling merchandise at retail should pay sales tax on all purchases, and report sales tax as a contractor. See Contractor who maintain a tax-paid inventory. Electricians who frequently sell at retail, such as those that operate a showroom, should register as contractor-retailers and account for sales tax accordingly. See Contractor-retailers.

(8) Excavation Services. Persons who provide taxable installation services for materials, such as pipe, conduit, or cement, and provide excavation services in connection with the installation, shall collect sales tax on the full amount charged to the customer unless the charges for excavation services are separately stated on the customer billing. Persons who perform excavation services without contracting to install materials shall not charge sales tax on the excavation services they provide.

(9) Garage door installers. Businesses that install garage doors are treated like contractors. Since garage-door installers are contractors, they should pay tax on their purchases of tools, garage doors, garage door rails, electric door openers, supplies, and other such purchases. Garage-door installation and repair services are taxable unless the work involves original construction or residential work. When these services are not taxed, such as for original construction or residential work, a garage-door installer who has paid tax on its purchases has no further sales tax reporting duties. When services are taxable, such as for commercial remodel work, the garage-door installer shall charge and remit tax in accordance with Kansas jobs where labor services are taxed in the Contractor Guidelines.
When a garage-door installer makes an occasional over-the-counter sale, such as the sale of a repair or replacement part or a garage-door opener, the installer should collect sales tax on the taxable gross receipts from the customer sale and report the amount collected less the tax-paid inventory as the gross receipts from the sale. See Contractors who maintain a tax-paid inventory, above under the Contractor Guidelines.

(10) Janitorial services and building maintenance. Kansas statutes tax maintenance services performed on an item of tangible personal property which, when installed remains personal property or becomes part of real estate. Janitorial services, which include trash removal, cleaning, washing windows, walls, and floors, vacuuming floors, vacuuming carpets, and cleaning other parts of a building, are not considered to be maintenance services and are not subject to Kansas sales tax. While janitorial services are not subject to sales tax, application and repair services are taxable. This means that charges for applying wax to floors are taxable.

(11) Landscape contractors and lawn services. The department intends to issue separate guidelines for lawn services and landscape contractors.

(12) Locksmith services. "Locksmith services" means services to repair, service, or install locks and locking devices, whether the lock is installed in real property, like a front door, on tangible personal property, like a motor vehicle or boat, or whether it is separate and apart from other property, like a padlock. Locksmiths are considered retailers and are required to collect sales tax based on the total amount being charged to their customers. Locksmith charges are not exempt because they are performed at a residence or during the original construction of a building or facility. Taxable locksmith charges include charges for opening a lock or door.

(13) Manufactured buildings, prefabricated buildings. These rules do not apply to building manufacturers.

(14) Monuments and gravestones. See Guidelines for Contractor-Fabricators and Contractor-Manufacturers.

(15) Nurseries that plant trees, plants, and other greenery. The department intends to issue separate guidelines for lawn services and landscape contractors. These guidelines will also provide more explicit instructions for businesses that sell trees, plants, and other greenery at retail.

(16) Ornamental iron. See Guidelines for Contractor-Fabricators and Contractor-Manufacturers.

(17) Painting and wall papering. (a) Painters who are contractors. Persons engaged in the business of painting and wall paper hanging, who do not maintain an inventory of paint or wall paper for resale, are considered to be contractors who are rendering installation and application services. These services are taxable unless the work involves original construction or residential work on real property. Painters who do not maintain a resale inventory should pay tax on their purchases of paint brushes, paint, wallpaper, materials, and supplies. When painting or wallpapering services are taxable, such as for commercial remodel work or for work on farm buildings, the painter should charge and remit sales tax in accordance with Kansas jobs where labor services are taxed, in the Contractor Guidelines, above.
(b) Painters who are contractor-retailers. Paint stores that maintain an inventory of paint, wall paper, and other products to sell to the public, and whose employees paint or hang wall paper, are contractor-retailers. As contractor-retailers, such businesses should buy resale inventory items exempt from tax and collect or accrue sales tax when the paint, wallpaper or other items are sold at retail or removed from inventory for employee use. See Taxing construction contracts performed by contractor-retailer in the Contractor-Retailer Guidelines, above.

(18) Ready-mix concrete. See Guidelines for Contractor-Retailers and Contractor-Manufacturers.

(19) Roofing. Persons engaged in the roofing business are contractors. A roofing contractor's labor services are taxable unless the work involves original construction or residential work. Roofers should pay tax on their purchases of roofing materials, tools, and supplies. When roofing services are taxable, such as for commercial remodel work or work on existing farm buildings, the roofers should follow the rules set out above in Kansas jobs when labor services are taxed, in the Contractor Guidelines. Roofing companies generally are not contractor-retailers and should not claim resale exemption on purchases of roofing materials unless they routinely sell roofing materials to other contractors or the public.

(20) Sign fabricators. See Guidelines for Fabricators and Guidelines for Contractor-Fabricators and Contractor-Manufacturers

(21) Tree trimming and removal. Tree trimming services and tree removal services are not taxable services. These service providers should pay sales tax on all of their purchases.

(22) Venetian blinds. Businesses that sell and install venetian blinds are considered to be retailers and not contractor-retailers. These businesses shall claim resale exemption when they buy the blinds, hangers, and other parts of venetian blinds. These businesses shall collect sales tax on the full selling price charged to the customer for the blinds, including any delivery and set-up charges. Charges for installation of venetian blinds are not exempt when the installation services are performed at a residence or during the original construction of a building or facility.

Other publications.

The following publications are available free from the Kansas Department of Revenue. Obtain your copy by visiting our web site at www.ksrevenue.org, or by calling our voice mail Forms Request Line at 785-296-4937. While the Department of Revenue has discontinued printing some of these publications, all of them are available on our web site.

  • Sales Tax Guidelines for Contractor and Contractor-Retailers
  • Sales Tax Guidelines Businesses that Sell and Service Appliances and Electronic Products
  • Sales Tax Guidelines for Contractor-Fabricators and Contractor-Manufacturers
  • Pub. KS-1216, Kansas Business Tax Application
  • Pub. KS-1500, North American Industry Classification System
  • Pub. KS-1510, Kansas Sales and Compensating Use Tax
  • Pub. KS-1520, Kansas Exemption Certificates
  • Pub. KS-1526, Kansas Sales and Use Tax for Motor Vehicle Transactions
  • Pub. KS-1527, Sales and Use Tax for Kansas Political Subdivisions
  • Pub. KS-1540, Kansas Business Taxes for Hotels, Motels & Restaurants
  • Pub. KS-1550, Sales and Use Tax for the Agricultural Industry
  • Pub. KS-1560, Tax Guide for Schools and Educational Institutions
  • Pub. KS-1700, Sales Tax Jurisdiction Code Booklet
  • KW-100, Kansas Withholding Tax Guide

Taxpayer Assistance. If you have questions about this publication, please contact the Taxpayer Assistance Center at 1-785-368-8222. Our fax number is 1-785-291-3614. Additional copies of department publications are available by calling the department's forms request line at 1-785-296-4937 or by download from our website: www.ksrevenue.org. The number for the department's hearing impaired TTY is 1-785-296-6461.

EDU-26
Rev. 05/31/2005