Private Letter Ruling

Ruling Number:P-2002-032
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Rental of construction equipment to a contractor.
Approval Date:04/09/2002

Office of Policy & Research

April 9, 2002



I have been asked to respond to your letter dated April 8, 2002. You ask whether the rental of construction equipment to a contractor is exempt from Kansas sales or compensating tax. The contractor is utilizing the equipment to install a special foundation for the installation of manufacturing machinery.

The answer to your question is no. Kansas law does not exempt the purchase or rental of construction equipment by a contractor for the purpose of installing manufacturing machinery.

I enclosed notice 00-08, that explains the exemptions for the purchase and installation of manufacturing machinery.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked by operation of law without further department action if there is a change in the controlling statutes, administrative regulations, revenue rulings or case law that materially effects this determination.


Mark D. Ciardullo
Tax Specialist


Date Composed: 04/16/2002 Date Modified: 04/16/2002