Kansas Administrative Regulations

Regulation Number:92-19-24
Article Title: Kansas Retailers' Sales Tax
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Renting of rooms by hotels; taxable property and services.
Effective Date:07/27/2001


92-19-24. Renting of rooms by hotels; taxable
property and services. (a) Sales tax shall be imposed on
the total gross receipts received from the rental of rooms
by hotels as defined in K.S.A. 36-501 and amendments
thereto. Accommodations generally referred to as ‘‘sleeping
rooms’’ shall be subject to sales tax. Each rental of a
hotel sleeping room shall be subject to sales tax regardless
of the length of time for which the room is rented. The
transient guest tax exemption for hotel rooms rented for
more than 28 consecutive days shall not apply to the sales
tax imposition. Sales tax shall not apply to rentals of ballrooms,
banquet rooms, reception rooms, meeting rooms,
and office space.
(b) Each hotel shall be deemed to be the consumer of
all items that are not for resale and that are used to conduct
the hotel’s business. Each hotel shall pay sales tax
on each purchase of tangible personal property and taxable
services, unless specifically exempted by statute. Hotel
purchases of beds, linens, towels, furniture, equipment,
appliances, glass cups and ashtrays, and cable
television services shall be subject to sales tax. Items that
are used in the hotel room by the guest and that are disposable
in nature, including toilet tissue, facial tissue, and
soap and shampoo for the guest’s personal use, shall be
considered a component of the service of hotel room
rental, and shall be exempt from sales tax.
(c) Services of installing, applying, repairing, servicing,
maintaining, or altering the hotel’s physical plant, including
the equipment, shall be taxable.
(d) Each hotel may purchase, exempt from sales tax, premium
cable television service channels that are separately
billed to the guest. Each hotel shall collect sales tax for the
cable television services billed by the hotel to the guest.
(e) Electricity, gas, fuel, and water actually used by a
hotel in sleeping rooms shall be exempt from sales tax.
The exemption shall not apply to electricity, gas, fuel, and
water consumed in a hotel’s common areas, parking lots,
offices, swimming pools, ballrooms, banquet rooms, reception
rooms, meeting rooms, and other areas that are
either not rented by the hotel or whose rental charges are
not taxed under the act. If electricity, gas, fuel, or water
is furnished through one meter, the hotel shall furnish the
utility with a statement showing the electricity, gas, fuel,
or water actually used in the rented sleeping rooms of the
hotel so the utility can determine the percentage of electricity,
gas, fuel, or water that is taxable. Each hotel shall
make available to the department of revenue the formula
and computations used to determine the exemption.
(f) Receipts from providing laundry services, dry cleaning,
and valet services shall be taxable. If a hotel sends a
guest’s clothing out to a third-party cleaner, the hotel may
purchase the cleaning exempt from sales tax for resale
purposes, and shall include the charge and sales tax on
the guest’s bill.
(g) Each hotel purchasing water, soap, solvents, and
other cleaning materials for the hotel’s own use in clean-
ing or maintaining guest rooms, swimming pools, and
other areas of the hotel shall be subject to sales tax.
(Authorized by K.S.A. 2000 Supp. 79-3618; implementing
K.S.A. 2000 Supp. 79-3602, K.S.A. 2000 Supp. 79-3603 as
amended by SB 1, Sec. 1 and as further amended by SB
322, Sec. 2, K.S.A. 2000 Supp. 79-3606 as amended by HB
2029, Sec. 1 and as further amended by SB 332, Sec. 3;
effective, E-70-33, July 1, 1970; effective, E-71-8, Jan. 1,
1971; effective Jan. 1, 1972; amended May 1, 1987;
amended May 1, 1988; amended July 27, 2001.)