Information Guide

Identifying Information:Insurance Agents/Brokers Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Insurance Agents/Brokers Self-Audit Fact Sheet
Keywords:
Approval Date:09/15/2005


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
INSURANCE AGENTS/BROKERS SELF-AUDIT FACT SHEET


INSURANCE AGENTS/BROKERS
NOTE: Due to recent law changes, insurance companies now offer many of the same services formerly provided exclusively by banking institutions.
All insurance agents/brokers must collect sales tax on the retail sale of tangible personal property or taxable services as summarized below.
Purchases by Insurance Agents/Brokers:
Furniture and fixtures, including but not limited to: desks, lamps, tables, chairs, shelving, plants, planters, artwork, signs Taxable
Pre-printed forms, printer paper, receipt books, pamphlets Taxable
Copiers, printers, and fax machines Taxable
Laptop & desktop computers Taxable
Cameras of any type, film, printers and other similar equipment Taxable
Calculators, teller machines and proof machines Taxable
ATMs and/or lease agreements for ATMs Taxable
Software & software upgrades and labor services to modify, alter, update or maintain canned software. Taxable
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
Newspaper and magazine subscriptions, reference books and materials, forms, printed matter (including promotional brochures, etc.), business cards, notepads Taxable
Lease or rental of any tangible personal property - copier, fax, vehicle Taxable
Deposit/Withdrawal slips and receipts, tape receipts Taxable
Safe deposit boxes Taxable
Security cameras and other security equipment Taxable
Office utilities Taxable
Advertising as in newspapers, radio, television, etc Exempt
Promotional items including but not limited to: calendars, mugs and items of clothing Taxable
Complimentary items such as balloons, stickers, pens and candy Taxable
Complimentary bottled water, soft drinks, coffee, creamer, sugar, cups and stir sticks Taxable
Shredding services Exempt
Cleaning services, plant watering and care Exempt
Trash removal Exempt
Purchase or Lease of real estate, Insurance Exempt
Continuing Education courses Exempt
Repair and remodeling labor services to real estate Taxable
Labor services on original construction of new building or facility Exempt
Materials & Labor services of repairing, servicing, altering or maintaining tangible personal property, such as computers, printers, copiers, ATMs, security equipment, etc. Taxable
Warranty or service agreements for tangible personal property such as, computers, printers, copiers, ATMs, security equipment, etc. Taxable
Professional services such as legal or accounting services Exempt
Sales by Insurance Agents/Brokers:
Credit/Debit card readers Taxable
Checks, checkbook covers Taxable
Retail sale of tangible personal property - T-Shirts, stuffed toys, etc. Taxable
Repossessed Vehicles (tax paid by buyer at registration) Exempt
Insurance policies Exempt
Financial Consulting Exempt




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