Information Guide

Identifying Information:General Industries Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:General Industries Self-Audit Fact Sheet
Keywords:
Approval Date:05/17/2006


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
GENERAL INDUSTRIES SELF-AUDIT FACT SHEET


GENERAL
Sales/Purchases
The taxability of purchases and/or sales of tangible personal property and labor services is summarized below. The taxability of the items apply to the buyer and seller. Sales tax should be paid to the vendor or accrued and paid directly to the State of Kansas. A properly completed, valid, exemption certificate should be provided for all purchases made without tax. Items listed below are examples and are not all-inclusive. For questions please call the number on the attached letter.
Admissions to any place providing amusement, entertainment or recreation services
Taxable
Advertising as in newspapers, radio, television, etc
Exempt
Canned software and software upgrades and labor services to modify, alter, update or maintain software
Taxable
Cleaning services, plant watering and care
Exempt
Complimentary bottled water, soft drinks, coffee, creamer, sugar, cups, etc.
Taxable
Complimentary items such as balloons, pens, candy, hats, t-shirts, etc.
Taxable
Computer equipment, copiers, printers, and fax machines
Taxable
Consulting services
Exempt
Continuing education courses
Exempt
Customized software, software upgrades and labor services to modify, alter, update or maintain customized software - "customized" software = software originally developed for a single end user
Taxable on and after July 1, 2002 through December 31, 2004 - Exempt all other periods
Direct sales to political subdivisions of Kansas, non-profit hospitals, schools, churches (Must be paid for by the exempt entity directly)
Exempt
Dues that entitle a member the use of facilities for recreation or entertainment
Taxable
Farm machinery and equipment, repair/replacement parts and repair services for such machinery and equipment not including passenger vehicles, trucks, truck tractor, semi-trailer, or pole trailer.
Exempt
Gross receipts from a coin operated device dispensing or providing tangible personal property
Taxable
Items purchased for resale (must provide vendor with a complete and valid resale exemption certificate).
Exempt
Maintenance agreements for taxable products or services
Taxable
Motor vehicle fuel purchased for off-road use without motor fuel tax
Taxable
Newspaper and magazine subscriptions, reference books and materials, forms, printed matter (including promotional brochures, etc.), business cards, notepads
Taxable
Office furniture and fixtures
Taxable
Office supplies, such as, paper, pens, pencils, markers, staples/staplers etc.
Taxable
Office utilities
Taxable
Parts and labor services of repairing, servicing, altering or maintaining tangible personal property, such as computers, printers, copiers, etc.
Taxable
Prepaid telephone calling cards
Taxable
Prescription drugs, prescribed prosthetic devices
Exempt
Professional services such as legal or accounting services
Exempt
Promotional items including but not limited to calendars, mugs, and items of clothing
Taxable
Purchase or lease of real estate, insurance
Exempt
Rental for dwellings if lease is for more than 28 consecutive days
Exempt
Renting or leasing of tangible personal property
Taxable
Sales/purchases to/by clinics or doctors offices of non-prescription items
Taxable
Telephone answering services, mobile phone services, beeper services and other similar services.
Taxable
Trash removal
Exempt
Warranty or service agreements for tangible personal property such as, computers, printers, copiers, security equipment, etc.
Taxable
Washing/waxing vehicles
Taxable
Labor services on real property: (Note: To calculate the taxable portion of a job use the following formula; Gross receipts, Less Subcontractors, Less taxed job materials = total labor)
Total labor for improvement to real property at a residence
Exempt
Total labor for improvement to real property at a commercial location
Taxable
Labor services on original construction of new building or facility
Exempt
All job materials to be installed on a job site such as lumber, nails, screws, concrete, paint, moldings, etc. unless purchased under a valid project exemption certificate
Taxable at time of purchase
Labor services for installing or maintaining tangible personal property at a residence or commercial property
Taxable
Repair and remodeling labor services to commercial real estate
Taxable
Tangible personal property sold to/purchased by all contractors, subcontractors or repairmen (unless purchased under a valid Project Exemption Certificate)
Taxable




Date Composed: 07/06/2006 Date Modified: 07/06/2006