· Leases of tangible personal property that require recurring periodic installment payments - Kansas sales tax is imposed on leases of tangible personal property. Each lease installment is treated as a separate sale. A sales tax rate change applies to a lease installment without regard to when the lease agreement is entered into or when installment payments are made. For periodic monthly installments, the new 6.5% rate applies to the first installment period starting on or after July 1, 2015. K.S.A. 79-3678. The customer billing for the last installment period that starts in June and ends on or after July 1, 2015 is subject to the 6.15% state rate. This treatment also applies to leased property that is relocated to Kansas for use here.
· Dry cleaning - When a dry cleaner or laundry accepts a customer's property for cleaning before July 1, 2015 and returns it on or after July 1, 2015, the charges are subject to the new 6.5% state rate.
· Installation, application, maintenance and repair services - Kansas sales tax is imposed on charges for installation, application, maintenance, and repair services, as well on charges for "servicing" property. K.S.A. 79-3603(p) & (q). Charges for labor services are sourced in the same way as sales of goods. K.S.A. 79-3669; K.S.A. 79-3670.
· Membership dues - Kansas sales tax is imposed on the payments of dues to country clubs and other organizations by members that allow them to use the organization’s facilities for recreation or entertainment. Dues covering any period that begins before July 1, 2015 are taxed to members at the prior rate, regardless of the date of the bill. Dues that cover periods that begin on or after July 1st are taxed at the new rate, regardless of the date the bill is issued to or payment is made by the member. K.S.A. 79-3678.
· Periodic charges for taxable water, gas, heat, and electricity utility service and for telecommunications, cable, direct satellite TV, and similar service - Sales of natural gas, electricity, heat and water delivered though lines or pipes are exempt from state sales tax if they are purchased for: (1) noncommercial use at a residence; (2) agricultural use; (3) use in the severing of oil; or (4) use in buildings and property that are exempt from property tax under K.S.A. 79-201b Second through Sixth. However, local sales tax continues to apply to sales of natural gas, electricity, and heat delivered though lines or pipes for: (1) noncommercial use at a residence; or (2) agricultural use. The law continues to exempt utilities that are consumed in agricultural production from both state and local sales tax. See KS-1550, Sales and Use Tax for the Agricultural Industry; K.S.A. 79-3606(n). Water provided through pipes for residential or agricultural use has not been subject to state or local sales tax since January 1, 2006. K.S.A. 12-189a. Charges for commercial use of gas, electricity, heat, and water are subject to state and local sales tax unless the use qualifies as consumed in production. See K.S.A. 79-3602(dd).
· Building Materials - State sales tax applies to building materials at the rate in place when the materials are delivered to the contractor, not when the purchase is agreed to or payment is made, unless the general contractor secured a PR-74c for the contract.
· Progress payments - A progress payment is a payment made to a contractor as work progresses on a construction project. Progress-payment clauses in a construction contract allow the contractor to bill the property owner at intervals, which may be based on the costs incurred by the contractor, the percentage of work completed, the stage of work completed, a payment schedule, or some other basis. Progress payments help reimburse the contractor for the costs it incurs in each progress-payment interval, such as paying subcontractor charges and employee wages and buying building permits, construction materials, supplies, and insurance.