Information Guide

Identifying Information:Waste Collection and Removal Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Waste Collection and Removal Self-Audit Fact Sheet
Keywords:
Approval Date:05/18/2010


Body:

KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
WASTE COLLECTION AND REMOVAL SELF-AUDIT FACT SHEET

Waste Collection and Removal

The taxability of sales and purchases of tangible personal property and labor services by Waste Collection and Removal businesses are summarized below. This list is not all-inclusive.

Purchases by Waste Collection and Removal Businesses:
Kansas sales or compensating use tax applies to those purchases identified or designated as taxable in the chart below. The applicable Kansas sales or Kansas consumers’ use tax must be paid to the vendor or accrued and remitted directly to the Kansas Department of Revenue. Purchases from Kansas vendors may be reported using the retailers sales tax return. Purchases from outside this state which are delivered to this state are to be reported on the Kansas consumers compensating use tax return.

Purchases for use
Equipment used to treat, transport or store including bins, forklifts, haulers if NOT for the sole purpose of treating waste or by-products from production operations at a plant or facility. Taxable
Yard equipment including bulldozers, cranes, stackers, containers, bailers, grabbers, tractors and other equipment if NOT for the sole purpose of treating waste or by-products from production operations at a plant or facility.Taxable
Repairs and maintenance to existing buildings, and existing covered structuresTaxable
Portable toilets rental or lease including charges for the waste removal and hauling and setting up of the toilets.Taxable
Tangible property to be given away or donated. (Items that are given away or donated to a tax exempt entity are not subject to sales tax as of April 2007)Taxable
Uniforms, shop apparel, coats, hardhats, gloves etc.Taxable
Educational materials, posters, maps or other literatureTaxable
Motor vehicle fuel (gas & diesel) purchased for off road use when purchased without paying the motor fuel excise tax. This includes fuel for which the motor fuel tax (road tax) has been refunded to you.Taxable
Motor vehicles and accessories Taxable
Maintenance/repair of motor vehicles and accessories including lifts and other mechanical equipmentTaxable
Furniture and fixtures, including but not limited to: desks, lamps, tables, chairs, shelving, plants, planters, artwork, signsTaxable
Linen servicesTaxable
Laptop and desktop computers, copiers, printers, fax machines, calculators and other similar equipmentTaxable
Printed materials production and distribution (such as direct mail items)Taxable
Security systems monitoring serviceExempt
Canned Software and software upgrades and labor services to modify, alter, update or maintain software.Taxable
Custom software, custom software upgrades and labor services to modify, alter, update or maintain customized software.
"Custom" software = software developed for a single end user.
Exempt
Newspaper and magazine subscriptionsTaxable
Lease or rental of any tangible personal property - copier, fax, vehicleTaxable
Advertising in newspapers, radio, television, etc.Exempt
Security cameras and other security equipment purchasedTaxable
Promotional items including but not limited to: calendars, mugs and items of clothingTaxable
Plumbing, wiring, cabinets and other installation and repair servicesTaxable
Complimentary bottled water, soft drinks, coffee, creamer, sugar, cups and stir sticks, balloons, stickers, pens and candyTaxable
Pest control materials and suppliesTaxable
Janitorial suppliesTaxable
Trash removal, shredding services, cleaning services, plant watering and careExempt
Utilities including but not limited to electricity, gas and waterTaxable
Continuing Education courses (books and other course materials are taxable)Exempt
Repair and remodeling labor services to commercial real estateTaxable
Labor services on original construction of new building or facilityExempt
Parts and labor services of repairing, servicing, altering or maintaining tangible personal property, forklifts, 4 wheelers, tractors, computers, printers, copiers, security equipment, etc.Taxable
Warranty or service agreements for tangible personal property such as, computers, printers, copiers, security equipment, etc.Taxable
Professional services such as legal or accounting servicesExempt
Telephone answering servicesTaxable
Business cards, office supplies, paper, toner cartridges, etc.Taxable
The taxability of sales of tangible personal property and labor services by Waste Collection and Removal businesses is summarized below. This list is not all inclusive. The applicable sales tax must be collected unless the purchaser provides a valid exemption certificate*.

Sales by Waste Collection and Removal Businesses

Rental or sales of waste collection bins, dumpsters, etc. if not associated with charges for hauling of the contents.Taxable
Rental or sales of waste collection bins, dumpsters, etc. if associated with charges for hauling of the contents.Exempt
Rental or sales of portable restrooms.Taxable
Retail sales of tangible personal property including snacks, beverages, gloves, safety glasses etc.Taxable
Tree removalExempt
Snow shoveling & plowingExempt
Waste water haulingExempt
Removal, shredding and recycling of paperExempt
Collection and hauling of trash and waste.Exempt
Services performed to dismantle, demolish, raze or destroy a building or facility or a portion of a building or facility.Taxable
Asbestos or other hazardous substance removal.Taxable
Pet waste collection and removal.Exempt
* Sales/rentals to exempt entities with proper exemption certificates provided are exempt from sales tax. Ensure the exemption certificates are retained to substantiate all non taxed transactions.

Note: Kansas tax applies to the “gross receipts” from the sale of taxable goods or services in Kansas. Gross receipts include any amounts collected from the customer including any charges billed for freight, delivery or special handling.


Date Composed: 05/18/2010 Date Modified: 08/06/2010